Home Sectors Industrials Valuation Today: Rockwell Automation (NYSE: ROK)

Valuation Today: Rockwell Automation (NYSE: ROK)


Rockwell Automation is in the industrial products industry and is in the industrials sector. The company CEO is Blake D. Moret. Rockwell Automation Inc engages in providing industrial automation and information solutions to make its customers more productive and the world more sustainable. It operates in two segments: architecture and software and control products and solutions.

Previous Intraday Trading Performance:

The ROK stock showed a previous change of 0.15% with an open at 169.35 and a close of 169.70. It reached an intraday high of 170.18 and a low of 168.99.

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The stock has a market cap of $20.3b with 119.5m shares outstanding, of which the float is 118.2m shares. Trading volume reached 639,418 shares compared to its average volume of 1,147,963 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Rockwell Automation shares returned -0.60% and in the past 30 trading days it returned 13.95%. Over three months, it changed 2.25%. In one year it has changed -7.04% and within that year its 52-week high was 198.23 and its 52-week low was 141.46. ROK stock is 19.96% above its 52 Week Low.

Our calculations show a 200 day moving average of 170.78 and a 50 day moving average of 160.76. Currently ROK stock is trading -0.63% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

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The last annual fiscal EPS for the company was reported at 4.24 that ended on 30th of September 2018, which according to the previous close, that is a PE of 40.02. Based on 8 analyst estimates, the consensus EPS for the next quarter is 2.03. The TTM EPS is 8.12, which comes to a TTM PE of 20.90. Historically, the PE high was 40.02 and the PE low was 14.40. If the stock reached its PE low, that would represent a price of 116.92, which is a decrease of -31.10%.

The following are the last four quarter reported earnings per share:
12-31-2018:  2.21
09-30-2018:  2.11
06-30-2018:  2.16
03-31-2018:  1.89

The dividend per share is currently 3.88, which is a dividend yield of 2.29%. Also, the payout ratio is 47.78%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 110.21, which means it may be overvalued by -53.98%

Indicators to Watch:

Based on the latest filings, there is 1.10% of insider ownership and 113.80% of institutional ownership. Short-interest is 3,267,193, which is 2.73% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.90. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.35

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 49.64%, return on assets is 13.00%, profit margin is 12.68%, price-to-sales is 3.01 and price-to-book is 15.90.

Company Scores:

All scores are out of six:
 0  :Valuation Score
 4  :Past Performance Score
 4  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.