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Analyzing NYSE:ROK's Dividend Potential.

By Mill Chart

Last update: Jan 4, 2024

ROCKWELL AUTOMATION INC (NYSE:ROK) has caught the attention of dividend investors as a stock worth considering. NYSE:ROK excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Analysis for NYSE:ROK

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:ROK has been awarded a 7 for its dividend quality:

  • ROK's Dividend Yield is rather good when compared to the industry average which is at 2.44. ROK pays more dividend than 93.02% of the companies 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.
  • ROK pays out 39.26% of its income as dividend. This is a sustainable payout ratio.
  • ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Assessing Health Metrics for NYSE:ROK

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ROK has achieved a 8 out of 10:

  • An Altman-Z score of 5.28 indicates that ROK is not in any danger for bankruptcy at the moment.
  • ROK's Altman-Z score of 5.28 is amongst the best of the industry. ROK outperforms 86.05% of its industry peers.
  • ROK has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as ROK would need 2.44 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 2.44, ROK belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
  • Although ROK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • The current and quick ratio evaluation for ROK is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: NYSE:ROK

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ROK scores a 9 out of 10:

  • The Return On Assets of ROK (12.22%) is better than 93.02% of its industry peers.
  • ROK has a Return On Equity of 38.79%. This is amongst the best in the industry. ROK outperforms 96.51% of its industry peers.
  • ROK's Return On Invested Capital of 16.56% is amongst the best of the industry. ROK outperforms 94.19% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ROK is above the industry average of 11.41%.
  • The last Return On Invested Capital (16.56%) for ROK is above the 3 year average (14.22%), which is a sign of increasing profitability.
  • 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.
  • ROK has a Operating Margin of 17.80%. This is amongst the best in the industry. ROK outperforms 91.86% of its industry peers.
  • With an excellent Gross Margin value of 41.04%, ROK belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.

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

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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ROCKWELL AUTOMATION INC

NYSE:ROK (5/21/2024, 7:04:00 PM)

After market: 270.36 0 (0%)

270.36

-0.86 (-0.32%)

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