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Rotork plc (GB:ROR)
LSE:ROR
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Rotork plc (ROR) AI Stock Analysis

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GB:ROR

Rotork plc

(LSE:ROR)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
349.00p
▲(5.63% Upside)
Rotork plc's strong financial performance is the most significant factor, showcasing solid revenue and cash flow growth with low leverage. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation with a high P/E ratio. These factors collectively result in a moderate overall stock score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Rotork's products and services, supporting long-term business expansion and market presence.
Cash Flow Management
Effective cash flow management enhances Rotork's ability to invest in growth opportunities and maintain financial stability, crucial for sustaining operations.
Balance Sheet Health
A strong balance sheet with minimal leverage provides Rotork with financial flexibility and resilience against economic uncertainties, supporting long-term growth.
Negative Factors
Net Profit Margin Decline
A declining net profit margin may indicate rising costs or pricing pressures, potentially impacting profitability and financial performance over time.
Earnings Per Share Decline
A decline in EPS growth can signal challenges in profit generation, affecting investor confidence and the company's ability to reinvest in growth initiatives.
Net Profit Margin Pressure
Pressure on net profit margins could limit Rotork's ability to maintain profitability levels, affecting its capacity to fund future growth and investments.

Rotork plc (ROR) vs. iShares MSCI United Kingdom ETF (EWC)

Rotork plc Business Overview & Revenue Model

Company DescriptionRotork plc is a leading global provider of flow control and regulation equipment, specializing in the design, manufacture, and supply of electric, pneumatic, and hydraulic actuators, along with related products and services. The company operates across key sectors, including oil and gas, water and wastewater, power generation, and industrial applications, offering solutions that enhance the efficiency and reliability of processes involving fluids and gases.
How the Company Makes MoneyRotork generates revenue primarily through the sale of its actuators and valve control systems, which are essential in managing the flow of fluids in various industries. The company has several key revenue streams, including the sale of new products, aftermarket services such as maintenance, repair, and spare parts, and system integration services. Significant partnerships with major industrial players and a strong presence in emerging markets contribute to its earnings. Additionally, Rotork benefits from a diverse customer base, which helps mitigate risks associated with economic fluctuations in specific sectors.

Rotork plc Financial Statement Overview

Summary
Rotork plc exhibits a strong financial position with consistent revenue and cash flow growth, low leverage, and effective use of equity. Despite a slight decrease in net profit margin, overall profitability and cash flow metrics remain solid, supporting future growth prospects.
Income Statement
78
Positive
Rotork plc has demonstrated solid revenue growth with a 4.9% increase from 2023 to 2024. The gross profit margin stands at 49.3%, indicating strong production efficiency. However, the net profit margin decreased slightly to 13.7% due to a reduction in EBIT. The EBITDA margin remains robust at 21.6%.
Balance Sheet
82
Very Positive
The company maintains a healthy balance sheet with a low Debt-to-Equity ratio of 0.04, showcasing minimal leverage. The equity ratio is strong at 76.3%, indicating a stable asset base primarily funded by equity. Return on equity is 17.4%, suggesting effective utilization of shareholder funds.
Cash Flow
83
Very Positive
Rotork plc shows strong cash flow management with a 13.9% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.44, highlighting strong cash generation relative to earnings. Free cash flow to net income ratio is also favorable at 1.24.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue760.29M754.43M719.15M641.81M569.16M604.54M
Gross Profit380.25M371.93M339.10M291.73M262.77M284.31M
EBITDA167.22M163.21M169.94M148.67M133.48M144.76M
Net Income99.58M103.58M113.14M93.24M80.25M85.76M
Balance Sheet
Total Assets746.30M780.49M773.78M735.73M676.15M753.84M
Cash, Cash Equivalents and Short-Term Investments67.10M149.98M146.37M114.77M123.47M187.20M
Total Debt23.80M24.65M11.96M8.84M9.34M9.15M
Total Liabilities177.10M181.98M151.49M145.83M142.07M183.09M
Stockholders Equity566.90M595.78M620.59M588.48M534.08M570.75M
Cash Flow
Free Cash Flow121.52M128.83M113.09M46.55M65.27M111.12M
Operating Cash Flow135.22M148.77M124.89M59.45M85.42M127.88M
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 Technical Analysis

Technical Analysis Sentiment
Negative
Last Price330.40
Price Trends
50DMA
341.99
Negative
100DMA
331.21
Negative
200DMA
320.91
Positive
Market Momentum
MACD
-1.80
Positive
RSI
37.25
Neutral
STOCH
26.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ROR, the sentiment is Negative. The current price of 330.4 is below the 20-day moving average (MA) of 338.99, below the 50-day MA of 341.99, and above the 200-day MA of 320.91, indicating a neutral trend. The MACD of -1.80 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 26.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ROR.

Rotork plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£7.68B27.6112.85%1.96%-6.93%18.57%
75
Outperform
£5.64B24.4623.79%1.40%-0.32%-3.96%
71
Outperform
£5.02B30.8714.19%2.44%0.10%-15.33%
70
Outperform
£7.32B23.9117.68%1.26%-1.97%40.55%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
£2.77B28.3716.97%1.98%1.93%-15.07%
57
Neutral
£7.78B25.1010.69%1.07%-0.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ROR
Rotork plc
330.40
15.34
4.87%
GB:IMI
IMI plc
2,260.00
476.83
26.74%
GB:MRO
Melrose
596.80
160.34
36.74%
GB:SMIN
Smiths Group plc
2,406.00
806.75
50.45%
GB:SPX
Spirax Sarco Engineering
6,840.00
212.38
3.20%
GB:WEIR
Weir Group plc (The)
2,786.00
663.08
31.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 18, 2025