Rockwell Story

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ROK -- USA Stock  

USD 256.43  0.38  0.15%

It looks like Parker Hannifin will be up for a correction way faster as its share price whent up 6.41% today to Rockwell Automation's 2.1248%. While many traders are getting carried away by overanalyzing competition within industrials space, it is quite reasonable to examine both, Rockwell Automation and Parker Hannifin as potential short-horizon investments. We are going to concentrate on some of the competitive aspects of both Rockwell and Parker.
Published over two weeks ago
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Is Rockwell riskier than Parker Hannifin (NYSE:PH)?
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 162.01 percent. This signifies that the company is making $1.62 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.

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.

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

Let me now go over Rockwell Automation revenue. Based on the latest financial disclosure, Rockwell Automation reported 6.49 B of revenue. This is 85.5% 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 31.21% higher than that of Rockwell Automation. As for Parker Hannifin we see revenue of 13.7 B, which is much higher than that of the Specialty Industrial Machinery

Rockwell6.49 Billion
Sector0.0
Parker13.7 Billion
6.5 B
Rockwell
Sector
13.7 B
Parker

Our perspective of the recent Rockwell Automation surge

Rockwell Automation recent semi deviation hikes over 1.7. As of the 10th of November, Rockwell Automation holds the Semi Deviation of 1.7, coefficient of variation of 916.32, and Risk Adjusted Performance of 0.1298. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rockwell Automation, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We are able to interpolate and break down nineteen technical drivers for Rockwell Automation, which can be compared to its competitors. Please check Rockwell Automation variance, as well as the relationship between the value at risk and skewness to decide if Rockwell Automation is priced some-what accurately, providing market reflects its current price of 254.74 per share. Given that Rockwell Automation has jensen alpha of 0.1855, we recommend you to check out Rockwell Automation's recent market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Rockwell Automation

Although many other 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. In closing, as of the 10th of November 2020, our analysis shows that Rockwell Automation moves indifferently to market moves. The firm is overvalued and projects low odds of financial turmoil for the next 2 years. Our up-to-date 30 days buy-hold-sell recommendation on the firm is Cautious Hold.

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 Vlad Skutelnik 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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