NYSE:ROK

Stock Analysis Report

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Executive Summary

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions. More Details


Snowflake Analysis

Solid track record established dividend payer.


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

-3.8%

ROK

-4.0%

US Electrical

0.7%

US Market


1 Year Return

26.5%

ROK

30.5%

US Electrical

22.2%

US Market

Return vs Industry: ROK underperformed the US Electrical industry which returned 31.9% over the past year.

Return vs Market: ROK exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

ROKIndustryMarket
7 Day-3.8%-4.0%0.7%
30 Day0.5%12.2%11.8%
90 Day7.8%17.6%8.6%
1 Year29.0%26.5%33.2%30.5%25.0%22.2%
3 Year37.8%29.4%52.5%44.1%49.4%39.5%
5 Year164.7%137.6%65.7%54.1%100.2%78.1%

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

Valuation

Is Rockwell Automation undervalued compared to its fair value and its price relative to the market?

27.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROK ($246.69) is trading above our estimate of fair value ($155.88)

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 (27.9x) compared to the US Electrical industry average (29.3x).

PE vs Market: ROK is poor value based on its PE Ratio (27.9x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: ROK is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: ROK is overvalued based on its PB Ratio (27.9x) compared to the US Electrical industry average (4.3x).


Next Steps

Future Growth

How is Rockwell Automation forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROK's forecast earnings growth (6.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ROK's earnings (6.2% per year) are forecast to grow slower than the US market (21.8% per year).

High Growth Earnings: ROK's earnings are forecast to grow, but not significantly.

Revenue vs Market: ROK's revenue (6.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ROK's revenue (6.2% 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 (122.8%).


Next Steps

Past Performance

How has Rockwell Automation performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROK has high quality earnings.

Growing Profit Margin: ROK's current net profit margins (16.2%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: ROK's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: ROK's earnings growth over the past year (46.6%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: ROK earnings growth over the past year (46.6%) exceeded the Electrical industry -14.7%.


Return on Equity

High ROE: Whilst ROK's Return on Equity (75.97%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Rockwell Automation's financial position?


Financial Position Analysis

Short Term Liabilities: ROK's short term assets ($2.7B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: ROK's short term assets ($2.7B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: ROK's debt to equity ratio (148.4%) is considered high.

Reducing Debt: ROK's debt to equity ratio has increased from 66.7% to 148.4% over the past 5 years.

Debt Coverage: ROK's debt is well covered by operating cash flow (56%).

Interest Coverage: ROK's interest payments on its debt are well covered by EBIT (11x coverage).


Balance Sheet


Next Steps

Dividend

What is Rockwell Automation current dividend yield, its reliability and sustainability?

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROK's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: ROK's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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 (46.2%), 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 (44.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Blake Moret (57 yo)

4.42yrs

Tenure

US$11,710,165

Compensation

Mr. Blake D. Moret has been a Independent Director of PTC Inc. since July 19, 2018. He has been the Chief Executive Officer and President of Rockwell Automation Inc. since July 1, 2016 and its Chairman sin...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD11.71M) is about average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Blake's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Blake Moret
Chairman4.42yrsUS$11.71m0.040%
$ 11.5m
Rebecca House
Senior VP0.33yrUS$1.89m0.0047%
$ 1.4m
Frank Kulaszewicz
Senior Vice President of Lifecycle Servicesno dataUS$4.34m0.017%
$ 4.7m
Francis Wlodarczyk
Senior Vice President2.42yrsUS$2.82mno data
Steven Etzel
Senior VP & CFO0.083yrno data0.0082%
$ 2.4m
Sujeet Chand
CTO & Senior VP15.25yrsUS$2.24m0.030%
$ 8.7m
Christopher Nardecchia
Interim Senior VP of Software & Control and Chief Information Officer3.08yrsno data0.0066%
$ 1.9m
Jessica Kourakos
Head of Investor Relationsno datano datano data
Patricia Contreras
Vice President of Global Public Affairs0.42yrno datano data
Thomas Donato
Senior Vice President of Global Sales & Marketing1.92yrsno data0.00083%
$ 237.9k
Elik Fooks
Senior Vice President of Corporate Development3.5yrsno data0.0062%
$ 1.8m
John Miller
Chief Intellectual Property Counsel & VP16.17yrsno data0.0037%
$ 1.1m

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: ROK's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Blake Moret
Chairman4.42yrsUS$11.71m0.040%
$ 11.5m
Lisa Payne
Independent Director5.92yrsUS$267.63k0.0050%
$ 1.4m
James Keane
Independent Director9.92yrsUS$263.00k0.0099%
$ 2.8m
Donald Parfet
Lead Independent Directorno dataUS$288.22k0.0097%
$ 2.8m
Steven Kalmanson
Independent Director9.92yrsUS$252.31k0.0099%
$ 2.8m
J. Holloman
Independent Director7.67yrsUS$279.09kno data
Lawrence Kingsley
Independent Director7.67yrsUS$279.34k0.0070%
$ 2.0m
Pam Murphy
Independent Director1.5yrsUS$97.84k0.0015%
$ 429.9k
Thomas Rosamilia
Independent Director4.67yrsUS$255.00k0.0039%
$ 1.1m
William Gipson
Director0.083yrno data0.00039%
$ 111.8k
Patricia Watson
Independent Director3.42yrsUS$257.50k0.0027%
$ 773.8k

5.3yrs

Average Tenure

61yo

Average Age

Experienced Board: ROK's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ROK insiders have only sold shares 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$28.660b
  • Shares outstanding: 116.18m
  • Website: https://www.rockwellautomation.com

Number of Employees


Location

  • Rockwell Automation, Inc.
  • 1201 South Second Street
  • Milwaukee
  • Wisconsin
  • 53204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0KXALSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
RWLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
RWLXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
ROK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
RWLETLX (Eurotlx)YesCommon StockITEURJan 1968
R1OK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:00
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.