Rockwell Automation, Inc (NYSE: ROK)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001024478
Market Cap 43.80 Bn
P/B 11.69
P/E 44.24
P/S 5.11
ROIC (Qtr) 14.45
Div Yield % 1.37
Rev 1y % (Qtr) 11.91
Total Debt (Qtr) 3.68 Bn
Debt/Equity (Qtr) 0.98
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About

Rockwell Automation, Inc., also known as ROK, is a prominent player in the industrial automation and digital transformation sector. The company, which has its roots in the Allen-Bradley Company established in 1903, has grown to become a global powerhouse, with its headquarters situated in Milwaukee, Wisconsin. Rockwell Automation's operations span across more than 100 countries worldwide, with significant sales recorded in China, Canada, Italy, Mexico, the United Kingdom, and Germany. Its revenue is generated through three primary segments: Intelligent...

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Investment thesis

Bull case

  • Operating cash flow of 1.41B provides strong 17.04x coverage of stock compensation 83M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.24B exceeds capital expenditure of 179M by 6.90x, indicating strong organic growth funding capability.
  • Tangible assets of 6.60B provide exceptional 10.70x coverage of deferred revenue 617M, showing strong service capability backing.
  • Retained earnings of 5.57B provide full 1.95x coverage of long-term debt 2.86B, indicating strong internal capital position.
  • Robust tangible asset base of 6.60B provides 12.30x coverage of working capital 537M, indicating strong operational backing.

Bear case

  • Operating cash flow of 1.41B barely covers its investment activities of (202M), with a coverage ratio of -7, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.41B provides thin coverage of dividend payments of (598M) with a -2.36 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (202M) provide weak support for R&D spending of 851M, which is -0.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 1.24B represents just -4.57x of debt issuance (270M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 1.41B shows concerning coverage of minority interest expenses of (117M), which is -12.09x, suggesting complex corporate structure risks.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.18 2.28
EV to Cash from Ops. EV/CFO 33.16 37.14
EV to Debt EV to Debt 12.73 34.39
EV to EBIT EV/EBIT 35.74 27.71
EV to EBITDA EV/EBITDA 30.83 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 37.97 133.36
EV to Market Cap EV to Market Cap 1.07 1.04
EV to Revenue EV/Rev 5.47 39.88
Price to Book Value [P/B] P/B 11.69 6.22
Price to Earnings [P/E] P/E 44.24 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.66 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 60.50 15.73
Dividend per Basic Share Div per Share (Qtr) 5.31 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 48.29 82.53
Interest Coverage Int. cover (Qtr) 8.81 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 21.49 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.73 118.48
Dividend Growth (1y) % Div 1y % (Qtr) 4.94 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 5.27 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.04 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 7.36 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 9.51 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 8.80 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) 27.71 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.56 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.76 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.38 0.10
Cash Ratio Cash Ratio (Qtr) 0.13 3.01
Current Ratio Curr Ratio (Qtr) 1.16 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.98 0.38
Interest Cover Ratio Int Coverage (Qtr) 8.81 12.34
Times Interest Earned Times Interest Earned (Qtr) 8.81 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.10 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 15.32 -7,413.30
EBT Margin % EBT Margin % (Qtr) 13.58 -9,015.79
Gross Margin % Gross Margin % (Qtr) 50.30 -32.61
Net Profit Margin % Net Margin % (Qtr) 11.60 -7,962.06