ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROK - US7739031091 - Common Stock
410.23 USD
+9.62 (+2.4%)
410.23 USD
0 (0%)
ROK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 90 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 is not valued too expensively and it also shows a decent 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.
In the past 5 years ROK has always been profitable.
In the past 5 years ROK always reported a positive cash flow from operatings.
1.2 Ratios
ROK has a Return On Assets of 7.73%. This is amongst the best in the industry. ROK outperforms 84.44% of its industry peers.
ROK has a better Return On Equity (23.73%) than 94.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.89%, ROK belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
ROK had an Average Return On Invested Capital over the past 3 years of 14.04%. This is above the industry average of 9.93%.
| 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
With an excellent Profit Margin value of 10.39%, ROK belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
ROK's Profit Margin has declined in the last couple of years.
ROK has a Operating Margin of 15.43%. This is amongst the best in the industry. ROK outperforms 87.78% of its industry peers.
In the last couple of years the Operating Margin of ROK has declined.
Looking at the Gross Margin, with a value of 48.14%, ROK belongs to the top of the industry, outperforming 92.22% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ROK is creating some value.
ROK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROK has less shares outstanding
Compared to 1 year ago, ROK has an improved debt to assets ratio.
2.2 Solvency
ROK has an Altman-Z score of 5.42. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
ROK has a better Altman-Z score (5.42) than 80.00% of its industry peers.
ROK has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as ROK would need 2.37 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.37, ROK belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
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 62.22% 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 | 5.42 |
ROIC/WACC1.52
WACC8.47%
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.
ROK has a worse Current ratio (1.14) than 72.22% of its industry peers.
A Quick Ratio of 0.77 indicates that ROK may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, ROK is not doing good in the industry: 68.89% of the companies in the same industry are doing better.
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 | 1.14 | ||
| 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%.
ROK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.33% yearly.
Looking at the last year, ROK shows a small growth in Revenue. The Revenue has grown by 0.94% in the last 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
The Earnings Per Share is expected to grow by 11.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.35% on average over the next years.
EPS Next Y15.57%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
EPS Next 5Y11.11%
Revenue Next Year7.49%
Revenue Next 2Y6.74%
Revenue Next 3Y6.69%
Revenue Next 5Y6.35%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 39.29, ROK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than 71.11% of the companies in the same industry.
ROK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.29.
The Price/Forward Earnings ratio is 34.00, which means the current valuation is very expensive for ROK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ROK to the average of the S&P500 Index (23.51), we can say ROK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.29 | ||
| Fwd PE | 34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROK is valued a bit cheaper than 70.00% of the companies in the same industry.
ROK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROK is cheaper than 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.92 | ||
| EV/EBITDA | 29.23 |
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.
A more expensive valuation may be justified as ROK's earnings are expected to grow with 13.85% in the coming years.
PEG (NY)2.52
PEG (5Y)6.2
EPS Next 2Y14.67%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.37%.
Compared to an average industry Dividend Yield of 3.08, ROK pays a better dividend. On top of this ROK pays more dividend than 91.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ROK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.15%.
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)5.15%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
68.17% 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.
DP68.17%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
410.23
+9.62 (+2.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.72%
Inst Owner Change5.74%
Ins Owners0.17%
Ins Owner Change-0.1%
Market Cap46.06B
Revenue(TTM)8.34B
Net Income(TTM)867.00M
Analysts75.15
Price Target393.38 (-4.11%)
Short Float %1.78%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend5.24
Dividend Growth(5Y)5.15%
DP68.17%
Div Incr Years15
Div Non Decr Years26
Ex-Date
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)9.81%
PT rev (3m)11.77%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)4.28%
EPS NY rev (1m)3.89%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0.43%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.29 | ||
| Fwd PE | 34 | ||
| P/S | 5.52 | ||
| P/FCF | 33.92 | ||
| P/OCF | 29.83 | ||
| P/B | 12.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.23 |
EPS(TTM)10.44
EY2.54%
EPS(NY)12.07
Fwd EY2.94%
FCF(TTM)12.1
FCFY2.95%
OCF(TTM)13.75
OCFY3.35%
SpS74.3
BVpS32.55
TBVpS-9.34
PEG (NY)2.52
PEG (5Y)6.2
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 | 5.42 |
F-Score7
WACC8.47%
ROIC/WACC1.52
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 Y15.57%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
EPS Next 5Y11.11%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y2.44%
Revenue growth 5Y5.68%
Sales Q2Q%13.78%
Revenue Next Year7.49%
Revenue Next 2Y6.74%
Revenue Next 3Y6.69%
Revenue Next 5Y6.35%
EBIT growth 1Y3.96%
EBIT growth 3Y-1.07%
EBIT growth 5Y3.57%
EBIT Next Year41.85%
EBIT Next 3Y19.13%
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 of ROCKWELL AUTOMATION INC (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 financial health of ROCKWELL AUTOMATION INC (ROK) stock?
The financial health rating of ROCKWELL AUTOMATION INC (ROK) is 7 / 10.
How sustainable is the dividend of ROCKWELL AUTOMATION INC (ROK) stock?
The dividend rating of ROCKWELL AUTOMATION INC (ROK) is 6 / 10 and the dividend payout ratio is 68.17%.