Rockwell Automation
Market Cap
US$30.8b
Last Updated
2021/04/17 22:34 UTC
Data Sources
Company Financials +
Executive Summary
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions. More Details
Rewards
PE ratio (23.6x) is below the Electrical industry average (30.8x)
Risk Analysis
Earnings are forecast to decline by an average of 5.3% per year for the next 3 years
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Rockwell Automation's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ROK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ROK's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.5%
ROK
-0.4%
US Electrical
1.3%
US Market
1 Year Return
57.7%
ROK
94.1%
US Electrical
53.9%
US Market
Return vs Industry: ROK underperformed the US Electrical industry which returned 94.1% over the past year.
Return vs Market: ROK exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| ROK | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -0.4% | 1.3% |
| 30 Day | 2.1% | 1.2% | 5.3% |
| 90 Day | 4.0% | 3.2% | 8.9% |
| 1 Year | 60.7%57.7% | 97.7%94.1% | 56.6%53.9% |
| 3 Year | 63.8%53.8% | 74.9%65.1% | 64.4%53.6% |
| 5 Year | 156.4%131.0% | 99.8%83.2% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Rockwell Automation's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 months ago | Simply Wall St
Rockwell Automation, Inc.'s (NYSE:ROK) Intrinsic Value Is Potentially 25% Below Its Share Price7 months ago | Simply Wall St
How Should Investors React To Rockwell Automation's (NYSE:ROK) CEO Pay?7 months ago | Simply Wall St
Rockwell Automation, Inc. (NYSE:ROK) Delivered A Better ROE Than Its IndustryValuation
Is Rockwell Automation undervalued compared to its fair value and its price relative to the market?
23.62x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ROK ($265.85) is trading above our estimate of fair value ($185.8)
Significantly Below Fair Value: ROK is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ROK is good value based on its PE Ratio (23.6x) compared to the US Electrical industry average (30.8x).
PE vs Market: ROK is poor value based on its PE Ratio (23.6x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: ROK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ROK is overvalued based on its PB Ratio (19.8x) compared to the US Electrical industry average (3.7x).
Future Growth
How is Rockwell Automation forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
-5.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ROK's earnings are forecast to decline over the next 3 years (-5.3% per year).
Earnings vs Market: ROK's earnings are forecast to decline over the next 3 years (-5.3% per year).
High Growth Earnings: ROK's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ROK's revenue (5.4% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: ROK's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ROK's Return on Equity is forecast to be very high in 3 years time (59.4%).
Past Performance
How has Rockwell Automation performed over the past 5 years?
7.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROK has a large one-off gain of $543.3M impacting its December 31 2020 financial results.
Growing Profit Margin: ROK's current net profit margins (21%) are higher than last year (13.7%).
Past Earnings Growth Analysis
Earnings Trend: ROK's earnings have grown by 7.1% per year over the past 5 years.
Accelerating Growth: ROK's earnings growth over the past year (41.4%) exceeds its 5-year average (7.1% per year).
Earnings vs Industry: ROK earnings growth over the past year (41.4%) exceeded the Electrical industry -8.9%.
Return on Equity
High ROE: Whilst ROK's Return on Equity (69.28%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Rockwell Automation's financial position?
Financial Position Analysis
Short Term Liabilities: ROK's short term assets ($2.9B) exceed its short term liabilities ($2.2B).
Long Term Liabilities: ROK's short term assets ($2.9B) do not cover its long term liabilities ($4.1B).
Debt to Equity History and Analysis
Debt Level: ROK's debt to equity ratio (113.7%) is considered high.
Reducing Debt: ROK's debt to equity ratio has increased from 74.1% to 113.7% over the past 5 years.
Debt Coverage: ROK's debt is well covered by operating cash flow (58%).
Interest Coverage: ROK's interest payments on its debt are well covered by EBIT (10.9x coverage).
Balance Sheet
Dividend
What is Rockwell Automation current dividend yield, its reliability and sustainability?
1.61%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ROK's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: ROK's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: ROK's dividends per share have been stable in the past 10 years.
Growing Dividend: ROK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (36.7%), ROK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ROK's dividends in 3 years are forecast to be well covered by earnings (45.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Blake Moret (57 yo)
4.75yrs
Tenure
US$9,372,655
Compensation
Mr. Blake D. Moret has been an Independent Director of PTC Inc. since July 19, 2018. Mr. Moret has been the Chief Executive Officer and President of Rockwell Automation Inc. since July 1, 2016 and has been...
CEO Compensation Analysis
Compensation vs Market: Blake's total compensation ($USD9.37M) is about average for companies of similar size in the US market ($USD11.14M).
Compensation vs Earnings: Blake's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ROK's management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: ROK's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Rockwell Automation, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rockwell Automation, Inc.
- Ticker: ROK
- Exchange: NYSE
- Founded: 1903
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: US$30.845b
- Shares outstanding: 116.16m
- Website: https://www.rockwellautomation.com
Number of Employees
Location
- Rockwell Automation, Inc.
- 1201 South Second Street
- Milwaukee
- Wisconsin
- 53204
- United States
Listings
Biography
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions. The company operates in two segments, Architecture & Software, and Control Products & Solutions. The Architect...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/17 22:34 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.