Rockwell Automation, Inc. is at the forefront of transforming how industries operate, harnessing the power of automation to enhance efficiency and productivity in our daily lives. Renowned for its innovative solutions across intelligent devices, software, and lifecycle services, Rockwell not only leads the industrial machinery sector but also shapes the future of manufacturing and logistics. As we delve into this analysis, we must consider whether Rockwell’s strong fundamentals continue to validate its current market valuation and growth trajectory.
Table of contents
Company Description
Rockwell Automation, Inc. is a prominent player in the industrial automation and digital transformation space, founded in 1903 and headquartered in Milwaukee, Wisconsin. With a market capitalization of approximately $43.17B, the company operates across three key segments: Intelligent Devices, Software & Control, and Lifecycle Services. Its comprehensive offerings include hardware, such as drives and safety components, alongside advanced software solutions for control, visualization, and security. Rockwell serves a diverse range of industries, from automotive and aerospace to renewable energy. As a leader in the field, Rockwell Automation is instrumental in shaping the future of industrial efficiency and innovation, reinforcing its commitment to sustainability and digital excellence.
Fundamental Analysis
In this section, I will perform a fundamental analysis of Rockwell Automation, Inc., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for Rockwell Automation, Inc. (ROK) over the last five fiscal years, providing a snapshot of the company’s financial performance.
| Income Statement | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 6.997B | 7.760B | 9.058B | 8.262B | 8.342B |
| Cost of Revenue | 4.100B | 4.658B | 5.341B | 4.584B | 4.326B |
| Operating Expenses | 2.168B | 1.767B | 2.024B | 2.414B | 2.594B |
| Gross Profit | 2.898B | 3.102B | 3.717B | 3.678B | 4.016B |
| EBITDA | 1.330B | 1.436B | 1.994B | 1.568B | 1.398B |
| EBIT | 1.152B | 1.198B | 1.743B | 1.250B | 1.073B |
| Interest Expense | 0.092B | 0.120B | 0.132B | 0.151B | 0.156B |
| Net Income | 1.358B | 0.932B | 1.387B | 0.953B | 0.869B |
| EPS | 11.69 | 8.02 | 12.03 | 8.32 | 7.69 |
| Filing Date | 2021-11-09 | 2022-11-08 | 2023-11-08 | 2024-11-12 | 2025-11-12 |
Interpretation of Income Statement
Over the past five years, Rockwell Automation has shown a mixed trend in revenue and net income. Revenue increased steadily until 2023, peaking at 9.058B, but has slightly declined in 2024 and 2025. Net income followed a similar trajectory, with a peak in 2023 at 1.387B, then decreasing to 0.869B in 2025. Gross margins have fluctuated, reflecting varying cost pressures, while operating expenses have risen notably. In 2025, despite the drop in revenue and net income, the company maintained a healthy gross profit margin, indicating effective cost management strategies amidst challenging market conditions.
Financial Ratios
The following table summarizes the financial ratios for Rockwell Automation, Inc. (ROK) over the last few fiscal years.
| Metrics | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 19.22% | 11.84% | 15.26% | 11.53% | 0% |
| ROE | 56.26% | 33.72% | 38.79% | 27.23% | 0% |
| ROIC | 13.13% | 13.65% | 16.16% | 12.39% | 0% |
| P/E | 25.37 | 27.13 | 23.76 | 32.13 | 0 |
| P/B | 14.27 | 9.15 | 9.21 | 8.75 | 0 |
| Current Ratio | 1.02 | 1.01 | 1.46 | 1.08 | 2.37 |
| Quick Ratio | 0.76 | 0.72 | 1.04 | 0.72 | 1.56 |
| D/E | 1.83 | 1.53 | 0.94 | 1.17 | 0.97 |
| Debt-to-Assets | 40.97% | 38.88% | 29.50% | 36.37% | 31.67% |
| Interest Coverage | 13.43 | 10.98 | 12.54 | 8.37 | 0 |
| Asset Turnover | 0.65 | 0.72 | 0.80 | 0.74 | – |
| Fixed Asset Turnover | 7.29 | 8.55 | 8.76 | 6.89 | – |
| Dividend Yield | 1.46% | 2.08% | 1.65% | 1.87% | 0% |
Interpretation of Financial Ratios
Analyzing Rockwell Automation’s financial ratios for FY 2025 reveals a mixed picture of its financial health. The liquidity ratios are strong, with a current ratio of 2.37 and a quick ratio of 1.56, indicating robust short-term financial stability. However, profitability ratios show concerning signs, as all margins (gross, EBIT, EBITDA, operating, and net profit) are at 0, which raises red flags about the company’s ability to generate profits. The debt ratios indicate moderate leverage, with a debt-to-equity ratio of 0.97 and a debt-to-capital ratio of 0.49, suggesting a balanced approach to financing. Nonetheless, the solvency ratio is 0, indicating potential risk in covering long-term obligations. Overall, while liquidity is strong, the absence of profitability raises significant concerns for investors.
Evolution of Financial Ratios
Over the past five years, Rockwell Automation’s financial ratios have shown a downward trend in profitability, culminating in 2025, where key profit margins are at 0. Conversely, liquidity ratios have improved, indicating better short-term financial management. This contrasting trend highlights a potential risk if profitability does not return.
Distribution Policy
Rockwell Automation, Inc. does not currently pay dividends, which can be attributed to its focus on reinvestment for growth and innovation. The company is in a high-growth phase, prioritizing investments in research and development and strategic acquisitions. Although it does not distribute cash to shareholders, Rockwell engages in share buybacks to enhance shareholder value. This strategy appears aligned with long-term value creation, as it supports future growth while managing capital efficiently.
Sector Analysis
Rockwell Automation, Inc. operates in the Industrial – Machinery sector, providing automation and digital solutions with a strong portfolio across various industries, facing competition from key players while leveraging its innovative technologies.
Strategic Positioning
Rockwell Automation, Inc. (ROK) holds a significant position in the industrial automation sector, boasting a market cap of approximately $43.2B. The company has established a competitive edge through its diverse product offerings across three segments: Intelligent Devices, Software & Control, and Lifecycle Services. With a beta of 1.507, ROK exhibits higher volatility relative to the market, indicating potential risk but also opportunity. As technological advancements continue to disrupt traditional manufacturing processes, Rockwell’s focus on digital transformation solutions positions it well against competitors, although the pressure remains high from emerging players in the automation landscape.
Revenue by Segment
The pie chart below illustrates Rockwell Automation’s revenue distribution across its segments for the fiscal year 2025.
In 2025, Rockwell Automation’s revenue shows a slight decline in the Intelligent Devices Segment to 3.76B, while Lifecycle Services and Software And Control segments reported 2.20B and 2.38B, respectively. The Intelligent Devices Segment remains the largest contributor but has experienced a downward trend from previous years. Notably, the Software And Control Segment has shown resilience with growth from 2.19B in 2024 to 2.38B in 2025, indicating a shift toward software solutions. Overall, while the total revenue is stable, the slowing growth in key segments highlights potential concentration risks for the company.
Key Products
Below is a summary of the key products offered by Rockwell Automation, Inc., highlighting their essential features and market applications.
| Product | Description |
|---|---|
| Intelligent Devices | This segment includes advanced hardware like drives, safety components, and motion control systems designed to optimize industrial operations. |
| Software & Control | Offers control and visualization software, digital twin solutions, and network security infrastructure, enabling seamless automation and management of production environments. |
| Lifecycle Services | Provides consulting, maintenance, and professional services to enhance operational efficiency and ensure the longevity of automation solutions. |
Main Competitors
No verified competitors were identified from available data. However, Rockwell Automation, Inc. holds a significant position in the industrial automation sector, with a market capitalization of approximately $43.17B. The company is known for its comprehensive solutions in automation and digital transformation, serving diverse markets such as automotive, life sciences, and renewable energy. Rockwell Automation’s competitive position is bolstered by its extensive product offerings and a strong global presence.
Competitive Advantages
Rockwell Automation, Inc. (ROK) boasts significant competitive advantages through its diverse product offerings and strong market presence in industrial automation and digital transformation solutions. The company operates in three key segments—Intelligent Devices, Software & Control, and Lifecycle Services—allowing it to cater to a wide range of industries, from automotive to renewable energy. Looking ahead, ROK is poised to capitalize on emerging opportunities in smart manufacturing and the Internet of Things (IoT), enhancing operational efficiencies for clients and driving growth through innovative new products and services.
SWOT Analysis
This analysis provides a structured overview of Rockwell Automation, Inc.’s strengths, weaknesses, opportunities, and threats, helping investors make informed decisions.
Strengths
- Strong market presence
- Diverse product offerings
- Experienced management
Weaknesses
- High dependency on distributors
- Vulnerability to economic downturns
- Limited brand recognition in emerging markets
Opportunities
- Growth in automation demand
- Expansion into emerging markets
- Advancements in digital transformation
Threats
- Intense competition
- Regulatory changes
- Supply chain disruptions
The overall SWOT assessment indicates that Rockwell Automation has a robust position in the industrial automation sector, with significant opportunities for growth. However, investors should remain cautious of external threats and internal weaknesses that could impact the company’s performance.
Stock Analysis
Over the past year, Rockwell Automation, Inc. (Ticker: ROK) has exhibited significant price movements, culminating in a bullish trend characterized by a robust performance. The stock has shown notable dynamics, with fluctuations that indicate a strong upward momentum.
Trend Analysis
Analyzing the stock’s performance over the past year, I observe a percentage change of +26.2%. This substantial increase confirms a bullish trend for Rockwell Automation. The trend displays acceleration, with notable highs reaching $384.96 and lows at $227.11. Additionally, a standard deviation of 36.41 indicates some level of volatility, suggesting that while the stock is on an upward trajectory, fluctuations in price could still occur.
Volume Analysis
In the last three months, total trading volume for ROK has reached approximately 511.2M shares, with buyer-driven activity accounting for 55.95% of the total volume. The volume trend is increasing, indicating heightened investor interest. Recent figures show a strong buyer dominance, with buyers comprising 84.91% of the last month’s activity, reflecting bullish sentiment among investors and suggesting robust market participation.
Analyst Opinions
Recent analyst recommendations for Rockwell Automation, Inc. (ROK) have generally leaned towards a cautious stance, with a consensus rating of “sell.” Analysts highlight concerns over the company’s low scores in key financial metrics, such as return on equity and price-to-earnings ratio, with a notable rating of C- from various analysts. These factors suggest that investors may face challenges in achieving favorable returns in the near term. As such, I recommend proceeding with caution when considering ROK for your portfolio.
Stock Grades
Rockwell Automation, Inc. (ROK) has received consistent ratings from several reputable grading companies, indicating a stable outlook from analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | Maintain | Outperform | 2025-11-21 |
| B of A Securities | Maintain | Buy | 2025-11-20 |
| JP Morgan | Maintain | Neutral | 2025-11-11 |
| Morgan Stanley | Maintain | Overweight | 2025-11-10 |
| Barclays | Maintain | Overweight | 2025-11-07 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-07 |
| JP Morgan | Maintain | Neutral | 2025-10-15 |
| Oppenheimer | Maintain | Outperform | 2025-10-14 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-06 |
| Barclays | Maintain | Overweight | 2025-08-14 |
Overall, the trend in grades for ROK remains positive, with multiple analysts maintaining their ratings, particularly in the “Outperform” and “Overweight” categories, suggesting confidence in the company’s performance.
Target Prices
The consensus target prices for Rockwell Automation, Inc. (ROK) indicate a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 402 | 345 | 377.6 |
Overall, analysts expect ROK to reach a consensus target of approximately 377.6, suggesting a balanced perspective between high and low estimates.
Consumer Opinions
Consumer sentiment about Rockwell Automation, Inc. (ROK) reveals a complex landscape of satisfaction and concerns, reflecting both the strengths and weaknesses of the company.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional product reliability.” | “Customer service could be improved.” |
| “Innovative solutions for automation.” | “Pricing is on the higher side.” |
| “Strong support and training resources.” | “Software updates are often delayed.” |
Overall, consumer feedback highlights Rockwell Automation’s strong product reliability and innovative solutions as key strengths, while concerns about customer service and pricing persist as notable weaknesses.
Risk Analysis
In evaluating Rockwell Automation, Inc. (ticker: ROK), I have identified several key risks that may affect its performance and the investment outlook.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in demand for automation solutions due to economic conditions. | High | High |
| Supply Chain Disruptions | Potential delays and cost increases due to geopolitical tensions or natural disasters. | Medium | High |
| Technological Change | Rapid advancements may outpace ROK’s innovation capabilities. | Medium | Medium |
| Regulatory Risks | Changes in regulations affecting manufacturing standards and emissions. | Medium | Medium |
| Cybersecurity Threats | Increasing risk of cyberattacks on operational technology systems. | High | High |
In summary, the most pressing risks for ROK involve market volatility and cybersecurity threats, both of which have significant potential impacts on the company’s performance.
Should You Buy Rockwell Automation, Inc.?
Rockwell Automation, Inc. reported a revenue of 8.34B and a net income of 869M, indicating a positive net margin. However, the company carries a significant total debt of 3.65B against total equity of 43.51B, reflecting a notable leverage position. The fundamentals show a mixed evolution, with a rating of C-.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company’s net margin is 0.104 or 10.4%, indicating a positive net margin. However, Rockwell Automation’s ROIC is below its WACC, signifying value destruction. The overall rating of C- suggests weak performance relative to peers. Additionally, the company has a high total debt at 3.65B, which could pose risks.
Conclusion Given that the ROIC is below the WACC, it indicates value destruction, and while the net margin is positive, the overall rating indicates potential weaknesses. Therefore, it might be prudent to wait for more favorable indicators before considering any investment.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Rockwell Automation: Back On Offense And A Compelling Valuation (Rating Upgrade) (ROK) – Seeking Alpha (Nov 24, 2025)
- Swiss National Bank Buys 23,900 Shares of Rockwell Automation, Inc. $ROK – MarketBeat (Nov 24, 2025)
- Rockwell Automation (ROK): Assessing Valuation After $2B Wisconsin Expansion and Robust Q4 Growth – Yahoo Finance (Nov 22, 2025)
- B of A Securities Maintains Rockwell Automation (ROK) Buy Recommendation – Nasdaq (Nov 21, 2025)
- Rockwell Automation to Build New Greenfield Manufacturing Site in Southeastern Wisconsin – Business Wire (Nov 18, 2025)
For more information about Rockwell Automation, Inc., please visit the official website: rockwellautomation.com
