ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROK - US7739031091 - Common Stock
403.66 USD
-5.68 (-1.39%)
403.66 USD
0 (0%)
Taking everything into account, ROK scores 6 out of 10 in our fundamental rating. ROK was compared to 91 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 is not valued too expensively and it also shows a decent 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.
ROK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROK has a better Return On Assets (7.73%) than 84.62% of its industry peers.
Looking at the Return On Equity, with a value of 23.73%, ROK belongs to the top of the industry, outperforming 94.51% of the companies in the same industry.
ROK's Return On Invested Capital of 12.89% is amongst the best of the industry. ROK outperforms 91.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROK is above the industry average of 9.90%.
| 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
The Profit Margin of ROK (10.39%) is better than 84.62% of its industry peers.
In the last couple of years the Profit Margin of ROK has declined.
With an excellent Operating Margin value of 15.43%, ROK belongs to the best of the industry, outperforming 87.91% of the companies in the same industry.
ROK's Operating Margin has declined in the last couple of years.
ROK has a Gross Margin of 48.14%. This is amongst the best in the industry. ROK outperforms 93.41% of its industry peers.
In the last couple of years the Gross Margin of ROK has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ROK is creating some value.
Compared to 1 year ago, ROK has less shares outstanding
The number of shares outstanding for ROK has been reduced compared to 5 years ago.
The debt/assets ratio for ROK has been reduced compared to a year ago.
2.2 Solvency
ROK has an Altman-Z score of 5.49. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
ROK has a Altman-Z score of 5.49. This is in the better half of the industry: ROK outperforms 79.12% of its industry peers.
The Debt to FCF ratio of ROK is 2.37, which is a good value as it means it would take ROK, 2.37 years of fcf income to pay off all of its debts.
ROK has a Debt to FCF ratio of 2.37. This is amongst the best in the industry. ROK outperforms 85.71% of its industry peers.
ROK has a Debt/Equity ratio of 0.88. This is a neutral value indicating 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 60.44% 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 | 5.49 |
ROIC/WACC1.52
WACC8.48%
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's Current ratio of 1.14 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 1.14. 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 65.93% of its industry peers.
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 | 1.14 | ||
| Quick Ratio | 0.77 |
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.
Looking at the last year, ROK shows a small growth in Revenue. The Revenue has grown by 0.94% in the last year.
Measured over the past years, ROK shows a small growth in Revenue. The Revenue has been growing by 5.68% on average per year.
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
The Earnings Per Share is expected to grow by 11.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.35% on average over the next years.
EPS Next Y15.98%
EPS Next 2Y14.6%
EPS Next 3Y13.81%
EPS Next 5Y11.11%
Revenue Next Year7.63%
Revenue Next 2Y6.7%
Revenue Next 3Y6.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.66, ROK can be considered very expensive at the moment.
71.43% of the companies in the same industry are more expensive than ROK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ROK to the average of the S&P500 Index (27.00), we can say ROK is valued slightly more expensively.
The Price/Forward Earnings ratio is 33.34, which means the current valuation is very expensive for ROK.
69.23% of the companies in the same industry are more expensive than ROK, based on the Price/Forward Earnings ratio.
ROK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 33.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROK is valued a bit cheaper than 71.43% of the companies in the same industry.
ROK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROK is cheaper than 74.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.37 | ||
| EV/EBITDA | 29.84 |
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 13.81% in the coming years.
PEG (NY)2.42
PEG (5Y)6.11
EPS Next 2Y14.6%
EPS Next 3Y13.81%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.42%.
ROK's Dividend Yield is rather good when compared to the industry average which is at 0.28. ROK pays more dividend than 93.41% of the companies in the same industry.
ROK's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.15%.
ROK has been paying a dividend for at least 10 years, so it has 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
ROK pays out 68.17% of its income as dividend. 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 2Y14.6%
EPS Next 3Y13.81%
403.66
-5.68 (-1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.46%
Inst Owner Change0%
Ins Owners0.19%
Ins Owner Change1.11%
Market Cap45.32B
Revenue(TTM)8.34B
Net Income(TTM)867.00M
Analysts75.15
Price Target401.7 (-0.49%)
Short Float %2.52%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend5.24
Dividend Growth(5Y)5.15%
DP68.17%
Div Incr Years15
Div Non Decr Years26
Ex-DateN/A
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)3.19%
PT rev (3m)14.05%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)0.36%
EPS NY rev (3m)4.32%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 33.34 | ||
| P/S | 5.43 | ||
| P/FCF | 33.37 | ||
| P/OCF | 29.35 | ||
| P/B | 12.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.84 |
EPS(TTM)10.44
EY2.59%
EPS(NY)12.11
Fwd EY3%
FCF(TTM)12.1
FCFY3%
OCF(TTM)13.75
OCFY3.41%
SpS74.3
BVpS32.55
TBVpS-9.34
PEG (NY)2.42
PEG (5Y)6.11
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 | 5.49 |
F-Score7
WACC8.48%
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 Y15.98%
EPS Next 2Y14.6%
EPS Next 3Y13.81%
EPS Next 5Y11.11%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y2.44%
Revenue growth 5Y5.68%
Sales Q2Q%13.78%
Revenue Next Year7.63%
Revenue Next 2Y6.7%
Revenue Next 3Y6.61%
Revenue Next 5Y6.35%
EBIT growth 1Y3.96%
EBIT growth 3Y-1.07%
EBIT growth 5Y3.57%
EBIT Next Year42.12%
EBIT Next 3Y19.55%
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 for 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 valuation of ROCKWELL AUTOMATION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROCKWELL AUTOMATION INC (ROK) is 38.66 and the Price/Book (PB) ratio is 12.4.
Can you provide the expected EPS growth for ROK stock?
The Earnings per Share (EPS) of ROCKWELL AUTOMATION INC (ROK) is expected to grow by 15.98% in the next year.