ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROK - US7739031091 - Common Stock
400.61 USD
-1.61 (-0.4%)
400.61 USD
0 (0%)
Overall ROK gets a fundamental rating of 6 out of 10. We evaluated ROK against 90 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making ROK a very profitable company, without any liquidiy or solvency issues. ROK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ROK was profitable.
ROK had a positive operating cash flow in the past year.
ROK had positive earnings in each of the past 5 years.
In the past 5 years ROK always reported a positive cash flow from operatings.
1.2 Ratios
ROK's Return On Assets of 7.73% is amongst the best of the industry. ROK outperforms 84.44% of its industry peers.
The Return On Equity of ROK (23.73%) is better than 94.44% of its industry peers.
ROK has a better Return On Invested Capital (12.89%) than 91.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROK is above the industry average of 9.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 23.73% | ||
| ROIC | 12.89% |
ROA(3y)9.46%
ROA(5y)9.94%
ROE(3y)29.87%
ROE(5y)36.09%
ROIC(3y)14.04%
ROIC(5y)13.73%
1.3 Margins
ROK has a Profit Margin of 10.39%. This is amongst the best in the industry. ROK outperforms 84.44% of its industry peers.
In the last couple of years the Profit Margin of ROK has declined.
The Operating Margin of ROK (15.43%) is better than 87.78% of its industry peers.
In the last couple of years the Operating Margin of ROK has declined.
The Gross Margin of ROK (48.14%) is better than 92.22% of its industry peers.
ROK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 48.14% |
OM growth 3Y-3.43%
OM growth 5Y-1.99%
PM growth 3Y-4.61%
PM growth 5Y-8.43%
GM growth 3Y6.4%
GM growth 5Y3.27%
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.
The number of shares outstanding for ROK has been reduced compared to 1 year ago.
ROK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROK has an improved debt to assets ratio.
2.2 Solvency
ROK has an Altman-Z score of 5.43. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.43, ROK is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ROK has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as ROK would need 2.37 years to pay back of all of its debts.
ROK has a Debt to FCF ratio of 2.37. This is amongst the best in the industry. ROK outperforms 84.44% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that ROK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, ROK is doing worse than 62.22% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.43 |
ROIC/WACC1.52
WACC8.46%
2.3 Liquidity
ROK has a Current Ratio of 1.14. This is a normal value and indicates that ROK is financially healthy and should not expect problems in meeting its short term obligations.
ROK has a worse Current ratio (1.14) than 72.22% of its industry peers.
ROK has a Quick Ratio of 1.14. This is a bad value and indicates that ROK is not financially healthy enough and could expect problems in meeting its short term obligations.
ROK's Quick ratio of 0.77 is on the low side compared to the rest of the industry. ROK is outperformed by 68.89% of its industry peers.
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 | 1.14 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
ROK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
The Earnings Per Share has been growing slightly by 6.33% on average over the past years.
ROK shows a small growth in Revenue. In the last year, the Revenue has grown by 0.94%.
The Revenue has been growing slightly by 5.68% on average over the past years.
EPS 1Y (TTM)7.41%
EPS 3Y3.2%
EPS 5Y6.33%
EPS Q2Q%35.22%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y2.44%
Revenue growth 5Y5.68%
Sales Q2Q%13.78%
3.2 Future
ROK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.11% yearly.
Based on estimates for the next years, ROK will show a small growth in Revenue. The Revenue will grow by 6.35% on average per year.
EPS Next Y15.57%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
EPS Next 5Y11.11%
Revenue Next Year7.49%
Revenue Next 2Y6.74%
Revenue Next 3Y6.69%
Revenue Next 5Y6.35%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 38.37, which means the current valuation is very expensive for ROK.
Compared to the rest of the industry, the Price/Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 71.11% of the companies listed in the same industry.
ROK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.28.
The Price/Forward Earnings ratio is 33.20, which means the current valuation is very expensive for ROK.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
ROK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.37 | ||
| Fwd PE | 33.2 |
4.2 Price Multiples
ROK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ROK is cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 74.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.12 | ||
| EV/EBITDA | 29.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ROK may justify a higher PE ratio.
A more expensive valuation may be justified as ROK's earnings are expected to grow with 13.85% in the coming years.
PEG (NY)2.46
PEG (5Y)6.06
EPS Next 2Y14.67%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.08, ROK pays a better dividend. On top of this ROK pays more dividend than 91.11% of the companies listed in the same industry.
With a Dividend Yield of 1.37, ROK pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.15%.
ROK has paid a dividend for at least 10 years, which is a reliable track record.
ROK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.15%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
68.17% of the earnings are spent on dividend by ROK. This is not a sustainable payout ratio.
The dividend of ROK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.17%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
400.61
-1.61 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.72%
Inst Owner Change5.74%
Ins Owners0.17%
Ins Owner Change-0.1%
Market Cap44.98B
Revenue(TTM)8.34B
Net Income(TTM)867.00M
Analysts75.15
Price Target393.38 (-1.8%)
Short Float %1.78%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend5.24
Dividend Growth(5Y)5.15%
DP68.17%
Div Incr Years15
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.62%
Min EPS beat(2)4.56%
Max EPS beat(2)12.68%
EPS beat(4)4
Avg EPS beat(4)11.82%
Min EPS beat(4)4.56%
Max EPS beat(4)15.82%
EPS beat(8)7
Avg EPS beat(8)8.66%
EPS beat(12)10
Avg EPS beat(12)9.34%
EPS beat(16)13
Avg EPS beat(16)6.74%
Revenue beat(2)2
Avg Revenue beat(2)3.46%
Min Revenue beat(2)2.78%
Max Revenue beat(2)4.14%
Revenue beat(4)3
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-1%
Max Revenue beat(4)4.14%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)8
Avg Revenue beat(16)0.03%
PT rev (1m)9.81%
PT rev (3m)11.77%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)4.28%
EPS NY rev (1m)3.89%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.37 | ||
| Fwd PE | 33.2 | ||
| P/S | 5.39 | ||
| P/FCF | 33.12 | ||
| P/OCF | 29.13 | ||
| P/B | 12.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.35 |
EPS(TTM)10.44
EY2.61%
EPS(NY)12.07
Fwd EY3.01%
FCF(TTM)12.1
FCFY3.02%
OCF(TTM)13.75
OCFY3.43%
SpS74.3
BVpS32.55
TBVpS-9.34
PEG (NY)2.46
PEG (5Y)6.06
Graham Number87.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 23.73% | ||
| ROCE | 16.56% | ||
| ROIC | 12.89% | ||
| ROICexc | 13.65% | ||
| ROICexgc | 33.64% | ||
| OM | 15.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 48.14% | ||
| FCFM | 16.28% |
ROA(3y)9.46%
ROA(5y)9.94%
ROE(3y)29.87%
ROE(5y)36.09%
ROIC(3y)14.04%
ROIC(5y)13.73%
ROICexc(3y)15.4%
ROICexc(5y)14.97%
ROICexgc(3y)40.79%
ROICexgc(5y)39.65%
ROCE(3y)17.7%
ROCE(5y)17.31%
ROICexgc growth 3Y-7.6%
ROICexgc growth 5Y-0.38%
ROICexc growth 3Y-4.85%
ROICexc growth 5Y-6.39%
OM growth 3Y-3.43%
OM growth 5Y-1.99%
PM growth 3Y-4.61%
PM growth 5Y-8.43%
GM growth 3Y6.4%
GM growth 5Y3.27%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 57.23% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 8.2 | ||
| Cash Conversion | 95.78% | ||
| Profit Quality | 156.63% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 5.43 |
F-Score7
WACC8.46%
ROIC/WACC1.52
Cap/Depr(3y)64.04%
Cap/Depr(5y)62.91%
Cap/Sales(3y)2.24%
Cap/Sales(5y)2.05%
Profit Quality(3y)103.98%
Profit Quality(5y)93.89%
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3Y3.2%
EPS 5Y6.33%
EPS Q2Q%35.22%
EPS Next Y15.57%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
EPS Next 5Y11.11%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y2.44%
Revenue growth 5Y5.68%
Sales Q2Q%13.78%
Revenue Next Year7.49%
Revenue Next 2Y6.74%
Revenue Next 3Y6.69%
Revenue Next 5Y6.35%
EBIT growth 1Y3.96%
EBIT growth 3Y-1.07%
EBIT growth 5Y3.57%
EBIT Next Year41.85%
EBIT Next 3Y19.13%
EBIT Next 5Y11.76%
FCF growth 1Y112.49%
FCF growth 3Y25.81%
FCF growth 5Y6.17%
OCF growth 1Y78.75%
OCF growth 3Y23.33%
OCF growth 5Y6.62%
ROCKWELL AUTOMATION INC / ROK FAQ
Can you provide the ChartMill fundamental rating for ROCKWELL AUTOMATION INC?
ChartMill assigns a fundamental rating of 6 / 10 to ROK.
What is the valuation status of ROCKWELL AUTOMATION INC (ROK) stock?
ChartMill assigns a valuation rating of 4 / 10 to ROCKWELL AUTOMATION INC (ROK). This can be considered as Fairly Valued.
How profitable is ROCKWELL AUTOMATION INC (ROK) stock?
ROCKWELL AUTOMATION INC (ROK) has a profitability rating of 8 / 10.
What is the financial health of ROCKWELL AUTOMATION INC (ROK) stock?
The financial health rating of ROCKWELL AUTOMATION INC (ROK) is 7 / 10.
How sustainable is the dividend of ROCKWELL AUTOMATION INC (ROK) stock?
The dividend rating of ROCKWELL AUTOMATION INC (ROK) is 6 / 10 and the dividend payout ratio is 68.17%.