Strong Price-to-Earnings Ratio
Healthy Price-to-Sales Ratio
Strong Return on Equity
Solid Gross Profit Margin
Satisfactory Current Ratio
Strong Interest Coverage
🏆 Operational Excellence Focus
📈 Strong Order Performance
🌍 Market Position and Adaptability
🚀 Growth in E-commerce and Warehouse Automation
🧠 Innovation and New Projects
High Price-to-Book Ratio
Elevated EV/EBITDA Ratio
Moderate Operating Profit Margin
Net Profit Margin Indicates Pressure
High Debt Levels
Low Cash Ratio
⚠️ Sales Decline in Key Segments
🔄 Currency Headwinds
🌏 Weakness in Asia Pacific
📉 Uncertainty in Macroeconomic Environment
Rockwell Automation demonstrates strong operational focus and solid order performance, but faces challenges in sales and currency impacts. The outlook remains positive with growth in key segments and a strong project pipeline, despite uncertainties in certain regions.
Analysis Date: February 10, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$101.02
Current Market Price: $225.26
IV/P Ratio: 0.45x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-123.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for ROK
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (28.10)
P/B ratio ≤ 1.5 (7.65)
Current ratio ≥ 2.0 (1.08x)
Long-term debt < Net current assets (10.63x)
Margin of safety (-123.0%)
ROK does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
ROK's return on equity (ROE) of 26.80% indicates that the company is effective at generating profits from its equity.
A gross profit margin of 45.34% reflects ROK's ability to maintain profitability at the core operational level.
With an operating profit margin of 17.82%, there is room for improvement in controlling operating expenses.
A net profit margin of 13.29% suggests that after all expenses, ROK is left with a moderate profit, indicating potential pressure.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
26.80%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.68%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
45.34%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
13.29%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A current ratio of 1.08 indicates that ROK can cover its short-term liabilities with its short-term assets.
An interest coverage ratio of 7.75 suggests that ROK can comfortably meet its interest obligations.
With a debt-to-equity ratio of 1.19, ROK is leveraging itself significantly, which could pose risks in adverse economic conditions.
A cash ratio of 0.14 indicates that ROK has limited cash reserves to meet short-term liabilities, which raises liquidity concerns.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.13x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
1.08x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
Rockwell Automation has renewed its focus on operational excellence and cost discipline, which is creating a solid foundation for growth. The company is on track to achieve $250 million in productivity benefits for fiscal 2025.
The company reported a 10% year-over-year increase in orders, with mid-single digit sequential growth across all regions and business segments, indicating solid underlying demand.
Rockwell Automation has a strong US manufacturing footprint which positions it well to navigate the impact of tariffs and changes in the global supply chain, benefiting from policies that promote US manufacturing.
Despite strong order growth, sales decreased by 8.5% year-over-year, driven by a difficult comparison against a sizable product backlog and challenges in the Intelligent Devices segment.
The company faced a negative impact from currency translation, which was a headwind of 1.5 points to reported sales, indicating vulnerability to foreign exchange fluctuations.
The company anticipates strong growth in e-commerce and warehouse automation, projecting high single-digit growth for fiscal 2025 as customer investments accelerate in this area.
Rockwell Automation is seeing a pipeline of multiyear projects across key industries, which include advancements in software and automation technologies, indicating strong future demand.
The company expects Asia Pacific to be the weakest region for fiscal 2025, particularly due to ongoing challenges in China, which is anticipated to impact overall growth.
Macroeconomic and policy uncertainties continue to weigh on customer capital expenditure plans, which could limit growth potential in the near term.