Rotork plc (ROR) AI Stock Analysis

• Market Cap: £2.49B
• Dividend Yield: 2.04%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.07
• Revenue Growth: 1.93%
• EPS Growth: -15.07%
• Country: UK
• Employees: 3,493
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 823,358,200
• 10 Day Avg. Volume: 1,135,746
• 30 Day Avg. Volume: 1,234,328
• PEG Ratio: 1.41
• Price to Book (P/B): 4.68
• Price to Sales (P/S): 3.50
• P/FCF Ratio: 23.41
• 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: £400.25
• Price Target Upside: 31.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): £794.43M

• Rating: 67 Neutral
• Price Target: 340.00 p ▲(12.06% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is anchored by strong financial performance (low leverage, solid margins and returns), but is materially weighed down by weak technical momentum (below key moving averages, bearish MACD, very low RSI/Stochastic). Valuation is reasonable but not compelling at a mid-20s P/E, with a modest dividend providing partial offset.

Positive Factors

Balance Sheet Strength

Very low leverage (debt-to-equity <0.08) provides durable financial flexibility to fund capex, aftermarket investment, or opportunistic M&A without stressing interest coverage. This structural balance-sheet strength supports resilience through industry cycles and underpins stable capital allocation policies over months to years.

Margin Sustainability

Sustained high gross margins (~49%) and a meaningful uptick in operating margin indicate durable pricing power and cost control across core actuators and controls. Margins reflect product mix and aftermarket services, supporting steady cash generation and the ability to sustain returns even if top-line growth is modest.

Recurring Aftermarket Revenue

A significant aftermarket business (service, spares, refurbishment) creates recurring, higher-visibility revenue tied to an installed base. This reduces reliance on new project cycles, improves lifetime customer value, and supports recurring cash flows and customer stickiness, aiding revenue stability over multiple quarters.

Negative Factors

Cash Flow Conversion Volatility

Intermittent weak operating cash flow versus reported profits (notably 2022 and 2025) reduces predictability of free cash flow for dividends, reinvestment, or deleveraging. This volatility can constrain long-term planning and raises the risk that earnings quality may not consistently translate into usable cash in downcycles.

Modest Revenue Growth

Low single-digit revenue growth (~3% recent) implies limited organic expansion and reliance on replacement and aftermarket cycles. Over a 2–6 month horizon this structural modest growth caps upside from operational leverage and means returns will rely more on margin improvement and cash deployment than meaningful top-line acceleration.

Incremental Debt Uptick

While leverage remains low, the 2025 increase in debt introduces a new variable to monitor: if capex, working capital or M&A needs persist, further debt could reduce flexibility. In cyclical end markets, even modest additional leverage can amplify downside risk if cash flow volatility reoccurs.

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 makes money primarily by selling flow control and actuation products and by providing aftermarket support over the installed life of that equipment. Key revenue streams include: (1) New equipment sales: revenue from supplying actuators (electric, pneumatic, hydraulic), valve gearboxes, and associated control components used in new projects, plant expansions, and replacement/upgrade cycles. These sales are typically driven by customer capital expenditure in sectors such as water, energy, and industrial processing, and may be sold directly to end users, EPC contractors, OEMs, or through distributors. (2) Aftermarket (service, spares, and repairs): revenue from maintenance services, refurbishment, field service, spare parts, and upgrades for the installed base of Rotork equipment; this stream tends to be recurring in nature because actuators require inspection, parts replacement, and periodic overhaul, and customers often standardize on OEM parts and service to maintain reliability and compliance. (3) Controls/monitoring and digital-enablement add-ons: revenue from control systems, positioners, networks/communication modules, and condition monitoring or related accessories that are bundled with, or retrofitted to, actuators to improve automation, diagnostics, and asset performance. Factors that contribute to earnings include the size of the installed base (supporting aftermarket demand), exposure to regulated infrastructure markets such as water (often more stable), and participation in large project cycles via EPC/OEM channels and regional sales/service networks. Specific material partnership arrangements: null.

Rotork plc Financial Statement Overview

Summary

Strong overall fundamentals supported by very low leverage and robust returns on equity. Profitability is healthy with improving operating margin, but revenue growth is steady rather than high and operating cash flow conversion has been uneven (notably 2022 and 2025), tempering the score.

Income Statement

Rotork shows solid and improving profitability with gross margin holding near ~49% (2024–2025) and operating margin rising meaningfully in 2025 versus 2024. Revenue growth has been positive in recent years (2022–2025), though 2025 growth is modest, pointing to a steady but not high-growth profile. Net margin remains healthy (~14–16%), but earnings have shown some variability year-to-year, which slightly tempers the score.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt-to-equity below 0.08 even in 2025), providing strong financial flexibility. Returns on equity are consistently robust (mid-teens to ~20%), indicating effective use of shareholder capital. The main watch item is that debt increased in 2025 versus prior years, though it remains low in absolute and relative terms.

Cash Flow

Cash generation is generally sound with free cash flow closely tracking net income (roughly ~0.76–0.93x across 2020–2025), supporting earnings quality. However, cash flow conversion has been uneven: operating cash flow was notably weak relative to profits in 2022 and again in 2025, and free cash flow declined in 2025 after growth in 2023–2024. Overall, the business generates cash, but volatility reduces confidence versus top-tier consistency.

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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 303.4 is below the 20-day moving average (MA) of 347.58, below the 50-day MA of 354.93, and below the 200-day MA of 338.53, indicating a bearish trend. The MACD of -17.46 indicates Positive momentum. The RSI at 18.10 is Positive, neither overbought nor oversold. The STOCH value of 7.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ROR.

Rotork plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	74 Outperform	£6.28B	20.02	24.91%	1.29%	-0.32%	-3.96%
GDWN	71 Outperform	£1.72B	15.43	33.12%	1.01%	24.42%	103.25%
ROR	67 Neutral	£2.49B	23.57	20.10%	2.04%	1.93%	-15.07%
SMIN	64 Neutral	£6.55B	29.17	13.46%	1.93%	-6.93%	18.57%
WEIR	64 Neutral	£6.85B	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	£4.75B	30.76	13.86%	2.46%	0.10%	-15.33%