Rockwell Story

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ROK -- USA Stock  

USD 215.67  1.70  0.78%

It looks like Parker Hannifin will be up for a correction faster as its share price went up 2.84% today to Rockwell Automation's 2.93%As many millenniums are excited about industrials space, we are going to shadow both, Rockwell Automation and Parker Hannifin as a potential short-horizon opportunity. We are going to concentrate on some of the competitive aspects of both Rockwell and Parker.
Published over a month ago
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Will Parker Hannifin (NYSE:PH) and Rockwell Automation (NYSE:ROK) deliver in August?
By analyzing existing basic indicators between Rockwell Automation and Parker, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Parker with a short position in Rockwell Automation. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rockwell Automation has an asset utilization ratio of 168.75 percent. This signifies that the company is making $1.69 for each dollar of assets. An increasing asset utilization means that Rockwell Automation is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Rockwell or Parker is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Rockwell Automation dividends

A dividend is the distribution of a portion of Rockwell Automation earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Rockwell Automation dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Rockwell one year expected dividend income is about $2.65 per share.
Rockwell Automation Dividend Yield is decreasing as compared to previous years. The last year's value of Dividend Yield was reported at 0.0276. The current Dividends per Basic Common Share is estimated to increase to 2.82, while Payment of Dividends and Other Cash Distributions is projected to decrease to (469.3 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-434.9 M-469.3 M
Dividend Yield 0.0276  0.0297 
Dividends per Basic Common Share 2.61  2.82 
Investing in dividend-paying stocks, such as Rockwell Automation is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Rockwell Automation must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Rockwell Automation. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Rockwell Automation's Liquidity

Rockwell Automation financial leverage refers to using borrowed capital as a funding source to finance Rockwell Automation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Rockwell Automation financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Rockwell Automation's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Rockwell Automation, but it might be worth checking our own buy vs. sell analysis

Correlation Between Rockwell and Parker Hannifin

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Rockwell Automation together with similar or unrelated positions with a negative correlation. For example, you can also add Parker Hannifin to your portfolio. If Parker Hannifin is not perfectly correlated to Rockwell Automation it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Rockwell Automation for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between ROK and PH for more information.

Note

Are you currently holding both Rockwell Automation and Parker Hannifin in your portfolio? Please note if you are using this as a pair-trade strategy between Rockwell Automation and Parker Hannifin, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Another Outlook On Rockwell Automation

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Rockwell Automation revenue. Based on the latest financial disclosure, Rockwell Automation reported 6.76 B of revenue. This is 93.22% higher than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 28.35% higher than that of Rockwell Automation. As for Parker Hannifin we see revenue of 14.22 B, which is much higher than that of the Specialty Industrial Machinery

Rockwell6.76 Billion
Sector0.0
Parker14.22 Billion
6.8 B
Rockwell
Sector
14.2 B
Parker

Our take on Rockwell Automation small plunge

Recent coefficient of variation is at 442.23. Rockwell Automation has relatively low volatility with skewness of 0.58 and kurtosis of 2.43. However, we advise all investors to independently investigate Rockwell Automation to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Rockwell Automation

Although many other companies under the specialty industrial machinery industry are still a bit expensive, Rockwell Automation may offer a potential longer-term growth to traders. To conclude, as of the 28th of July 2020, our analysis shows that Rockwell Automation slowly supersedes the market. The firm is fairly valued and projects very low chance of bankruptcy for the next 2 years. Our up-to-date 30 days buy-sell recommendation on the firm is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Rockwell Automation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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