ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
USA - NYSE:ROK - US7739031091 - Common Stock
366.01 USD
-4.09 (-1.11%)
366.3 USD
+0.29 (+0.08%)
We assign a fundamental rating of 6 out of 10 to ROK. ROK was compared to 91 industry peers in the Electrical Equipment industry. ROK has an excellent profitability rating, but there are some minor concerns on its financial health. ROK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ROK was profitable.
In the past year ROK had a positive cash flow from operations.
ROK had positive earnings in 4 of the past 5 years.
Of the past 5 years ROK 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.63%, ROK belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
ROK has a better Return On Equity (27.89%) than 94.51% of its industry peers.
The Return On Invested Capital of ROK (12.68%) is better than 87.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 27.89% | ||
| ROIC | 12.68% |
ROA(3y)9.77%
ROA(5y)11.21%
ROE(3y)33.33%
ROE(5y)51.23%
ROIC(3y)14.47%
ROIC(5y)14.27%
1.3 Margins
ROK has a Profit Margin of 11.98%. This is amongst the best in the industry. ROK outperforms 86.81% of its industry peers.
In the last couple of years the Profit Margin of ROK has grown nicely.
The Operating Margin of ROK (15.85%) is better than 89.01% of its industry peers.
In the last couple of years the Operating Margin of ROK has grown nicely.
ROK has a better Gross Margin (39.43%) than 89.01% of its industry peers.
In the last couple of years the Gross Margin of ROK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.85% | ||
| PM (TTM) | 11.98% | ||
| GM | 39.43% |
OM growth 3Y-3.09%
OM growth 5Y10.1%
PM growth 3Y-16.03%
PM growth 5Y2.02%
GM growth 3Y-2.28%
GM growth 5Y-2.26%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ROK has an Altman-Z score of 4.98. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.98, ROK belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
ROK has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as ROK would need 2.62 years to pay back of all of its debts.
ROK's Debt to FCF ratio of 2.62 is amongst the best of the industry. ROK outperforms 84.62% of its industry peers.
ROK has a Debt/Equity ratio of 1.00. This is a neutral value indicating ROK is somewhat dependend on debt financing.
ROK's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. ROK is outperformed by 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.51
WACC8.4%
2.3 Liquidity
ROK has a Current Ratio of 1.06. This is a normal value and indicates that ROK is financially healthy and should not expect problems in meeting its short term obligations.
ROK's Current ratio of 1.06 is on the low side compared to the rest of the industry. ROK is outperformed by 69.23% of its industry peers.
ROK has a Quick Ratio of 1.06. 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 0.72, ROK is not doing good in the industry: 67.03% of the companies in the same industry are doing better.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.41% over the past year.
Measured over the past 5 years, ROK shows a small growth in Earnings Per Share. The EPS has been growing by 6.33% on average per year.
EPS 1Y (TTM)7.41%
EPS 3Y3.2%
EPS 5Y6.33%
EPS Q2Q%35.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.78%
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 8.19% on average per year.
ROK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.35% yearly.
EPS Next Y11.24%
EPS Next 2Y12.22%
EPS Next 3Y12.38%
EPS Next 5Y8.19%
Revenue Next Year6.76%
Revenue Next 2Y6.23%
Revenue Next 3Y6.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.06 indicates a quite expensive valuation of ROK.
Compared to the rest of the industry, the Price/Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 71.43% of the companies listed in the same industry.
ROK is valuated rather expensively when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 31.52, which means the current valuation is very expensive for ROK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 69.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, ROK is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.06 | ||
| Fwd PE | 31.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 70.33% of the companies listed 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 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.17 | ||
| EV/EBITDA | 27.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ROK has an outstanding profitability rating, which may justify a higher PE ratio.
ROK's earnings are expected to grow with 12.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.12
PEG (5Y)5.54
EPS Next 2Y12.22%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.45%.
Compared to an average industry Dividend Yield of 3.53, ROK pays a better dividend. On top of this ROK pays more dividend than 91.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ROK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.23%.
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)5.23%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
60.63% of the earnings are spent on dividend by ROK. This is not a sustainable payout ratio.
ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.63%
EPS Next 2Y12.22%
EPS Next 3Y12.38%
366.01
-4.09 (-1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change5.42%
Ins Owners0.17%
Ins Owner Change0.71%
Market Cap41.15B
Revenue(TTM)N/A
Net Income(TTM)966.00M
Analysts74.71
Price Target358.22 (-2.13%)
Short Float %1.72%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend5.01
Dividend Growth(5Y)5.23%
DP60.63%
Div Incr Years15
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.19%
Min EPS beat(2)4.56%
Max EPS beat(2)15.82%
EPS beat(4)4
Avg EPS beat(4)9.05%
Min EPS beat(4)1.59%
Max EPS beat(4)15.82%
EPS beat(8)7
Avg EPS beat(8)7.64%
EPS beat(12)10
Avg EPS beat(12)8.39%
EPS beat(16)13
Avg EPS beat(16)6.34%
Revenue beat(2)2
Avg Revenue beat(2)1.87%
Min Revenue beat(2)0.96%
Max Revenue beat(2)2.78%
Revenue beat(4)2
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)2.78%
Revenue beat(8)4
Avg Revenue beat(8)0.29%
Revenue beat(12)6
Avg Revenue beat(12)0.45%
Revenue beat(16)7
Avg Revenue beat(16)-0.61%
PT rev (1m)1.7%
PT rev (3m)3.45%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.06 | ||
| Fwd PE | 31.52 | ||
| P/S | 5.1 | ||
| P/FCF | 31.17 | ||
| P/OCF | 27.03 | ||
| P/B | 11.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.06 |
EPS(TTM)10.44
EY2.85%
EPS(NY)11.61
Fwd EY3.17%
FCF(TTM)11.74
FCFY3.21%
OCF(TTM)13.54
OCFY3.7%
SpS71.7
BVpS30.8
TBVpS-13.39
PEG (NY)3.12
PEG (5Y)5.54
Graham Number85.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 27.89% | ||
| ROCE | 17.03% | ||
| ROIC | 12.68% | ||
| ROICexc | 13.48% | ||
| ROICexgc | 36.68% | ||
| OM | 15.85% | ||
| PM (TTM) | 11.98% | ||
| GM | 39.43% | ||
| FCFM | 16.38% |
ROA(3y)9.77%
ROA(5y)11.21%
ROE(3y)33.33%
ROE(5y)51.23%
ROIC(3y)14.47%
ROIC(5y)14.27%
ROICexc(3y)15.92%
ROICexc(5y)15.82%
ROICexgc(3y)43.2%
ROICexgc(5y)39.24%
ROCE(3y)18.35%
ROCE(5y)17.96%
ROICexgc growth 3Y2.91%
ROICexgc growth 5Y5.23%
ROICexc growth 3Y0.81%
ROICexc growth 5Y-4.72%
OM growth 3Y-3.09%
OM growth 5Y10.1%
PM growth 3Y-16.03%
PM growth 5Y2.02%
GM growth 3Y-2.28%
GM growth 5Y-2.26%
F-Score5
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 62.86% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.19% | ||
| Profit Quality | 136.69% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.98 |
F-Score5
WACC8.4%
ROIC/WACC1.51
Cap/Depr(3y)64.65%
Cap/Depr(5y)64.66%
Cap/Sales(3y)2.1%
Cap/Sales(5y)1.97%
Profit Quality(3y)76.22%
Profit Quality(5y)82.26%
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3Y3.2%
EPS 5Y6.33%
EPS Q2Q%35.22%
EPS Next Y11.24%
EPS Next 2Y12.22%
EPS Next 3Y12.38%
EPS Next 5Y8.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.78%
Revenue Next Year6.76%
Revenue Next 2Y6.23%
Revenue Next 3Y6.26%
Revenue Next 5Y6.35%
EBIT growth 1Y-11.02%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year23.54%
EBIT Next 3Y15.35%
EBIT Next 5Y9.64%
FCF growth 1Y65.8%
FCF growth 3Y-17.56%
FCF growth 5Y-9.44%
OCF growth 1Y62.9%
OCF growth 3Y-11.85%
OCF growth 5Y-6.08%
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 6 / 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 60.63%.