The provider of industrial automation power, control and information solutions has "uninspiring" growth, analysts said.
"Rockwell is a high-quality, financially healthy and stable firm in a secular growth market," analysts said, adding, "In the short term, however, it is not clear what the catalyst is to re-accelerate top line growth. The age of the cycle and current sources of geographic growth are both working against its sales mix and internal initiatives."
"Further, history suggests that, in the absence of a re-energizing event, it is hard for Rockwell shares to outpace the broader market as it has not done sustainably since 2011. Until we see signs that sector and/or initiative growth can regain some vigor, we believe a cautious rating is justified," analysts added.
Shares of Rockwell are down 1.37% to $107.47.
Separately, TheStreet Ratings team rates HECLA MINING CO as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HECLA MINING CO (HL) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 37.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 42.1% when compared to the same quarter one year prior, rising from -$24.86 million to -$14.40 million.
- Despite currently having a low debt-to-equity ratio of 0.39, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that HL's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.71 is high and demonstrates strong liquidity.
- HL has underperformed the S&P 500 Index, declining 19.11% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, HECLA MINING CO underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: HL Ratings Report