Rotork plc (76ID) AI Stock Analysis

• Market Cap: £2.52B
• Dividend Yield: 7.92%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 8.7
• 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: 0.52
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 8.63
• 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: 78 Outperform
• Price Target: 137.00 p ▲(14.17% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strong financial quality (high margins, strong ROE, low leverage) and attractive valuation (low P/E and high dividend yield). This is partially offset by weak/unclear technical signals, including an extreme RSI reading and limited trend confirmation from moving averages and MACD.

Positive Factors

Profitability

Rotork's persistently high gross margins (~45–49%) and improving EBIT margin (~24% in 2025) indicate durable cost advantage and pricing power in engineered flow-control. Strong margins support reinvestment, dividend capacity and resilience to input-cost swings across industrial cycles.

Conservative balance sheet

Very low leverage and a sizable equity base give Rotork long-term financial flexibility to fund capex, R&D and acquisitions without stressing interest coverage. A conservative balance sheet reduces refinancing risk through downturns and supports stable capital allocation.

Aftermarket recurring revenue

A substantial aftermarket business generates recurring, higher-frequency revenue tied to a large installed base. Aftermarket services are typically higher margin and create customer stickiness, smoothing cyclicality from new project slumps and supporting long-term cash generation.

Negative Factors

Volatile cash conversion

Free cash flow has tracked net income but with notable volatility; weaker operating cash in some years and a softer 2025 reduce predictability of internal funding. Inconsistent cash conversion can constrain investments, dividends, or opportunistic M&A during stress periods.

Uneven revenue trajectory

Revenue growth has been lumpy across cycles, with prior declines and only modest recoveries. Uneven top-line performance limits steady operating leverage and complicates multi-year planning for capacity and R&D, making margin sustainability more contingent on project timing.

Exposure to industrial capex cycles

Material exposure to capital expenditure cycles in oil & gas, power, water and process industries means new-equipment demand can fall sharply in downturns. While aftermarket helps, prolonged weak capex would reduce high-margin new equipment sales and slow revenue expansion.

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 primarily makes money by selling flow-control and actuation products and by providing aftermarket services over the installed life of that equipment. Key revenue streams include: (1) New equipment sales: revenue from the manufacture and sale of actuators (electric, pneumatic, hydraulic) and related control/monitoring products used by original equipment manufacturers, engineering/procurement/construction (EPC) firms, and end users for new builds, upgrades, or automation projects. (2) Aftermarket revenue: recurring and higher-frequency revenue from spares, replacement parts, repairs, maintenance services, field service support, and retrofit/upgrade work for the large installed base of Rotork equipment operating in customer facilities. (3) Project- and order-driven demand tied to industrial capex: earnings are influenced by investment cycles in industries such as energy, water, and process manufacturing; large projects can drive significant order intake, while ongoing operations support demand for maintenance and spares. (4) Channel and customer coverage: revenue is generated through a combination of direct sales/service organizations and distribution/representative networks that extend reach into local markets and enable service responsiveness. Specific significant partnerships are null.

Rotork plc Financial Statement Overview

Summary

High-quality fundamentals: strong and improving profitability (gross margin ~45–49%, EBIT margin rising to ~24%), consistently attractive ROE (~15–20%), and very low leverage (debt-to-equity well below 0.10). The main constraint is uneven revenue trajectory over longer periods and variable cash conversion/free-cash-flow growth, including softer cash flow in 2025.

Income Statement

Rotork shows strong and improving profitability with gross margin consistently ~45–49% and EBIT margin rising to ~24% in 2025. Net margin remains healthy (~14–16%) and earnings are solid versus revenue scale. Revenue growth is positive overall (up from 2022–2025), but the top-line trajectory is somewhat uneven over the longer period (declines in 2020–2021 and modest growth in 2024), which slightly tempers the score.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage (debt-to-equity staying well below 0.10 across periods) and a large equity base relative to assets. Returns on equity are consistently strong (~15–20%), indicating efficient capital use. The main watch item is that debt increased in 2025 versus prior years (though still low in absolute terms), and equity is slightly below the 2023 peak.

Cash Flow

Cash generation is generally solid, with free cash flow closely tracking net income (roughly ~0.76–0.93x), supporting earnings quality. However, cash conversion is not consistently strong year-to-year: operating cash flow covered net income well in some years (e.g., 2020 and 2024), but was notably weaker in 2022 and again softer in 2025. Free cash flow growth is also volatile, including declines in 2021–2022 and a modest drop in 2025.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	777.30M	754.43M	719.15M	641.81M	569.16M
Gross Profit	382.70M	371.93M	339.10M	291.73M	262.77M
EBITDA	206.20M	163.21M	169.94M	148.67M	133.48M
Net Income	115.40M	103.58M	113.14M	93.24M	80.25M
Balance Sheet
Total Assets	813.80M	780.49M	773.78M	735.73M	676.15M
Cash, Cash Equivalents and Short-Term Investments	110.00M	149.98M	146.37M	114.77M	123.47M
Total Debt	44.70M	24.65M	11.96M	8.84M	9.34M
Total Liabilities	229.40M	181.98M	151.49M	145.83M	142.07M
Stockholders Equity	581.60M	595.78M	620.59M	588.48M	534.08M
Cash Flow
Free Cash Flow	116.20M	128.83M	113.09M	46.55M	65.27M
Operating Cash Flow	125.60M	148.77M	124.89M	59.45M	85.42M
Investing Cash Flow	-44.90M	-12.95M	-23.46M	-6.84M	-12.24M
Financing Cash Flow	-118.70M	-129.47M	-64.85M	-62.39M	-136.61M

Rotork plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
76ID	78 Outperform	£2.52B	8.69	20.10%	7.92%	―	―
IMI	74 Outperform	£6.59B	20.02	24.91%	1.29%	-0.32%	-3.96%
GDWN	71 Outperform	£1.85B	15.43	33.12%	1.01%	24.42%	103.25%
SMIN	66 Neutral	£7.42B	29.17	13.46%	1.93%	-6.93%	18.57%
WEIR	64 Neutral	£7.37B	29.74	13.42%	1.26%	-1.97%	40.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPX	61 Neutral	£4.94B	30.76	13.88%	2.46%	0.10%	-15.33%