Rockwell Automation, Inc. (ROK) on Decifer

Decifer ranks ROK number 219 of 277 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 14% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is expected to grow about 6% a year, profits are expected to grow 12%, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• It trades about 409% above similar companies, and its growth does not yet back up that price.
• Steady high margins and improving returns are offset by revenue expected to grow about 6% a year and a price about 411% above similar companies, with no worldview role to justify the premium.

The current read

The evidence on ROK lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Industrials, Reshoring & Transport: Rockwell Automation provides factory automation systems. Domestic manufacturing investment and CHIPS Act factory construction directly drive industrial automation demand.

Read the full ROK research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.