📊 ROK Key Takeaways
Is Rockwell Automation, Inc. (ROK) a Good Investment?
Rockwell Automation demonstrates exceptional profitability and cash generation with 49.3% gross margins, 22.2% operating margins, and $445M in free cash flow, supported by strong interest coverage (13.3x) and manageable leverage. However, fundamentals are constrained by stagnant growth: revenue increasing only 0.9% YoY, net income up 0.2% YoY, and diluted EPS declining 7.4% YoY, suggesting a mature business lacking meaningful expansion.
Rockwell Automation shows solid underlying profitability with strong gross and operating margins, positive free cash flow, and manageable leverage. However, growth quality is mixed because revenue and net income are nearly flat, diluted EPS declined, and liquidity is only adequate rather than robust. The fundamentals support stability, but not enough acceleration to justify a more aggressive rating.
Why Buy Rockwell Automation, Inc. Stock? ROK Key Strengths
- Exceptional profit margins across all levels (gross 49.3%, operating 22.2%, net 15.1%) indicating pricing power and operational efficiency
- Strong free cash flow generation of $445M (10.2% FCF margin) with solid operating cash flow of $554M supporting financial flexibility
- Robust balance sheet with debt-to-equity of 0.73x, interest coverage of 13.3x, and ROE of 18.6% demonstrating efficient capital deployment
- Strong profitability profile with 48.3% gross margin and 20.7% operating margin
- Positive free cash flow generation with $170.00M in free cash flow
- Balance sheet leverage appears manageable with 0.69x debt-to-equity and 6.0x interest coverage
ROK Stock Risks: Rockwell Automation, Inc. Investment Risks
- Stagnant growth profile with revenue up only 0.9% YoY and net income growing just 0.2% YoY indicates mature/declining market position
- Diluted EPS declining 7.4% YoY despite flat net income growth suggests shareholder dilution and potential share count increases
- Liquidity pressure with quick ratio of 0.76x and current ratio of 1.09x, below comfort levels for operational flexibility
- Growth is muted, with revenue up only 0.9% and net income up 0.2% year over year
- Diluted EPS fell 7.4% year over year, indicating weaker per-share earnings momentum
- Liquidity is somewhat tight with a 1.16x current ratio and 0.80x quick ratio
Key Metrics to Watch
- Revenue growth acceleration and organic growth rates versus inorganic M&A activity
- Free cash flow yield and capital allocation strategy including dividends and share buybacks
- Working capital trends and quick ratio improvement to ensure adequate liquidity
- Order/revenue growth acceleration and operating income expansion
- Free cash flow conversion and liquidity ratios
Rockwell Automation, Inc. (ROK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Rockwell Automation, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ROK Profit Margin, ROE & Profitability Analysis
ROK vs Market Sector: How Rockwell Automation, Inc. Compares
How Rockwell Automation, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rockwell Automation, Inc. Stock Overvalued? ROK Valuation Analysis 2026
Based on fundamental analysis, Rockwell Automation, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rockwell Automation, Inc. Balance Sheet: ROK Debt, Cash & Liquidity
ROK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rockwell Automation, Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $11.95 reflects profitable operations.
ROK Revenue Growth, EPS Growth & YoY Performance
ROK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.0B | $252.0M | $2.22 |
| Q1 2026 | $1.9B | $184.0M | $1.61 |
| Q3 2025 | $2.1B | $232.0M | $2.02 |
| Q2 2025 | $2.0B | $252.0M | $2.22 |
| Q1 2025 | $1.9B | $184.0M | $1.61 |
| Q3 2024 | $2.1B | $232.0M | $2.02 |
| Q2 2024 | $2.1B | $266.2M | $2.31 |
| Q1 2024 | $2.0B | $215.2M | $1.86 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rockwell Automation, Inc. Dividends, Buybacks & Capital Allocation
ROK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rockwell Automation, Inc. (CIK: 0001024478)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ROK
What is the AI rating for ROK?
Rockwell Automation, Inc. (ROK) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ROK's key strengths?
Claude: Exceptional profit margins across all levels (gross 49.3%, operating 22.2%, net 15.1%) indicating pricing power and operational efficiency. Strong free cash flow generation of $445M (10.2% FCF margin) with solid operating cash flow of $554M supporting financial flexibility. ChatGPT: Strong profitability profile with 48.3% gross margin and 20.7% operating margin. Positive free cash flow generation with $170.00M in free cash flow.
What are the risks of investing in ROK?
Claude: Stagnant growth profile with revenue up only 0.9% YoY and net income growing just 0.2% YoY indicates mature/declining market position. Diluted EPS declining 7.4% YoY despite flat net income growth suggests shareholder dilution and potential share count increases. ChatGPT: Growth is muted, with revenue up only 0.9% and net income up 0.2% year over year. Diluted EPS fell 7.4% year over year, indicating weaker per-share earnings momentum.
What is ROK's revenue and growth?
Rockwell Automation, Inc. reported revenue of $4.3B.
Does ROK pay dividends?
Rockwell Automation, Inc. pays dividends, with $309.0M distributed to shareholders in the trailing twelve months.
Where can I find ROK SEC filings?
Official SEC filings for Rockwell Automation, Inc. (CIK: 0001024478) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ROK's EPS?
Rockwell Automation, Inc. has a diluted EPS of $5.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ROK a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Rockwell Automation, Inc. has a HOLD rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ROK stock overvalued or undervalued?
Valuation metrics for ROK: ROE of 18.6% (sector avg: 15%), net margin of 15.1% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy ROK stock in 2026?
Our dual AI analysis gives Rockwell Automation, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ROK's free cash flow?
Rockwell Automation, Inc.'s operating cash flow is $554.0M, with capital expenditures of $109.0M. FCF margin is 10.2%.
How does ROK compare to other Market stocks?
Vs Default sector averages: Net margin 15.1% (avg: 12%), ROE 18.6% (avg: 15%), current ratio 1.09 (avg: 1.8).