Rockwell Automation, Inc.
Rockwell Automation, Inc. Fundamental Analysis
Rockwell Automation, Inc. (RWL.DE) shows moderate financial fundamentals with a PE ratio of 40.54, profit margin of 11.55%, and ROE of 27.70%. The company generates $8.6B in annual revenue with weak year-over-year growth of 0.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RWL.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakRWL.DE struggles to generate sufficient returns from assets.
Valuation Score
WeakRWL.DE trades at a premium to fair value.
Growth Score
WeakRWL.DE faces weak or negative growth trends.
Financial Health Score
ModerateRWL.DE shows balanced financial health with some risks.
Profitability Score
ModerateRWL.DE maintains healthy but balanced margins.
Key Financial Metrics
Is RWL.DE Expensive or Cheap?
P/E Ratio
RWL.DE trades at 40.54 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RWL.DE's PEG of 2.47 indicates potential overvaluation.
Price to Book
The market values Rockwell Automation, Inc. at 10.70 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.01 times EBITDA. This signals the market has high growth expectations.
How Well Does RWL.DE Make Money?
Net Profit Margin
For every $100 in sales, Rockwell Automation, Inc. keeps $11.55 as profit after all expenses.
Operating Margin
Core operations generate 18.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.70 in profit for every $100 of shareholder equity.
ROA
Rockwell Automation, Inc. generates $8.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rockwell Automation, Inc. produces operating cash flow of $1.41B, showing steady but balanced cash generation.
Free Cash Flow
Rockwell Automation, Inc. generates strong free cash flow of $1.24B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.00 in free cash annually.
FCF Yield
RWL.DE converts 3.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How RWL.DE Stacks Against Its Sector Peers
| Metric | RWL.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.54 | 33.61 | Worse (Expensive) |
| ROE | 27.70% | 1020.00% | Weak |
| Net Margin | 11.55% | -56528.00% (disorted) | Strong |
| Debt/Equity | 1.08 | 0.45 | Weak (High Leverage) |
| Current Ratio | 1.16 | 5.65 | Neutral |
| ROA | 8.81% | -291484.00% (disorted) | Weak |
RWL.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rockwell Automation, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.40%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-12.75%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
41.59%
Industry Style: Growth, Innovation, High Beta
High Growth