Rockwell Automation (ROK) AI Stock Analysis

• Market Cap: $40.08B
• Dividend Yield: 1.45%
• Average Volume (3M): 717.39K
• Price to Earnings (P/E): 41.8
• Beta (1Y): 0.94
• Revenue Growth: -8.23%
• EPS Growth: -3.29%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.82
• Shares Outstanding: 112,434,395
• 10 Day Avg. Volume: 620,417
• 30 Day Avg. Volume: 717,389
• PEG Ratio: -1.04
• Price to Book (P/B): 8.75
• Price to Sales (P/S): 3.70
• P/FCF Ratio: 47.89
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 12.93
• Enterprise Value/Ebitda: 25.59
• 1Y Price Target: $363.33
• Price Target Upside: 0.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: $381.00 ▲(5.39% Upside)

Rockwell Automation's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. Technical analysis and valuation present some concerns, with mixed signals and a high P/E ratio suggesting caution. The company's strategic investments and operational efficiency provide a solid foundation for future growth, but market volatility and valuation risks should be considered.

Positive Factors

Sales Growth

The return to sales growth indicates a recovery and expansion in market demand, which can lead to increased market share and revenue stability.

Strategic Investments

Substantial investments in infrastructure and talent are likely to enhance operational capacity and competitive positioning, supporting long-term growth.

Cash Flow Management

Strong free cash flow growth enhances financial flexibility, allowing for reinvestment in the business and potential debt reduction, supporting sustainability.

Negative Factors

Declining Net Profit Margins

A decline in net profit margins indicates pressure on profitability, which could affect the company's ability to reinvest in growth and sustain competitive advantages.

Challenges in Lifecycle Services

Declining sales in Lifecycle Services suggest potential weaknesses in service offerings or market demand, which could impact long-term revenue streams.

Weakness in Process Industries

Weakness in Process Industries reflects vulnerability to external market conditions, which could hinder growth in this segment and affect overall performance.

Rockwell Automation Business Overview & Revenue Model

Company Description

Rockwell Automation (ROK) is a leading global provider of industrial automation and information technology solutions. The company specializes in helping manufacturers and industrial enterprises optimize their operations through a broad range of products and services, including control systems, software, and connected services. Rockwell operates primarily in sectors such as manufacturing, oil and gas, food and beverage, automotive, and life sciences, focusing on enhancing productivity, safety, and sustainability for its clients.

How the Company Makes Money

Rockwell Automation generates revenue through multiple streams, primarily from the sale of hardware, software, and services related to industrial automation. Key revenue streams include the sale of control systems, sensors, and safety equipment, as well as advanced software solutions for data analytics and process optimization. The company also earns significant income through its services division, which offers consulting, training, and support services to customers. Additionally, Rockwell has established strategic partnerships with other technology and engineering firms, which enhance its offerings and market reach, further contributing to its earnings. The company's focus on innovation and digital transformation initiatives, such as the Industrial Internet of Things (IIoT), has also positioned it well in the evolving market, driving additional revenue opportunities.

Rockwell Automation Financial Statement Overview

Summary

Rockwell Automation demonstrates solid financial health with stable income and cash flow performance. While there are concerns regarding declining net profit margins and return on equity, the company has improved its leverage and maintains strong cash flow metrics. The cyclical nature of the industrial machinery sector contributes to revenue volatility, but operational efficiency and cash management provide a strong foundation for future growth.

Income Statement

Rockwell Automation shows a stable income statement with a consistent gross profit margin around 39-41% over the years. The net profit margin has slightly decreased from 19% in 2021 to 12% in the TTM period, indicating some pressure on profitability. Revenue growth has been volatile, with a notable decline in 2024 but a recovery in the TTM period. The EBIT and EBITDA margins have been relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of around 1.12 in the TTM period, down from higher levels in previous years, indicating improved leverage management. Return on equity has decreased from 56% in 2021 to 28% in the TTM period, showing reduced profitability on equity. The equity ratio has remained stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 23% in the TTM period, recovering from a decline in 2024. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio remains robust, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.06B	8.26B	9.05B	7.76B	7.00B	6.33B
Gross Profit	3.18B	3.68B	4.21B	3.52B	3.34B	2.94B
EBITDA	1.61B	1.57B	1.99B	1.43B	1.81B	1.41B
Net Income	970.10M	952.50M	1.38B	919.10M	1.34B	1.02B
Balance Sheet
Total Assets	11.19B	11.23B	11.30B	10.76B	10.70B	7.26B
Cash, Cash Equivalents and Short-Term Investments	495.00M	471.00M	1.07B	490.70M	662.20M	704.60M
Total Debt	3.88B	4.08B	3.33B	4.18B	4.38B	2.36B
Total Liabilities	7.57B	7.56B	7.56B	7.74B	8.01B	5.92B
Stockholders Equity	3.46B	3.50B	3.56B	2.73B	2.39B	1.03B
Cash Flow
Free Cash Flow	1.32B	639.10M	1.21B	682.00M	1.14B	1.01B
Operating Cash Flow	1.52B	863.80M	1.37B	823.10M	1.26B	1.12B
Investing Cash Flow	-227.50M	-982.50M	854.30M	-7.80M	-2.63B	-618.00M
Financing Cash Flow	-1.22B	-502.80M	-1.68B	-934.20M	1.30B	-798.90M

Rockwell Automation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 361.53
• 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 361.53 is above the 20-day moving average (MA) of 348.89, above the 50-day MA of 346.22, and above the 200-day MA of 306.94, indicating a bullish trend. The MACD of 3.26 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 84.08 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	―	$97.69B	28.47	27.42%	0.93%	-0.40%	24.40%
CXT	―	$3.79B	25.25	13.98%	1.02%	10.28%	-16.81%
ROK	―	$40.08B	41.83	28.46%	1.45%	-8.23%	-3.29%
IR	―	$31.71B	62.29	5.21%	0.10%	4.67%	-36.65%
CMI	―	$58.07B	19.82	27.56%	1.77%	-1.30%	53.39%
ITW	―	$71.64B	23.85	91.71%	2.47%	-0.41%	-10.88%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Rockwell Automation Corporate Events

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.

The most recent analyst rating on (ROK) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on Rockwell Automation stock, see the ROK Stock Forecast page.

Rockwell Automation Reports Strong Q3 2025 Results

Rockwell Automation, Inc. is a global leader in industrial automation and digital transformation, headquartered in Milwaukee, Wisconsin, and operates in more than 100 countries.

Rockwell Automation’s Earnings Call: Growth Amid Challenges

Rockwell Automation’s latest earnings call presented a balanced view of the company’s current standing and future prospects. The call highlighted a return to year-over-year sales growth and successful productivity programs, which were tempered by challenges in annual recurring revenue and project delays. While strategic investments and strong performance in certain segments provide optimism, uncertainties and sales declines in specific areas remain a concern.