ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
NYSE:ROK - US7739031091 - Common Stock
349.2 USD
-6.47 (-1.82%)
349.2 USD
0 (0%)
ROK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 93 industry peers in the Electrical Equipment industry. ROK has an excellent profitability rating, but there are some minor concerns on its financial health. 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 8.63% is amongst the best of the industry. ROK outperforms 87.10% of its industry peers.
Looking at the Return On Equity, with a value of 27.89%, ROK belongs to the top of the industry, outperforming 95.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.68%, ROK belongs to the top of the industry, outperforming 88.17% 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 10.00%.
| 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
Looking at the Profit Margin, with a value of 11.98%, ROK belongs to the top of the industry, outperforming 88.17% of the companies in the same industry.
ROK's Profit Margin has improved in the last couple of years.
The Operating Margin of ROK (15.85%) is better than 89.25% of its industry peers.
In the last couple of years the Operating Margin of ROK has grown nicely.
ROK has a Gross Margin of 39.43%. This is amongst the best in the industry. ROK outperforms 88.17% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ROK 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 a worse debt to assets ratio.
2.2 Solvency
ROK has an Altman-Z score of 4.89. 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 4.89, ROK belongs to the top of the industry, outperforming 82.80% of the companies in the same industry.
The Debt to FCF ratio of ROK is 2.62, which is a good value as it means it would take ROK, 2.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.62, ROK belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that ROK is somewhat dependend on debt financing.
The Debt to Equity ratio of ROK (1.00) is worse than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.89 |
ROIC/WACC1.49
WACC8.51%
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.
With a Current ratio value of 1.06, ROK is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
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.
The Quick ratio of ROK (0.72) is worse than 67.74% 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 | 1.06 | ||
| 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 -12.12%.
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 -8.30% 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)-12.12%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%4.06%
Revenue 1Y (TTM)-8.3%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%4.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.03% on average over the next years. This is quite good.
ROK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.84% yearly.
EPS Next Y3.85%
EPS Next 2Y9.06%
EPS Next 3Y10.19%
EPS Next 5Y8.03%
Revenue Next Year-1.72%
Revenue Next 2Y2.48%
Revenue Next 3Y3.64%
Revenue Next 5Y4.84%
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
A Price/Earnings ratio of 36.49 indicates a quite expensive valuation of ROK.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than 72.04% of the companies in the same industry.
ROK is valuated rather expensively when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.20 indicates a quite expensive valuation of ROK.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than 73.12% of the companies in the same industry.
ROK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.49 | ||
| Fwd PE | 30.2 |
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 70.97% of the companies listed in the same industry.
ROK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROK is cheaper than 76.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.73 | ||
| EV/EBITDA | 26.33 |
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.
The excellent profitability rating of ROK may justify a higher PE ratio.
PEG (NY)9.49
PEG (5Y)15.62
EPS Next 2Y9.06%
EPS Next 3Y10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, ROK has a reasonable but not impressive dividend return.
ROK's Dividend Yield is rather good when compared to the industry average which is at 3.49. ROK pays more dividend than 92.47% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, ROK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.23%.
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)5.23%
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.
The dividend of ROK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.63%
EPS Next 2Y9.06%
EPS Next 3Y10.19%
349.2
-6.47 (-1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.52%
Inst Owner Change-4.09%
Ins Owners0.17%
Ins Owner Change-0.13%
Market Cap39.26B
Analysts75.29
Price Target352.05 (0.82%)
Short Float %1.78%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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)3.65%
PT rev (3m)21.17%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)1.54%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.49 | ||
| Fwd PE | 30.2 | ||
| P/S | 4.87 | ||
| P/FCF | 29.73 | ||
| P/OCF | 25.79 | ||
| P/B | 11.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.33 |
EPS(TTM)9.57
EY2.74%
EPS(NY)11.56
Fwd EY3.31%
FCF(TTM)11.74
FCFY3.36%
OCF(TTM)13.54
OCFY3.88%
SpS71.7
BVpS30.8
TBVpS-13.39
PEG (NY)9.49
PEG (5Y)15.62
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%
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 Turnover0.72
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 | 4.89 |
F-Score5
WACC8.51%
ROIC/WACC1.49
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)-12.12%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%4.06%
EPS Next Y3.85%
EPS Next 2Y9.06%
EPS Next 3Y10.19%
EPS Next 5Y8.03%
Revenue 1Y (TTM)-8.3%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%4.55%
Revenue Next Year-1.72%
Revenue Next 2Y2.48%
Revenue Next 3Y3.64%
Revenue Next 5Y4.84%
EBIT growth 1Y-11.02%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year23.59%
EBIT Next 3Y15.5%
EBIT Next 5Y9.68%
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%