ROCKWELL AUTOMATION INC (ROK)
US7739031091 - Common Stock
We assign a fundamental rating of 7 out of 10 to ROK. ROK was compared to 86 industry peers in the Electrical Equipment industry. ROK gets an excellent profitability rating and is at the same time showing great financial health properties. ROK has a decent growth rate and is not valued too expensively. These ratings could make ROK a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ROK was profitable.
ROK had a positive operating cash flow in the past year.
Each year in the past 5 years ROK has been profitable.
In the past 5 years ROK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.71%, ROK belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
Looking at the Return On Equity, with a value of 33.63%, ROK belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.88%, ROK belongs to the top of the industry, outperforming 94.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 10.34%.
The last Return On Invested Capital (14.88%) for ROK is above the 3 year average (14.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 33.63% | ||
| ROIC | 14.88% |
ROA(3y)11.18%
ROA(5y)11.79%
ROE(3y)43.21%
ROE(5y)80.2%
ROIC(3y)14.22%
ROIC(5y)14.24%
1.3 Margins
The Profit Margin of ROK (13.29%) is better than 91.67% of its industry peers.
ROK's Profit Margin has improved in the last couple of years.
ROK's Operating Margin of 16.84% is amongst the best of the industry. ROK outperforms 90.48% of its industry peers.
ROK's Operating Margin has declined in the last couple of years.
ROK has a Gross Margin of 40.51%. This is amongst the best in the industry. ROK outperforms 90.48% of its industry peers.
ROK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 13.29% | ||
| GM | 40.51% |
OM growth 3Y1.42%
OM growth 5Y-4.19%
PM growth 3Y-1.88%
PM growth 5Y13.7%
GM growth 3Y0.03%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
ROK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ROK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROK has less shares outstanding
ROK has a better debt/assets ratio than last year.
2.2 Solvency
ROK has an Altman-Z score of 4.89. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
ROK's Altman-Z score of 4.89 is amongst the best of the industry. ROK outperforms 84.52% of its industry peers.
The Debt to FCF ratio of ROK is 2.97, which is a good value as it means it would take ROK, 2.97 years of fcf income to pay off all of its debts.
ROK has a Debt to FCF ratio of 2.97. This is amongst the best in the industry. ROK outperforms 84.52% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that ROK is somewhat dependend on debt financing.
ROK's Debt to Equity ratio of 0.93 is on the low side compared to the rest of the industry. ROK is outperformed by 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 4.89 |
ROIC/WACC1.42
WACC10.48%
2.3 Liquidity
A Current Ratio of 1.25 indicates that ROK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, ROK is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
ROK has a Quick Ratio of 1.25. This is a bad value and indicates that ROK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, ROK is not doing good in the industry: 77.38% of the companies in the same industry are doing better.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ROK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.14%, which is quite good.
The Earnings Per Share has been growing by 8.34% on average over the past years. This is quite good.
ROK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.79%.
Measured over the past years, ROK shows a small growth in Revenue. The Revenue has been growing by 6.32% on average per year.
EPS 1Y (TTM)19.14%
EPS 3Y16.43%
EPS 5Y8.34%
EPS growth Q2Q-17.07%
Revenue 1Y (TTM)15.79%
Revenue growth 3Y12.69%
Revenue growth 5Y6.32%
Revenue growth Q2Q3.59%
3.2 Future
Based on estimates for the next years, ROK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.57% on average per year.
Based on estimates for the next years, ROK will show a small growth in Revenue. The Revenue will grow by 5.37% on average per year.
EPS Next Y1.12%
EPS Next 2Y5.9%
EPS Next 3Y6.79%
EPS Next 5Y9.57%
Revenue Next Year3.09%
Revenue Next 2Y4.1%
Revenue Next 3Y4.41%
Revenue Next 5Y5.37%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.08, the valuation of ROK can be described as rather expensive.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, ROK is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.87, the valuation of ROK can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than the industry average as 77.38% of the companies are valued more expensively.
ROK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
67.86% of the companies in the same industry are more expensive than ROK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.22 | ||
| EV/EBITDA | 18.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROK does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ROK may justify a higher PE ratio.
PEG (NY)20.63
PEG (5Y)2.77
EPS Next 2Y5.9%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.81%.
ROK's Dividend Yield is rather good when compared to the industry average which is at 2.46. ROK pays more dividend than 92.86% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, ROK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.95%.
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.
Dividend Growth(5Y)5.95%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
ROK pays out 45.37% of its income as dividend. This is a bit on the high side, but may be sustainable.
ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.37%
EPS Next 2Y5.9%
EPS Next 3Y6.79%
ROCKWELL AUTOMATION INC
NYSE:ROK (5/2/2024, 7:17:08 PM)
After market: 270.04 0 (0%)270.04
+0.29 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.08 | ||
| Fwd PE | 19.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)20.63
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.71% | ||
| ROE | 33.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.84% | ||
| PM (TTM) | 13.29% | ||
| GM | 40.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.14%
EPS 3Y16.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.79%
Revenue growth 3Y12.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y