Rockwell Automation Inc.
Find Ratings ReportsROCKWELL AUTOMATION's gross profit margin for the first quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ROCKWELL AUTOMATION has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 23.77% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 2052.1 | 1981.0 |
EBITDA ($mil) | 357.8 | 401.9 |
EBIT ($mil) | 280.9 | 344.1 |
Net Income ($mil) | 215.2 | 384.0 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 440.1 | 481.0 |
Total Assets ($mil) | 11333.3 | 11149.8 |
Total Debt ($mil) | 3743.5 | 4371.1 |
Equity ($mil) | 3607.7 | 2914.8 |
Profitability | Q1 FY24 | Q1 FY23 |
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Gross Profit Margin | 42.47 | 43.99 |
EBITDA Margin | 17.43 | 20.28 |
Operating Margin | 13.69 | 17.37 |
Sales Turnover | 0.81 | 0.71 |
Return on Assets | 10.75 | 9.63 |
Return on Equity | 33.78 | 36.87 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.25 | 1.03 |
Debt/Capital | 0.51 | 0.6 |
Interest Expense | 33.3 | 34.1 |
Interest Coverage | 8.44 | 10.09 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 114.59 | 114.78 |
Div / share | 1.25 | 1.18 |
EPS | 1.86 | 3.31 |
Book value / share | 31.48 | 25.39 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 981676.0 | 913545.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 25.76 for the Electrical Equipment, Appliance, Component Manufac subsector and a value on par with the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 8.89 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 4.14. The current price-to-sales ratio is well above the S&P 500 average and above the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, ROCKWELL AUTOMATION proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ROK 26.64 | Peers 25.76 | ROK 23.97 | Peers 21.85 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. ROK is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ROK is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ROK 20.82 | Peers 20.81 | ROK 12.75 | Peers 2.83 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ROK is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ROK trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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ROK 8.89 | Peers 4.14 | ROK 13.86 | Peers -22.53 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ROK is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ROK is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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ROK 3.51 | Peers 3.10 | ROK 15.79 | Peers 28.53 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ROK is trading at a premium to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ROK significantly trails its peers on the basis of sales growth. |
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