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Analyzing NYSE:ROK's Dividend Potential.

By Mill Chart

Last update: Nov 23, 2023

ROCKWELL AUTOMATION INC (NYSE:ROK) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:ROK demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Analyzing Dividend Metrics

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:ROK was assigned a score of 7 for dividend:

  • Compared to an average industry Dividend Yield of 2.32, ROK pays a better dividend. On top of this ROK pays more dividend than 94.19% of the companies listed in the same industry.
  • ROK has been paying a dividend for at least 10 years, so it has a reliable track record.
  • ROK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
  • 39.26% of the earnings are spent on dividend by ROK. This is a low number and sustainable payout ratio.
  • The dividend of ROK is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health for NYSE:ROK

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ROK scores a 8 out of 10:

  • ROK has an Altman-Z score of 5.01. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of ROK (5.01) is better than 82.56% of its industry peers.
  • The Debt to FCF ratio of ROK is 2.44, which is a good value as it means it would take ROK, 2.44 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ROK (2.44) is better than 83.72% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for ROK, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
  • ROK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How do we evaluate the Profitability for NYSE:ROK?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ROK has achieved a 9:

  • With an excellent Return On Assets value of 12.22%, ROK belongs to the best of the industry, outperforming 94.19% of the companies in the same industry.
  • ROK has a better Return On Equity (38.79%) than 96.51% of its industry peers.
  • With an excellent Return On Invested Capital value of 16.56%, ROK belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ROK is above the industry average of 10.95%.
  • The 3 year average ROIC (14.22%) for ROK is below the current ROIC(16.56%), indicating increased profibility in the last year.
  • ROK has a Profit Margin of 15.25%. This is amongst the best in the industry. ROK outperforms 93.02% of its industry peers.
  • ROK's Profit Margin has improved in the last couple of years.
  • The Operating Margin of ROK (17.80%) is better than 91.86% of its industry peers.
  • ROK has a Gross Margin of 41.04%. This is amongst the best in the industry. ROK outperforms 91.86% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of ROK for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ROCKWELL AUTOMATION INC

NYSE:ROK (2/23/2024, 10:05:05 AM)

279.8

+1.18 (+0.42%)

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