Rockwell Automation (ROK) AI Stock Analysis

• Market Cap: $39.49B
• Dividend Yield: 1.47%
• Average Volume (3M): 985.70K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.96
• Revenue Growth: -8.23%
• EPS Growth: -3.29%
• Country: US
• Employees: 27,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 2.82
• Shares Outstanding: 112,434,395
• 10 Day Avg. Volume: 898,762
• 30 Day Avg. Volume: 985,698
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 5.09
• Enterprise Value/Gross Profit: 12.93
• Enterprise Value/Ebitda: 25.59
• 1Y Price Target: $357.50
• Price Target Upside: 0.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 73 Outperform
• Price Target: $382.00 ▲(7.40% Upside)

Rockwell Automation's overall stock score of 73 reflects strong financial performance and a positive earnings call, indicating solid operational efficiency and strategic growth plans. However, the high valuation and mixed technical indicators suggest caution. The company's focus on strategic investments and margin expansion provides a positive long-term outlook, but investors should be mindful of the high P/E ratio and potential market volatility.

Positive Factors

Investment and Growth

ROK announced plans to invest $2B over 5 years in plants and digital infrastructure to build resilience and grow share.

Margin Expansion

Rockwell Automation achieved $250 million in cost reduction benefits a quarter earlier than expected.

Stock Performance

ROK is the best performing stock since tariff lows, with rel val vs EEMI on 2025 P/E up 13% and the stock +50%.

Negative Factors

Demand Uncertainty

There is risk that prebuy is masquerading as normal demand, making analysis based on seasonal trends challenging.

Tariff Concerns

Near-term, however, tariff uncertainty continues to challenge macro confidence.

Valuation Challenges

Shares currently at a ~30% premium to EEMI on NTM P/E present near-term challenges.

Rockwell Automation Business Overview & Revenue Model

Company Description

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in the United States and internationally. The company operates in three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products, and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, digital twin and simulation software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, warehousing and logistics, and other discrete markets, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

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: 355.67
• 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 355.67 is above the 20-day moving average (MA) of 342.58, above the 50-day MA of 340.73, and above the 200-day MA of 293.74, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 86.80 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	$95.05B	27.74	27.42%	0.89%	-0.40%	24.40%
CMI	77 Outperform	$54.58B	18.92	27.56%	1.87%	-1.30%	53.39%
ROK	73 Outperform	$39.49B	41.21	28.46%	1.47%	-8.23%	-3.29%
ITW	73 Outperform	$77.75B	23.64	109.06%	2.25%	-1.40%	11.65%
CXT	67 Neutral	$3.58B	23.91	13.98%	1.06%	10.28%	-16.81%
IR	67 Neutral	$32.05B	62.95	5.21%	0.10%	4.67%	-36.65%
Sector *	64 Neutral	$10.93B	16.10	8.86%	2.03%	2.57%	-16.44%

Rockwell Automation Corporate Events

Rockwell Automation CEO Initiates Trading Plan

On May 30, 2025, Blake D. Moret, CEO of Rockwell Automation, initiated a Rule 10b5-1 trading plan to manage shares of restricted stock units and performance shares vesting in December 2025. This plan is part of his tax and financial strategy to cover taxes and diversify options expiring in 2026.

Rockwell Automation Secures $500 Million Term Loan

On May 16, 2025, Rockwell Automation, Inc. entered into a $500 million senior unsecured 364-day term loan credit agreement with several banks, including Bank of America and Wells Fargo. This agreement, which matures by May 15, 2026, will support general corporate purposes and complements Rockwell’s existing $1.5 billion five-year credit agreement. The new credit facility includes customary covenants and conditions, such as restrictions on certain financial activities and a requirement to maintain a specific EBITDA to interest expense ratio. The agreement allows for potential acceleration of indebtedness under certain conditions, but does not restrict dividend payments.