ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
USA - NYSE:ROK - US7739031091 - Common Stock
350.3 USD
-3.86 (-1.09%)
350.5 USD
+0.2 (+0.06%)
We assign a fundamental rating of 6 out of 10 to ROK. ROK was compared to 92 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.
In the past year ROK had a positive cash flow from operations.
Each year in the past 5 years ROK has been profitable.
Each year in the past 5 years ROK had a positive operating cash flow.
1.2 Ratios
ROK's Return On Assets of 8.63% is amongst the best of the industry. ROK outperforms 89.13% of its industry peers.
ROK has a better Return On Equity (27.89%) than 95.65% of its industry peers.
ROK has a better Return On Invested Capital (12.68%) than 88.04% of its industry peers.
ROK had an Average Return On Invested Capital over the past 3 years of 14.47%. This is above the industry average of 10.15%.
| 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
ROK has a Profit Margin of 11.98%. This is amongst the best in the industry. ROK outperforms 88.04% of its industry peers.
ROK's Profit Margin has improved in the last couple of years.
ROK has a Operating Margin of 15.85%. This is amongst the best in the industry. ROK outperforms 89.13% of its industry peers.
ROK's Operating Margin has improved in the last couple of years.
ROK has a Gross Margin of 39.43%. This is amongst the best in the industry. ROK outperforms 88.04% 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
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 4.84. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
ROK has a Altman-Z score of 4.84. This is in the better half of the industry: ROK outperforms 79.35% of its industry peers.
ROK has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as ROK would need 2.62 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.62, ROK belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that ROK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, ROK is doing worse than 68.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.84 |
ROIC/WACC1.54
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.06 indicates that ROK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.06, ROK is doing worse than 68.48% of the companies in the same industry.
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 68.48% of its industry peers.
| 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%.
ROK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.34% yearly.
Looking at the last year, ROK shows a decrease in Revenue. The Revenue has decreased by -8.30% in the last 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.
Based on estimates for the next years, ROK will show a small growth in Revenue. The Revenue will grow by 4.84% on average per year.
EPS Next Y4.15%
EPS Next 2Y9.28%
EPS Next 3Y10.55%
EPS Next 5Y8.03%
Revenue Next Year-1.61%
Revenue Next 2Y2.58%
Revenue Next 3Y3.68%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ROK is valuated quite expensively with a Price/Earnings ratio of 36.60.
ROK's Price/Earnings ratio is a bit cheaper when compared to the industry. ROK is cheaper than 70.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.57. ROK is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 30.18, the valuation of ROK can be described as expensive.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than the industry average as 68.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ROK to the average of the S&P500 Index (23.09), we can say ROK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.6 | ||
| Fwd PE | 30.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROK is valued a bit cheaper than the industry average as 72.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROK is valued a bit cheaper than 79.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.83 | ||
| EV/EBITDA | 25.96 |
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.
PEG (NY)8.83
PEG (5Y)15.67
EPS Next 2Y9.28%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.51%.
ROK's Dividend Yield is rather good when compared to the industry average which is at 3.09. ROK pays more dividend than 91.30% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, ROK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 60.63% 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.
DP60.63%
EPS Next 2Y9.28%
EPS Next 3Y10.55%
350.3
-3.86 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change0.38%
Ins Owners0.17%
Ins Owner Change-0.12%
Market Cap39.38B
Revenue(TTM)8.06B
Net Income(TTM)966.00M
Analysts74.71
Price Target352.23 (0.55%)
Short Float %2.12%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)0.08%
PT rev (3m)3.71%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0.29%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.6 | ||
| Fwd PE | 30.18 | ||
| P/S | 4.89 | ||
| P/FCF | 29.83 | ||
| P/OCF | 25.87 | ||
| P/B | 11.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.96 |
EPS(TTM)9.57
EY2.73%
EPS(NY)11.61
Fwd EY3.31%
FCF(TTM)11.74
FCFY3.35%
OCF(TTM)13.54
OCFY3.87%
SpS71.7
BVpS30.8
TBVpS-13.39
PEG (NY)8.83
PEG (5Y)15.67
Graham Number81.44
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%
ROICexgc growth 3Y2.91%
ROICexgc 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 | 4.84 |
F-Score5
WACC8.25%
ROIC/WACC1.54
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 Y4.15%
EPS Next 2Y9.28%
EPS Next 3Y10.55%
EPS Next 5Y8.03%
Revenue 1Y (TTM)-8.3%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%4.55%
Revenue Next Year-1.61%
Revenue Next 2Y2.58%
Revenue Next 3Y3.68%
Revenue Next 5Y4.84%
EBIT growth 1Y-11.02%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year23.54%
EBIT Next 3Y15.35%
EBIT Next 5Y9.64%
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%