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Rotork plc (GB:ROR)
LSE:ROR

Rotork plc (ROR) AI Stock Analysis

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GB

Rotork plc

(LSE:ROR)

Rating:71Outperform
Price Target:
352.00p
▲(9.45%Upside)
Rotork plc's strong financial performance is the most significant factor, driven by solid revenue growth, cash flow management, and minimal leverage. Technical indicators suggest stability but caution, with valuation metrics indicating the stock may be moderately overvalued.
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 Sentiment
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 (ROR) vs. iShares MSCI United Kingdom ETF (EWC)

Rotork plc Business Overview & Revenue Model

Company DescriptionRotork 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 MoneyRotork plc generates revenue primarily through the sale of its diverse range of flow control products and solutions. The company's key revenue streams include the manufacturing and distribution of electric, pneumatic, and hydraulic actuators, as well as associated control systems and accessories. Additionally, Rotork provides after-sales services such as maintenance, repair, and technical support, which contribute to its earnings. The company serves a broad customer base across various sectors, with significant demand driven by the need for automation and efficiency in industrial processes. Strategic partnerships and long-term contracts with major companies in the oil and gas, water, and power industries also play a crucial role in sustaining its revenue growth.

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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue754.43M719.15M641.81M569.16M604.54M
Gross Profit371.93M339.10M291.73M262.77M284.31M
EBITDA163.21M169.94M148.67M133.48M144.76M
Net Income103.58M113.14M93.24M80.25M85.76M
Balance Sheet
Total Assets780.49M773.78M735.73M676.15M753.84M
Cash, Cash Equivalents and Short-Term Investments149.98M146.37M114.77M123.47M187.20M
Total Debt24.65M11.96M8.84M9.34M9.15M
Total Liabilities181.98M151.49M145.83M142.07M183.09M
Stockholders Equity595.78M620.59M588.48M534.08M570.75M
Cash Flow
Free Cash Flow128.83M113.09M46.55M65.27M111.12M
Operating Cash Flow148.77M124.89M59.45M85.42M127.88M
Investing Cash Flow-12.95M-23.46M-6.84M-12.24M-15.84M
Financing Cash Flow-129.47M-64.85M-62.39M-136.61M-40.50M

Rotork plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price321.60
Price Trends
50DMA
314.95
Positive
100DMA
313.30
Positive
200DMA
315.77
Positive
Market Momentum
MACD
1.63
Positive
RSI
56.59
Neutral
STOCH
64.02
Neutral
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 321.6 is below the 20-day moving average (MA) of 324.30, above the 50-day MA of 314.95, and above the 200-day MA of 315.77, indicating a bullish trend. The MACD of 1.63 indicates Positive momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 64.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ROR.

Rotork plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£7.33B24.9613.99%1.28%6.10%33.05%
GBIMI
78
Outperform
£5.15B21.6623.50%1.48%0.64%4.92%
GBSPX
74
Outperform
£4.36B22.8016.16%2.96%-1.03%4.06%
74
Outperform
£6.36B20.3817.83%1.32%-4.95%36.95%
GBROR
71
Outperform
£2.68B26.4517.03%2.29%4.91%-7.75%
58
Neutral
$1.33B4.20-2.93%7.45%3.67%-51.13%
GBMRO
56
Neutral
£6.62B-1.53%1.54%3.52%-24.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ROR
Rotork plc
325.60
-1.79
-0.55%
GB:IMI
IMI plc
2,124.00
350.26
19.75%
GB:MRO
Melrose
524.80
-42.34
-7.47%
GB:SMIN
Smiths Group plc
2,252.00
558.24
32.96%
GB:SPX
Spirax Sarco Engineering
6,180.00
-2,031.32
-24.74%
GB:WEIR
Weir Group plc (The)
2,524.00
598.07
31.05%
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: Jun 27, 2025