ROK

Don't Buy Rockwell Automation (ROK) Before Checking Its Fundamentals!

Rockwell Automation moved 1.0% this afternoon session, trading between a high of $285.18 and a low of $279.3 per share. Yesterday the stock finished at $281.36 per share, compared to an average analyst target price of $317.53.

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The large-cap industrial machinery/components company is based in the United States, and over the last twelve months it has returned a dividend yield of 1.7%. Rockwell Automation has trailing twelve months earnings per share (EPS) of 12.24, which at today's prices amounts to a price to earnings (P/E) ratio of 23.2.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 1.47. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2022-11-08 7,760,400 -4,658,400 40 -2.44
2021-11-09 6,997,400 -4,099,700 41 0.0
2020-11-10 6,329,800 -3,734,600 41 -4.65
2019-11-12 6,694,800 -3,794,700 43 0.0
2018-11-09 6,666,000 -3,781,100 43 2.38
2017-11-15 6,311,300 -3,687,100 42

At 41.7%, Rockwell Automation's average gross margins are wider than the 34.2% average of its industry peer group, which suggests that the firm might have a competitive advantage.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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