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. ROK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ROK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ROK had positive earnings in the past year.
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 84.62% of its industry peers.
ROK's Return On Equity of 23.73% is amongst the best of the industry. ROK outperforms 94.51% of its industry peers.
With an excellent Return On Invested Capital value of 12.89%, ROK belongs to the best of the industry, outperforming 91.21% of the companies in the same industry.
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
ROK has a better Profit Margin (10.39%) than 84.62% of its industry peers.
ROK's Profit Margin has declined in the last couple of years.
ROK's Operating Margin of 15.43% is amongst the best of the industry. ROK outperforms 87.91% of its industry peers.
In the last couple of years the Operating Margin of ROK has declined.
With an excellent Gross Margin value of 48.14%, ROK belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ROK is still creating some value.
ROK has less shares outstanding than it did 1 year ago.
ROK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ROK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.49 indicates that ROK is not in any danger for 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's Debt to FCF ratio of 2.37 is amongst the best of 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.
ROK's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. ROK is outperformed by 60.44% of its industry peers.
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/WACC1.53
WACC8.44%
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.
Looking at the Current ratio, with a value of 1.14, ROK is doing worse than 69.23% of the companies in the same industry.
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 has a Quick ratio of 0.77. This is in the lower half of the industry: ROK underperforms 65.93% 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.
The Revenue has been growing slightly by 0.94% in the past year.
ROK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.68% yearly.
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
Based on estimates for the next years, ROK will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.11% on average per year.
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.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.00, ROK is valued a bit more expensive.
A Price/Forward Earnings ratio of 33.34 indicates a quite expensive valuation of ROK.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than 69.23% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, ROK is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 33.34 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than ROK, based on the Enterprise Value to EBITDA ratio.
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 ROK does not grow enough to justify the current Price/Earnings ratio.
ROK has an outstanding profitability rating, which may justify a higher PE ratio.
ROK's earnings are expected to grow with 13.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)6.11
EPS Next 2Y14.6%
EPS Next 3Y13.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, ROK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.28, ROK pays a better dividend. On top of this ROK pays more dividend than 93.41% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.94, ROK is paying slightly less dividend.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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
WACC8.44%
ROIC/WACC1.53
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.