Rockwell Automation (ROK) AI Stock Analysis

• Market Cap: $45.39B
• Dividend Yield: 1.31%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 52.7
• Beta (1Y): 0.98
• Revenue Growth: 0.98%
• EPS Growth: -7.51%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.34
• Shares Outstanding: 112,273,570
• 10 Day Avg. Volume: 891,415
• 30 Day Avg. Volume: 1,027,994
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 5.12
• Enterprise Value/Gross Profit: 12.14
• Enterprise Value/Ebitda: 30.63
• 1Y Price Target: $407.23
• Price Target Upside: 0.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 11.99
• Revenue Forecast (FY): $8.84B

• Rating: 71 Outperform
• Price Target: $436.00 ▲(7.84% Upside)

Rockwell Automation's strong financial performance and positive earnings call sentiment are key strengths, driving the overall score. However, technical indicators suggest caution due to overbought conditions, and the high valuation presents a risk. The company's strategic focus on growth and margin expansion is promising, but operational challenges remain.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Rockwell's products and services, supporting long-term market position and financial health.

Cash Generation

Effective cash generation supports Rockwell's ability to invest in growth opportunities and return value to shareholders, enhancing long-term sustainability.

Autonomous Mobile Robots

The introduction of autonomous mobile robots expands Rockwell's product portfolio, enhancing its competitive edge in industrial automation.

Negative Factors

Profit Margin Decline

Declining profit margins suggest cost management issues, which could impact long-term profitability and financial stability.

Sensia Joint Venture Dissolution

The dissolution of the Sensia joint venture indicates strategic setbacks and potential revenue loss, affecting long-term growth prospects.

Lifecycle Services Segment Decline

The decline in Lifecycle Services sales reflects challenges in maintaining growth across all segments, potentially impacting overall business performance.

Rockwell Automation Business Overview & Revenue Model

Company Description

Rockwell Automation, Inc. is a leading global provider of industrial automation and information solutions. The company specializes in manufacturing hardware and software for various sectors, including manufacturing, oil and gas, automotive, and food and beverage. Core products include control systems, industrial software, and connected services that enable companies to optimize their operations and enhance productivity through smart manufacturing and data-driven solutions.

How the Company Makes Money

Rockwell Automation generates revenue through several key streams, primarily from the sale of automation equipment, software, and services. Their main revenue sources include: 1) Product Sales: This includes hardware such as controllers, sensors, and drives that are essential for automation processes. 2) Software Solutions: Rockwell offers a range of software products that assist in manufacturing operations, including data analytics and visualization tools. 3) Services: The company provides consulting, training, and maintenance services to help clients optimize their automation systems. 4) Subscription Services: Increasingly, Rockwell is moving towards subscription-based models for software, providing ongoing updates and support. Significant partnerships with technology firms and industry leaders enhance their product offerings and market reach, contributing to their overall earnings. Additionally, their investments in emerging technologies like IoT and AI are expected to drive future revenue growth.

Rockwell Automation Financial Statement Overview

Summary

Rockwell Automation shows consistent revenue growth and strong cash flow generation. However, declining profit margins and return on equity are concerns, despite improved leverage management.

Income Statement

Rockwell Automation has shown consistent revenue growth with a 3.45% increase in the latest year, indicating a positive trajectory. However, the gross profit margin has decreased from 44.52% to 0%, suggesting potential cost management issues. The net profit margin has also declined from 11.53% to 0%, impacting overall profitability. Despite these challenges, the company maintains a solid EBIT margin, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.97 from 1.17, indicating better leverage management. However, the return on equity has decreased, suggesting reduced profitability from shareholders' investments. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Rockwell Automation's free cash flow has grown by 2.85%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.00, indicating efficient cash conversion. The free cash flow to net income ratio is robust at 0.88, underscoring effective cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.34B	8.34B	8.26B	9.06B	7.76B	7.00B
Gross Profit	3.52B	4.02B	3.68B	3.72B	3.10B	2.90B
EBITDA	1.40B	1.40B	1.57B	1.99B	1.44B	1.33B
Net Income	869.00M	869.00M	952.50M	1.39B	932.20M	1.36B
Balance Sheet
Total Assets	11.22B	11.22B	11.23B	11.30B	10.76B	10.70B
Cash, Cash Equivalents and Short-Term Investments	468.00M	468.00M	471.00M	1.07B	490.70M	662.20M
Total Debt	3.65B	3.65B	4.08B	3.33B	4.18B	4.38B
Total Liabilities	7.51B	7.51B	7.56B	7.56B	7.74B	8.01B
Stockholders Equity	3.65B	3.65B	3.50B	3.56B	2.73B	2.39B
Cash Flow
Free Cash Flow	1.36B	1.36B	639.10M	1.21B	682.00M	1.14B
Operating Cash Flow	1.54B	1.54B	863.80M	1.37B	823.10M	1.26B
Investing Cash Flow	-216.00M	-216.00M	-982.50M	854.30M	-7.80M	-2.63B
Financing Cash Flow	-1.33B	-1.33B	-502.80M	-1.68B	-934.20M	1.30B

Rockwell Automation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 404.29
• 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 ROK, the sentiment is Positive. The current price of 404.29 is above the 20-day moving average (MA) of 385.97, above the 50-day MA of 366.18, and above the 200-day MA of 320.71, indicating a bullish trend. The MACD of 9.84 indicates Negative momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 94.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROK.

Rockwell Automation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	79 Outperform	$111.04B	31.34	27.30%	0.80%	0.22%	26.66%
CMI	72 Outperform	$70.49B	26.51	23.84%	1.50%	-1.78%	27.35%
ROK	71 Outperform	$45.39B	52.74	24.24%	1.31%	0.98%	-7.51%
ITW	71 Outperform	$72.44B	24.23	91.71%	2.45%	-0.41%	-10.88%
CXT	70 Outperform	$3.34B	21.76	13.54%	1.17%	9.30%	-12.55%
IR	66 Neutral	$31.03B	58.26	5.35%	0.10%	4.20%	-34.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Rockwell Automation Corporate Events

Rockwell Automation Secures New $1.5 Billion Credit Deal

On November 18, 2025, Rockwell Automation entered into a new $1.5 billion five-year unsecured revolving credit agreement with Bank of America as the administrative agent, replacing an earlier agreement from June 2022. This agreement allows for an increase in commitments by up to $750 million and includes options to extend the maturity date, with borrowings intended for general corporate purposes. The new agreement maintains similar covenants and conditions as the previous one, with no early termination penalties incurred, and it does not restrict the company’s ability to pay dividends.

Rockwell Automation Updates Executive Control Agreements

On September 30, 2025, Rockwell Automation entered into new change of control agreements with several executives, replacing those that expired on the same date. These agreements are designed to ensure executive dedication during potential changes in company control, maintaining similar terms to the previous agreements and are effective until September 30, 2028.