Reasonable growth potential with adequate balance sheet and pays a dividend
ROK’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ROK has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. ROK’s has produced operating cash levels of 0.66x total debt over the past year, which implies that ROK’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
ROK rewards its shareholders with attractive dividend yield, exceeding the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock.
For Rockwell Automation, there are three relevant factors you should further examine:
- Historical Performance: What has ROK’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is ROK worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ROK is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ROK? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!