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An In-Depth Look at Rockwell Automation Shares

Today we’re reviewing Rockwell Automation shares…

They’ve had a great year so far with shares up 32.6%. But will this trend continue or reverse?

Check out our in-depth analysis below…

Business Overview

Rockwell Automation was founded in 1903 and is headquartered in Wisconsin. The company operates in the industrial automation industry and employs 22 thousand people. The CEO is Blake Moret.

The company operates with two segments. They are Architecture and Software, and Control Products and Solutions. The business has also expanded recently by acquiring MAVERICK Technologies for an undisclosed price.

Rockwell Automation brought in $5.9 billion in revenue last year. That’s down over the previous year…

Rockwell Automation Revenue

With the recent downturn in revenue, the overall business is valued at $22.8 billion… but is this price justified?

Rockwell Automation Shares Valuation

At $178.21 per share, you might think it’s expensive… but share price doesn’t tell us much on its own. Instead let’s look at the following key metrics…

The stock market is filled with individuals who know the price of everything, but the value of nothing. – Phillip Fisher

Price-to-Earnings: This is one of the most used valuation ratios. It comes in at 28.57 for Rockwell Automation shares. And that’s above the average for its competitors.

With the average at 21.67, Rockwell Automation shares look a bit expensive… but this is just one important ratio to watch.

Price-to-Book: A lower value here generally indicates shares are undervalued. And at 10.5, it looks expensive compared to its competitors.

Rockwell Automation’s competitor average P/B is 4. This ratio varies across industries… so it’s good to always compare to similar companies.

Debt-to-Equity: This ratio comes in at 0.6 and gives insight into the company’s financial structure.

The industry average is 0.9… so Rockwell Automation shares look a little safer.

Great company research should go much further than these three ratios… but they’re a good place to start.

To learn more about Rockwell Automation shares… check out the company’s website or the most recent SEC annual report.

Brian Kehm

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Published in Stock Research


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