Rotork plc (ROR) AI Stock Analysis

• Market Cap: £2.81B
• Dividend Yield: 2.04%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.03
• Revenue Growth: 1.93%
• EPS Growth: -15.07%
• Country: UK
• Employees: 3,493
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 828,260,600
• 10 Day Avg. Volume: 1,135,746
• 30 Day Avg. Volume: 1,234,328
• PEG Ratio: -3.36
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 3.55
• P/FCF Ratio: 20.79
• 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: £386.43
• Price Target Upside: 13.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 365.00p ▲(7.48% Upside)

Rotork plc's overall stock score is driven primarily by its strong financial performance, characterized by solid revenue and cash flow growth, low leverage, and effective equity utilization. However, technical analysis indicates potential short-term weakness, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow growth enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

Minimal leverage and a strong equity base reduce financial risk, providing stability and supporting sustainable long-term operations.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin can impact profitability, potentially limiting the company's ability to fund growth and return value to shareholders.

Earnings Per Share Decline

A decline in EPS indicates reduced profitability per share, which may affect investor confidence and the company's ability to attract capital.

Profitability Concerns

Decreasing margins suggest potential challenges in cost management or pricing power, which could pressure future profitability if not addressed.

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 generates revenue primarily through the sale of its products, which include actuators, valves, and associated control systems. The company operates through several key business segments: Actuation, Instrumentation, and Services. Each segment contributes to revenue through direct sales, aftermarket services, and maintenance contracts. Rotork's business model is bolstered by long-term relationships with clients in various sectors, ensuring repeat business and a stable revenue stream. Additionally, strategic partnerships with major industry players and a focus on research and development for innovative solutions help drive sales and expand market reach. Overall, Rotork's diverse product portfolio and commitment to customer service play a significant role in its financial success.

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. While there was a slight decrease in net profit margin, overall profitability and cash flow metrics remain solid, supporting future growth prospects.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	760.29M	754.43M	719.15M	641.81M	569.16M	604.54M
Gross Profit	380.25M	371.93M	339.10M	291.73M	262.77M	284.31M
EBITDA	167.22M	163.21M	169.94M	148.67M	133.48M	144.76M
Net Income	99.58M	103.58M	113.14M	93.24M	80.25M	85.76M
Balance Sheet
Total Assets	746.30M	780.49M	773.78M	735.73M	676.15M	753.84M
Cash, Cash Equivalents and Short-Term Investments	67.10M	149.98M	146.37M	114.77M	123.47M	187.20M
Total Debt	23.80M	24.65M	11.96M	8.84M	9.34M	9.15M
Total Liabilities	177.10M	181.98M	151.49M	145.83M	142.07M	183.09M
Stockholders Equity	566.90M	595.78M	620.59M	588.48M	534.08M	570.75M
Cash Flow
Free Cash Flow	121.52M	128.83M	113.09M	46.55M	65.27M	111.12M
Operating Cash Flow	135.22M	148.77M	124.89M	59.45M	85.42M	127.88M
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: Positive
• Last Price: 339.60
• 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 339.6 is above the 20-day moving average (MA) of 329.09, above the 50-day MA of 333.06, and above the 200-day MA of 325.28, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 60.49 is Neutral, neither overbought nor oversold. The STOCH value of 89.04 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	75 Outperform	£6.48B	28.10	23.79%	1.29%	-0.32%	-3.96%
WEIR	75 Outperform	£7.73B	25.24	17.68%	1.26%	-1.97%	40.55%
GDWN	73 Outperform	£1.75B	44.13	35.23%	1.01%	24.42%	103.25%
SPX	72 Outperform	£5.24B	32.21	14.19%	2.46%	0.10%	-15.33%
ROR	66 Neutral	£2.81B	28.90	16.97%	2.04%	1.93%	-15.07%
SMIN	66 Neutral	£7.80B	28.68	12.85%	1.93%	-6.93%	18.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%