Now trading at a price of $255.59, Rockwell Automation has moved -2.4% so far today.
Rockwell Automation returned losses of -8.2% last year, with its stock price reaching a high of $312.76 and a low of $242.81. Over the same period, the stock underperformed the S&P 500 index by -31.2%. AThe company's 50-day average price was $266.07. Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Based in Milwaukee, WI, the Large-Cap Industrials company has 29,000 full time employees. Rockwell Automation has offered a 1.9% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 34.68%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $6,666 | $6,695 | $6,330 | $6,997 | $7,760 | $9,058 |
| Gross Margins | 43% | 43% | 41% | 41% | 40% | 41% |
| Net Margins | 8% | 10% | 16% | 19% | 12% | 15% |
| Net Income (M) | $536 | $696 | $1,023 | $1,358 | $932 | $1,387 |
| Net Interest Expense (M) | $73 | $98 | $104 | $95 | $123 | $135 |
| Depreciation & Amort. (M) | $136 | $126 | $122 | $124 | $127 | $134 |
| Diluted Shares (M) | 122 | 117 | 117 | 117 | 116 | 115 |
| Earnings Per Share | $4.21 | $5.83 | $8.77 | $11.58 | $7.97 | $11.95 |
| EPS Growth | n/a | 38.48% | 50.43% | 32.04% | -31.17% | 49.94% |
| Avg. Price | $161.2 | $158.75 | $201.61 | $281.73 | $248.77 | $255.39 |
| P/E Ratio | 37.75 | 27.0 | 22.83 | 24.1 | 31.02 | 21.23 |
| Free Cash Flow (M) | $1,174 | $1,049 | $1,007 | $1,141 | $682 | $1,214 |
| CAPEX (M) | $126 | $133 | $114 | $120 | $141 | $160 |
| EV / EBITDA | 13.66 | 19.45 | 19.6 | 21.88 | 26.32 | 18.2 |
| Total Debt (M) | $1,225 | $2,557 | $1,975 | $3,974 | $3,477 | $2,872 |
| Net Debt / EBITDA | 0.4 | 1.59 | 0.99 | 2.08 | 2.51 | 1.4 |
| Current Ratio | 1.21 | 1.45 | 1.34 | 1.07 | 1.03 | 1.25 |
Rockwell Automation benefits from growing revenues and increasing reinvestment in the business, wider gross margins than its peer group, and a strong EPS growth trend. The company's financial statements show generally positive cash flows and healthy leverage levels. Furthermore, Rockwell Automation has just enough current assets to cover current liabilities, as shown by its current ratio of 1.25.
Rockwell Automation's Valuation Is in Line With Its Sector Averages:
Rockwell Automation has a trailing twelve month P/E ratio of 30.2, compared to an average of 25.19 for the Industrials sector. Based on its EPS guidance of $10.79, the company has a forward P/E ratio of 24.7. Rockwell Automation's PEG ratio is 2.65 on the basis of the 11.4% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Rockwell Automation is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.72 is higher than the sector average of 3.17. The company's shares are currently trading 178.5% below their Graham number. Ultimately, Rockwell Automation's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Analysts Give Rockwell Automation an Average Rating of Hold:
The 21 analysts following Rockwell Automation have set target prices ranging from $215.0 to $320.0 per share, for an average of $270.4 with a hold rating. The company is trading -5.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Rockwell Automation has an average amount of shares sold short because 2.7% of the company's shares are sold short. Institutions own 85.0% of the company's shares, and the insider ownership rate stands at 0.22%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $3,579,196,986.
