Rockwell Story

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ROK -- USA Stock  

USD 215.67  1.70  0.78%

As many millenniums are excited about industrials space, it is only fair to examine Rockwell Automation. What exactly are Rockwell Automation shareholders getting in August? Is the stock valuation justified? I am going to cover Rockwell Automation perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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The company has 2.39 B in debt with debt to equity (D/E) ratio of 2.55, meaning that Rockwell Automation heavily relies on borrowing funds for operations. Rockwell Automation has 2.39 B in debt with debt to equity (D/E) ratio of 2.55, meaning that the entity heavily relies on borrowing funds for operations. The entity has a current ratio of 1.54, which is typical for the industry and considered as normal. Macroaxis provides advice on Rockwell Automation to complement and cross-verify current analyst consensus on Rockwell Automation. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of Rockwell Automation using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Rockwell Automation based exclusively on its fundamental and basic technical indicators. By analyzing Rockwell Automation's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Rockwell Automation's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rockwell Automation. We calculate exposure to Rockwell Automation's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Rockwell Automation's related companies.

Rockwell Automation Investment Alerts

Rockwell investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Rockwell Automation performance across your portfolios.Please check all investment alerts for Rockwell

Rockwell Automation Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Rockwell value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Rockwell Automation competition to find correlations between indicators driving the intrinsic value of Rockwell.

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

Another Outlook On Rockwell Automation

The firm reported the last year's revenue of 6.76 B. Total Income to common stockholders was 711.7 M with profit before taxes, overhead, and interest of 2.9 B.

Margins Breakdown

Rockwell profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Rockwell Automation itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Rockwell Automation profit margins.
12.91
Profit Margin
16.68
Operating Margin
16.12
EBITDA Margin
Operating Margin16.68
EBITDA Margin16.12
Gross Margin37.99
Profit Margin12.91


Rockwell Automation Net Income Per Employee is fairly stable at the moment. Rockwell Automation Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Rockwell Automation Earnings Before Interest Taxes and Depreciation Amortization USD was 974,607,895. Additionally, Rockwell Automation Average Assets is fairly stable at the moment. Rockwell Automation Net Income Per Employee is fairly stable at the moment. Rockwell Automation Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Additionally, Rockwell Automation Average Assets is increasing over the last 8 years. The recent value of Rockwell Automation Average Assets is 5,293,877,632.

Is Rockwell showing sign of lower volatility?

The sortino ratio is down to 0.18 as of today. 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.

The Bottom Line

Although some companies within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, Rockwell Automation may offer a potential longer-term growth to traders. While some traders may not share our view we believe it may be a good time to drop Rockwell as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Rockwell Automation.

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 Ellen Johnson 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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