Rotork plc (76ID) AI Stock Analysis

• Market Cap: £2.91B
• Dividend Yield: 7.92%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 3,493
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 40,073
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -1.29
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 7.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 135.00p ▲(12.50% Upside)

The score is driven primarily by strong financial performance—especially the very low leverage and solid profitability—partly offset by recent net margin and free cash flow softness. Technical indicators are a headwind due to an extremely overbought RSI and otherwise flat trend signals, while the very high dividend yield provides additional support on valuation.

Positive Factors

Revenue Growth

Consistent revenue growth of 14.4% in 2024 indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio of 0.041 suggests financial stability and low risk, providing flexibility for future investments and growth.

Profitability Margins

High gross and net profit margins reflect efficient operations and pricing power, contributing to sustainable long-term profitability.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth by 1.55% may limit the company's ability to reinvest in business operations and manage unexpected expenses.

EBIT and EBITDA Margin Decline

Decreasing EBIT and EBITDA margins suggest rising costs, which could erode profitability if not managed effectively over time.

Free Cash Flow Management

While cash management is effective, the decline in free cash flow growth could challenge future strategic initiatives and financial flexibility.

Rotork plc Business Overview & Revenue Model

Company Description

Rotork PLC is a U.K.-based company that designs and manufactures actuators and other industrial components for various markets. The company's operating segments include oil and gas; water and power; and chemical, process, and industrial. Nearly half of Rotork’s revenue is derived from its oil and gas segment. The company's product categories consist of electric, process control, and fluid actuators, gearboxes and valve accessories, and pneumatic valves.

How the Company Makes Money

Rotork generates revenue through the sale of its core products, including a diverse array of actuators and control systems, which are essential for the automation of valves and other flow control equipment. The company's revenue model includes direct sales to customers, as well as sales through a network of distributors and partners. Key revenue streams come from both new equipment sales and aftermarket services, which include maintenance, repair, and replacement parts. Additionally, Rotork benefits from long-term contracts and partnerships with major players in the energy and utilities sectors, which provide a stable income base. The company's focus on innovation and R&D also enables it to develop new technologies, potentially leading to new revenue opportunities in emerging markets.

Rotork plc Financial Statement Overview

Summary

High-quality fundamentals: revenue rebounded strongly with 2024 growth (~14% vs. 2023), and profitability remains healthy with strong gross margin (~49%). The balance sheet is exceptionally conservative (debt-to-equity ~0.04) with steady, strong ROE (~15–18%). Offsets include a 2024 net margin step-down (~13.7% from ~15.7%) and weaker free cash flow growth vs. 2023 with uneven cash conversion history.

Income Statement

Revenue has rebounded strongly since the 2020–2021 declines, reaching 754.4M in 2024 (up ~14% vs. 2023) and showing solid multi-year momentum. Profitability is consistently healthy for the sector with gross margin improving to ~49% in 2024, though net margin fell to ~13.7% from ~15.7% in 2023, indicating some recent cost/expense pressure despite growth.

Balance Sheet

The balance sheet is very conservative, with extremely low leverage (debt-to-equity ~0.04 in 2024) and sizable equity (595.8M) supporting 780.5M of assets. Returns on equity remain strong and fairly steady (~15–18% across years), though equity has drifted down from 2023 to 2024, which is worth monitoring even with low debt risk.

Cash Flow

Cash generation is solid: operating cash flow was 148.8M in 2024 and free cash flow was 128.8M, with free cash flow covering most of net income (~0.87x). However, free cash flow growth turned negative in 2024 (down vs. 2023), and cash conversion has been uneven historically (notably weaker in 2022), suggesting periodic working-capital or timing swings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	760.29M	754.43M	719.15M	641.81M	569.16M	604.54M
Gross Profit	377.23M	371.93M	339.10M	291.73M	262.77M	284.31M
EBITDA	168.66M	163.21M	169.94M	148.67M	133.48M	144.76M
Net Income	99.58M	103.58M	113.14M	93.24M	80.25M	85.76M
Balance Sheet
Total Assets	746.30M	780.49M	773.78M	735.73M	676.15M	753.84M
Cash, Cash Equivalents and Short-Term Investments	67.10M	149.98M	146.37M	114.77M	123.47M	187.20M
Total Debt	23.80M	24.65M	11.96M	8.84M	9.34M	9.15M
Total Liabilities	177.10M	181.98M	151.49M	145.83M	142.07M	183.09M
Stockholders Equity	566.90M	595.78M	620.59M	588.48M	534.08M	570.75M
Cash Flow
Free Cash Flow	122.12M	128.83M	113.09M	46.55M	65.27M	111.12M
Operating Cash Flow	135.82M	148.77M	124.89M	59.45M	85.42M	127.88M
Investing Cash Flow	-48.37M	-12.95M	-23.46M	-6.84M	-12.24M	-15.84M
Financing Cash Flow	-141.56M	-129.47M	-64.85M	-62.39M	-136.61M	-40.50M

Rotork plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£6.80B	29.51	23.79%	1.29%	-0.32%	-3.96%
WEIR	75 Outperform	£8.31B	27.14	17.68%	1.26%	-1.97%	40.55%
76ID	74 Outperform	£2.91B	―	―	7.92%	―	―
GDWN	73 Outperform	£1.88B	47.54	35.23%	1.01%	24.42%	103.25%
SPX	72 Outperform	£5.35B	32.91	14.19%	2.46%	0.10%	-15.33%
SMIN	66 Neutral	£7.88B	29.29	12.85%	1.93%	-6.93%	18.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%