ROKROK
US • —
$495.12
P/E
51.34
PEG
2.46
FCF Yield
—
Rev Growth YoY
+10.5% YoY
Gross Margin
52.5%
Health Score
7/10
D/E Ratio
0.88
Confidence
MEDIUM
Business Snapshot
Rockwell Automation is a leading provider of industrial automation and digital transformation solutions, generating revenue primarily from its intelligent devices, software and control, and lifecycle services segments. It operates in the global industrial automation market, where it holds a strong competitive position as a long-established tier-one supplier to manufacturers across discrete and hybrid industries. The company has a market cap that places it in the large-cap tier, providing a significant financial scale for continued operations and investment. A defining characteristic of Rockwell Automation is its deep integration into customer production environments, creating high switching costs and long-term recurring service revenue streams.
Financial Health
Gross margin of 52.5% indicates solid pricing power and product-level profitability, though a prior-year comparison is not available for trending. Net margin of 12.4% shows the company retains a reasonable portion of revenue as profit after all expenses...
Risk Assessment
- VALUATION — P/E of 51.34x is more than double the sector average of 22x, implying high expectations for future growth.
- EARNINGS QUALITY — Out of 4 recent quarters, the company beat estimates in all 4, which is a positive signal for guidance credibility, not a risk.
- DEBT / LIQUIDITY — Current ratio of 1.14x is adequate but relatively low, potentially limiting near-term financial flexibility.
- INSIDER ACTIVITY — Insiders have net sold 4 times with zero buys in the last 90 days, a cautious signal about their view of the current share price.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin of 52.5% indicates solid pricing power and product-level profitability, though a prior-year comparison is not available for trending. Net margin of 12.4% shows the company retains a reasonable portion of revenue as profit after all expenses. The balance sheet is healthy with a debt/equity ratio of 0.88x, indicating a moderate use of leverage, and a current ratio of 1.14x, suggesting adequate short-term liquidity to meet obligations. Free cash flow data is not available, preventing a direct assessment of cash generation or capital allocation capacity. Overall financial health is sound, supported by strong margins and manageable debt, which supports ongoing reinvestment and dividend capacity.
- VALUATION — P/E of 51.34x is more than double the sector average of 22x, implying high expectations for future growth. - EARNINGS QUALITY — Out of 4 recent quarters, the company beat estimates in all 4, which is a positive signal for guidance credibility, not a risk. - DEBT / LIQUIDITY — Current ratio of 1.14x is adequate but relatively low, potentially limiting near-term financial flexibility. - INSIDER ACTIVITY — Insiders have net sold 4 times with zero buys in the last 90 days, a cautious signal about their view of the current share price. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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