Rotork plc (ROR) AI Stock Analysis

• Market Cap: £2.69B
• Dividend Yield: 2.36%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.09
• Revenue Growth: 4.91%
• EPS Growth: -7.75%
• Country: UK
• Employees: 3,493
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 0.09
• Shares Outstanding: 841,519,170
• 10 Day Avg. Volume: 2,861,814
• 30 Day Avg. Volume: 2,147,100
• PEG Ratio: 3.02
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.87
• 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: £388.57
• Price Target Upside: 19.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: 351.00p ▲(7.54%Upside)

Rotork plc has a strong financial foundation with robust revenue and cash flow growth and low leverage, which significantly supports its stock performance. Technical indicators show positive momentum, although the valuation suggests moderate pricing with a fair dividend yield. The absence of recent earnings call data or corporate events results in a neutral impact on the overall score.

Positive Factors

Financial Performance

Rotork's FY24 Prelims were better than expected and momentum at the back end of the year was very strong.

Market Performance

Shares are expected to trend better, indicating a favorable market reaction.

Strategic Initiatives

The acquisition of Noah Actuation and the £50m share buyback show positive intent.

Negative Factors

Currency Impact

Rotork remains one of the most preferred UK Industrials, with progress being made despite potential EBITA drift due to FX.

Rotork plc Business Overview & Revenue Model

Company Description

Rotork plc designs, manufactures, and markets flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical, process, and industrial markets. It operates through three segments: Oils & Gas; Water & Power; and Chemical, Process & Industrial segments. The company offers electric, fluid power, and process control actuators. It also provides gearboxes and valve accessories comprising multi-turn and quarter-turn gearboxes, smart position indicators, direct mount chain wheels, valve accessories, roto hammers, and master gear products. In addition, the company offers instrumentation and control products, such as instrument valves, controllers, and measurement products; and pneumatic valves and manifolds, which include air preparation equipment, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. Further, it provides master station, foundation fieldbus, modbus, profibus, devicenet, HART, ethernet, and control network legacy products; and actuator workshop overhaul, field support, planned shutdown support, technical support, and training services. The company operates in the United Kingdom, Italy, rest of Europe, the United States, rest of the Americas, China, and internationally. The company was incorporated in 1957 and is headquartered in Bath, the United Kingdom.

How the Company Makes Money

Rotork plc generates revenue primarily through the sale of its flow control equipment, including electric, pneumatic, and hydraulic actuators, as well as gearboxes and accessories. The company's key revenue streams include the production of actuators for controlling valves and dampers in industrial applications, providing ongoing maintenance and support services, and offering spare parts and retrofitting solutions. Rotork's earnings are bolstered by its global distribution network and strategic partnerships with original equipment manufacturers (OEMs) and end-users across diverse industries. The company's focus on innovation and quality ensures a competitive edge, allowing it to capture a significant share of the market for flow control solutions.

Rotork plc Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
745.89M	719.15M	641.81M	569.16M	604.54M	669.34M
	Gross Profit
361.18M	339.10M	291.73M	262.77M	284.31M	311.63M
	EBIT
170.02M	148.77M	137.27M	112.34M	119.02M	133.77M
	EBITDA
192.44M	169.94M	148.67M	133.48M	144.76M	165.25M
	Net Income Common Stockholders
119.16M	113.14M	93.24M	80.25M	85.76M	94.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.37M	146.37M	114.77M	123.47M	187.20M	117.61M
	Total Assets
773.78M	773.78M	735.73M	676.15M	753.84M	724.79M
	Total Debt
11.96M	11.96M	8.84M	9.34M	9.15M	11.54M
	Net Debt
-134.41M	-134.41M	-105.93M	-114.14M	-178.05M	-106.07M
	Total Liabilities
151.49M	151.49M	145.83M	142.07M	183.09M	185.39M
	Stockholders Equity
620.59M	620.59M	588.48M	534.08M	570.75M	539.40M
Cash Flow		Free Cash Flow
130.86M	113.09M	46.55M	65.27M	111.12M	133.99M
	Operating Cash Flow
143.98M	124.89M	59.45M	85.42M	127.88M	153.23M
	Investing Cash Flow
-30.17M	-23.46M	-6.84M	-12.24M	-15.84M	-21.65M
	Financing Cash Flow
-85.17M	-64.85M	-62.39M	-136.61M	-40.50M	-120.76M

Rotork plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 326.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ROR, the sentiment is Positive. The current price of 326.4 is above the 20-day moving average (MA) of 315.37, above the 50-day MA of 304.22, and above the 200-day MA of 315.47, indicating a bullish trend. The MACD of 5.16 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ROR.

Rotork plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	79 Outperform	£5.08B	21.20	23.50%	1.53%	0.64%	4.92%
SMIN	75 Outperform	£7.38B	25.03	13.99%	2.00%	6.10%	33.05%
WEIR	75 Outperform	£6.41B	20.55	17.83%	1.63%	-4.95%	36.95%
ROR	74 Outperform	£2.69B	26.50	17.03%	2.36%	4.91%	-7.75%
SPX	72 Outperform	£4.23B	22.16	16.16%	2.87%	-1.03%	4.06%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
MRO	56 Neutral	£5.96B	―	-1.53%	1.24%	3.52%	-24.01%