Rockwell Automation, Inc. Fundamental Analysis (NYSE: ROK)
Rockwell Automation, Inc. (NYSE: ROK) shows moderate financial fundamentals with a PE ratio of 32.80, profit margin of 15.67%, and ROE of 39.37%. The company generates $8.9B in annual revenue with weak year-over-year growth of 0.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ROK's fundamental strength across five key dimensions:
Efficiency Score
ExcellentROK demonstrates superior asset utilization.
Valuation Score
ModerateROK shows balanced valuation metrics.
Growth Score
WeakROK faces weak or negative growth trends.
Financial Health Score
ModerateROK shows balanced financial health with some risks.
Profitability Score
ExcellentROK achieves industry-leading margins.
Key Financial Metrics
Is ROK Expensive or Cheap?
P/E Ratio
ROK trades at 32.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ROK's PEG of 0.52 indicates potential undervaluation.
Price to Book
The market values Rockwell Automation, Inc. at 12.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.04 times EBITDA. This signals the market has high growth expectations.
How Well Does ROK Make Money?
Net Profit Margin
For every $100 in sales, Rockwell Automation, Inc. keeps $15.67 as profit after all expenses.
Operating Margin
Core operations generate 21.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.37 in profit for every $100 of shareholder equity.
ROA
Rockwell Automation, Inc. generates $12.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rockwell Automation, Inc. produces operating cash flow of $1.94B, showing steady but balanced cash generation.
Free Cash Flow
Rockwell Automation, Inc. generates strong free cash flow of $1.69B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.17 in free cash annually.
FCF Yield
ROK converts 3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.39
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How ROK Stacks Against Its Sector Peers
| Metric | ROK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.80 | 27.44 | Worse (Expensive) |
| ROE | 39.37% | 1185.00% | Weak |
| Net Margin | 15.67% | -2.00% (disorted) | Strong |
| Debt/Equity | 1.00 | 0.85 | Neutral |
| Current Ratio | 2.11 | 22.12 | Strong Liquidity |
| ROA | 12.50% | -1355419.00% (disorted) | Strong |
ROK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rockwell Automation, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-12.75%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
41.59%
Industry Style: Cyclical, Value, Infrastructure
High Growth