ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
NYSE:ROK - New York Stock Exchange, Inc. - US7739031091 - Common Stock - Currency: USD
Overall ROK gets a fundamental rating of 6 out of 10. We evaluated ROK against 95 industry peers in the Electrical Equipment industry. While ROK has a great profitability rating, there are some minor concerns on its financial health. ROK has a decent growth rate and is not valued too expensively.
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
The Return On Assets of ROK (8.38%) is better than 89.47% of its industry peers.
With an excellent Return On Equity value of 27.09%, ROK belongs to the best of the industry, outperforming 95.79% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.12%, ROK belongs to the best of the industry, outperforming 91.58% 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 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.38% | ||
| ROE | 27.09% | ||
| ROIC | 12.12% |
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
With an excellent Profit Margin value of 11.33%, ROK belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
ROK's Profit Margin has improved in the last couple of years.
ROK has a better Operating Margin (14.84%) than 88.42% of its industry peers.
In the last couple of years the Operating Margin of ROK has grown nicely.
ROK has a Gross Margin of 38.56%. This is amongst the best in the industry. ROK outperforms 87.37% of its industry peers.
ROK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.84% | ||
| PM (TTM) | 11.33% | ||
| GM | 38.56% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ROK is still creating some value.
Compared to 1 year ago, ROK has less shares outstanding
ROK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROK has a worse debt to assets ratio.
2.2 Solvency
ROK has an Altman-Z score of 4.56. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.56, ROK belongs to the best of the industry, outperforming 83.16% of the companies in the same industry.
The Debt to FCF ratio of ROK is 3.73, which is a good value as it means it would take ROK, 3.73 years of fcf income to pay off all of its debts.
ROK has a Debt to FCF ratio of 3.73. This is in the better half of the industry: ROK outperforms 71.58% of its industry peers.
ROK has a Debt/Equity ratio of 0.98. This is a neutral value indicating ROK is somewhat dependend on debt financing.
ROK's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. ROK is outperformed by 67.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 4.56 |
ROIC/WACC1.4
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.08 indicates that ROK should not have too much problems paying its short term obligations.
ROK has a Current ratio of 1.08. This is in the lower half of the industry: ROK underperforms 72.63% of its industry peers.
A Quick Ratio of 0.72 indicates that ROK may have some problems paying its short term obligations.
ROK has a Quick ratio of 0.72. This is in the lower half of the industry: ROK underperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
ROK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.46%.
Measured over the past 5 years, ROK shows a small growth in Earnings Per Share. The EPS has been growing by 2.34% on average per year.
The Revenue has decreased by -8.76% in the past year.
ROK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
EPS 1Y (TTM)-15.46%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%-2%
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%-5.88%
3.2 Future
ROK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
ROK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.47% yearly.
EPS Next Y1.45%
EPS Next 2Y8.65%
EPS Next 3Y10.61%
EPS Next 5Y7.74%
Revenue Next Year-2.89%
Revenue Next 2Y1.74%
Revenue Next 3Y3.24%
Revenue Next 5Y5.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue 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
With a Price/Earnings ratio of 32.57, ROK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 71.58% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. ROK is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 26.85, the valuation of ROK can be described as expensive.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than 68.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. ROK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 26.85 |
4.2 Price Multiples
71.58% 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 69.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 24.5 |
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.
PEG (NY)22.51
PEG (5Y)13.94
EPS Next 2Y8.65%
EPS Next 3Y10.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, ROK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.55, ROK pays a better dividend. On top of this ROK pays more dividend than 92.63% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, ROK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
ROK pays out 62.82% 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.
DP62.82%
EPS Next 2Y8.65%
EPS Next 3Y10.61%
308.09
-0.11 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.08%
Inst Owner Change-2.22%
Ins Owners0.17%
Ins Owner Change0.44%
Market Cap34.84B
Analysts72.12
Price Target290.53 (-5.7%)
Short Float %1.73%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend5.01
Dividend Growth(5Y)5.23%
DP62.82%
Div Incr Years15
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.9%
Min EPS beat(2)1.59%
Max EPS beat(2)14.21%
EPS beat(4)4
Avg EPS beat(4)14.91%
Min EPS beat(4)1.59%
Max EPS beat(4)29.13%
EPS beat(8)6
Avg EPS beat(8)6.17%
EPS beat(12)9
Avg EPS beat(12)5.32%
EPS beat(16)13
Avg EPS beat(16)6.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)-1%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)2.41%
Revenue beat(8)3
Avg Revenue beat(8)0.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)7
Avg Revenue beat(16)-0.62%
PT rev (1m)-8.03%
PT rev (3m)-3.7%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)5.92%
EPS NY rev (3m)3.37%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 26.85 | ||
| P/S | 4.3 | ||
| P/FCF | 36.01 | ||
| P/OCF | 29.15 | ||
| P/B | 10.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.5 |
EPS(TTM)9.46
EY3.07%
EPS(NY)11.47
Fwd EY3.72%
FCF(TTM)8.56
FCFY2.78%
OCF(TTM)10.57
OCFY3.43%
SpS71.58
BVpS29.94
TBVpS-13.77
PEG (NY)22.51
PEG (5Y)13.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.38% | ||
| ROE | 27.09% | ||
| ROCE | 16.08% | ||
| ROIC | 12.12% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 35.63% | ||
| OM | 14.84% | ||
| PM (TTM) | 11.33% | ||
| GM | 38.56% | ||
| FCFM | 11.95% |
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%
ROICexcg growth 3Y2.91%
ROICexcg 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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 71.52% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.65% | ||
| Profit Quality | 105.51% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.56 |
F-Score5
WACC8.64%
ROIC/WACC1.4
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)-15.46%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%-2%
EPS Next Y1.45%
EPS Next 2Y8.65%
EPS Next 3Y10.61%
EPS Next 5Y7.74%
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%-5.88%
Revenue Next Year-2.89%
Revenue Next 2Y1.74%
Revenue Next 3Y3.24%
Revenue Next 5Y5.47%
EBIT growth 1Y-21.85%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year17.87%
EBIT Next 3Y14.81%
EBIT Next 5Y9.58%
FCF growth 1Y25.12%
FCF growth 3Y-17.56%
FCF growth 5Y-9.44%
OCF growth 1Y32.59%
OCF growth 3Y-11.85%
OCF growth 5Y-6.08%