ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
NYSE:ROK - New York Stock Exchange, Inc. - US7739031091 - Common Stock - Currency: USD
Taking everything into account, ROK scores 5 out of 10 in our fundamental rating. ROK was compared to 93 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.
Each year in the past 5 years ROK has been profitable.
ROK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROK's Return On Assets of 8.21% is amongst the best of the industry. ROK outperforms 88.17% of its industry peers.
The Return On Equity of ROK (26.25%) is better than 95.70% of its industry peers.
ROK has a better Return On Invested Capital (11.64%) than 86.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 9.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 26.25% | ||
| ROIC | 11.64% |
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 11.33%. This is amongst the best in the industry. ROK outperforms 89.25% of its industry peers.
ROK's Profit Margin has improved in the last couple of years.
ROK has a better Operating Margin (15.02%) than 88.17% of its industry peers.
In the last couple of years the Operating Margin of ROK has grown nicely.
With an excellent Gross Margin value of 38.87%, ROK belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
In the last couple of years the Gross Margin of ROK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.02% | ||
| PM (TTM) | 11.33% | ||
| GM | 38.87% |
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.
ROK has less shares outstanding than it did 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 4.85. 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 4.85, ROK is in the better half of the industry, outperforming 78.49% of the companies in the same industry.
ROK has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as ROK would need 3.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.44, ROK is doing good in the industry, outperforming 75.27% of the companies in the same industry.
ROK has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.07, ROK is doing worse than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 4.85 |
ROIC/WACC1.34
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.05 indicates that ROK should not have too much problems paying its short term obligations.
ROK's Current ratio of 1.05 is on the low side compared to the rest of the industry. ROK is outperformed by 68.82% of its industry peers.
ROK has a Quick Ratio of 1.05. 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 0.72 is on the low side compared to the rest of the industry. ROK is outperformed by 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for ROK have decreased strongly by -15.46% in the last year.
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.
ROK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.27%.
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)-11.27%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%-5.88%
3.2 Future
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
Based on estimates for the next years, ROK will show a small growth in Revenue. The Revenue will grow by 5.41% on average per year.
EPS Next Y2.27%
EPS Next 2Y9.28%
EPS Next 3Y10.99%
EPS Next 5Y8.01%
Revenue Next Year-2.68%
Revenue Next 2Y1.9%
Revenue Next 3Y3.3%
Revenue Next 5Y5.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.27, ROK can be considered very expensive at the moment.
72.04% of the companies in the same industry are more expensive than ROK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.41. ROK is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 29.56, ROK can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than 69.89% of the companies in the same industry.
ROK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.27 | ||
| Fwd PE | 29.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROK is valued a bit cheaper than the industry average as 72.04% of the companies are valued more expensively.
75.27% of the companies in the same industry are more expensive than ROK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.15 | ||
| EV/EBITDA | 26.91 |
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.
PEG (NY)15.98
PEG (5Y)15.52
EPS Next 2Y9.28%
EPS Next 3Y10.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, ROK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.27, ROK pays a better dividend. On top of this ROK pays more dividend than 93.55% of the companies listed in the same industry.
ROK's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 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
ROK pays out 64.31% of its income as dividend. This is not a sustainable payout ratio.
ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.31%
EPS Next 2Y9.28%
EPS Next 3Y10.99%
343.07
-1.88 (-0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.24%
Inst Owner Change-0.1%
Ins Owners0.17%
Ins Owner Change-0.22%
Market Cap38.67B
Analysts73.94
Price Target326.58 (-4.81%)
Short Float %1.58%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend5.01
Dividend Growth(5Y)5.23%
DP64.31%
Div Incr Years15
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.01%
Min EPS beat(2)14.21%
Max EPS beat(2)15.82%
EPS beat(4)4
Avg EPS beat(4)15.19%
Min EPS beat(4)1.59%
Max EPS beat(4)29.13%
EPS beat(8)6
Avg EPS beat(8)6.33%
EPS beat(12)10
Avg EPS beat(12)8.91%
EPS beat(16)13
Avg EPS beat(16)6.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.96%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)0.96%
Revenue beat(8)3
Avg Revenue beat(8)-0.69%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)7
Avg Revenue beat(16)-0.65%
PT rev (1m)1.15%
PT rev (3m)3.38%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)4.08%
EPS NY rev (1m)0.81%
EPS NY rev (3m)5.12%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.27 | ||
| Fwd PE | 29.56 | ||
| P/S | 4.85 | ||
| P/FCF | 36.15 | ||
| P/OCF | 30.34 | ||
| P/B | 11.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.91 |
EPS(TTM)9.46
EY2.76%
EPS(NY)11.61
Fwd EY3.38%
FCF(TTM)9.49
FCFY2.77%
OCF(TTM)11.31
OCFY3.3%
SpS70.69
BVpS30.51
TBVpS-13.23
PEG (NY)15.98
PEG (5Y)15.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 26.25% | ||
| ROCE | 16.15% | ||
| ROIC | 11.64% | ||
| ROICexc | 12.29% | ||
| ROICexgc | 31.64% | ||
| OM | 15.02% | ||
| PM (TTM) | 11.33% | ||
| GM | 38.87% | ||
| FCFM | 13.43% |
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-Score4
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 64.2% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.09% | ||
| Profit Quality | 118.49% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 4.85 |
F-Score4
WACC8.66%
ROIC/WACC1.34
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 Y2.27%
EPS Next 2Y9.28%
EPS Next 3Y10.99%
EPS Next 5Y8.01%
Revenue 1Y (TTM)-11.27%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%-5.88%
Revenue Next Year-2.68%
Revenue Next 2Y1.9%
Revenue Next 3Y3.3%
Revenue Next 5Y5.41%
EBIT growth 1Y-23.15%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year21.89%
EBIT Next 3Y15.31%
EBIT Next 5Y9.68%
FCF growth 1Y21.17%
FCF growth 3Y-17.56%
FCF growth 5Y-9.44%
OCF growth 1Y27.73%
OCF growth 3Y-11.85%
OCF growth 5Y-6.08%