QualityDipStocks / Industrials · Industrial machinery
Rockwell Automation ROK
Not in a dip by our rules: 12% below its 52-week high.
A quality company trading well above our fair value estimate.
- Fair value est.
- $213.55−51%
- Market Value
- $432.94price +1%
- Off 52-wk high
- −12%
- Risk vs market
- Above marketbeta 1.39
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $436.20
- Fair value est.base case$213.55−51.0%
- 52-wk lowlowest close, 1 year$348.51−20.1%
- Market Valueavg paid since Aug 4$432.94−0.7%
- PriceFri Oct 30 close$436.20you are here
- 52-wk highhighest close, 1 year$495.08+13.5%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, ROK’s free cash flow would need to grow about 16% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much ROK moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 2.4× the S&P 500’s.
- Beta vs S&P 500
- 1.39
- Volatility
- 31% vs 13% SPY
- Correlation SPY
- 0.57
- Correlation QQQ
- 0.52
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ProfitabilityReturn on equity of 34% over the last 12 months.
ProfitabilityReturn on invested capital of 27%, above the 9.5% discount rate our DCF uses.
GrowthSales grew 11% to $9.0B over the last 12 months vs the 12 months before (SEC filings).
ProfitabilityOperating margin of 23%, above the 15% median for the 128 Industrials companies we cover.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $213.55, 51% below the price.
ProfitabilityReturn on equity fell 15 points in two fiscal years, to 24% in FY2025.
ValuationP/E of 40.6× is 20% above its own average of 34.0× at the last 3 fiscal year-ends.
ValuationP/E of 40.6× vs a 27.5× median for the 130 Industrials companies we cover.
RiskReports earnings Nov 5 (consensus EPS $3.55): results can move the price sharply and reset Market Value.
Who’s talking about it
Notable investors, executives, analysts and public figures on Rockwell Automation in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Industrial machinery
All fundamentals
P/E 40.6 · FCF yield 3.1% · ROE 34%
Valuation
- P/E
- 40.6×3-yr-end avg 34.0× · Industrials median 27.5×
- Price / FCF
- 32.4×
- FCF yield
- 3.1%
- EV / EBITDA
- 21.8×
- Price / sales
- 5.43×
- Price / book
- 13.93×
- Market cap
- $48.7Bprice × diluted shares
- Enterprise value
- $51.5B
Growth
- Revenue, 12 months
- $9.0B
- Sales growth, 12 months
- +11.3%vs the 12 months before
- Sales growth, 3 yrs
- +2.4%/yrfrom FY2022
- Diluted EPS, 12 months
- $10.68
- EPS growth, last FY
- −7.4%
- Net income, 12 months
- $1.2B
- Net income growth
- +24%12 months vs before
Profitability
- Gross margin
- 49.1%
- Operating margin
- 22.7%
- Net margin
- 13.4%
- FCF margin
- 16.8%
- Return on equity
- 34%
- Return on invested capital
- 27%
Balance sheet
- Cash & short-term inv.
- $479M
- Total debt
- $3.3B
- Net cash
- −$2.8B
- Debt / equity
- 0.93×
- Interest coverage
- 14.7×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.5B
- FCF growth, 12 months
- +14%
- Dividend yield
- 1.26%$611M paid
- Payout ratio
- 51%
- Buybacks, 12 months
- $823M1.7% of market cap
- Share count, 1 year
- −1.2%diluted shares vs a year ago
- Stock-based comp
- $89M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Rockwell Automation’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $213.55 · MV $432.94 · FCF value $325.85
Assumes 3.0% growth for 5 years (revenue grew 2.4% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $13.48 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Aug 4, 2026. Net debt $2.8B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 51 · 5 days +2.4%
The business
FCF $1.5B · Sales +8%
- Free cash flow, 12 months$1.5B
- Free-cash-flow yield3.0%
- Free-cash-flow margin17%
- Gross margin49%
- Operating margin20%
- Return on invested capital21%
- Return on equity34%
- Sales growth (latest quarter vs year-ago quarter)+8%
- Net debt / EBITDA1.8×
Next report
Nov 5
- DateThu Nov 5, before the open
- Consensus EPS$3.55
- Year-ago EPS$3.34
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when ROK fires a reversal signal
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