Assessing Rockwell Automation: Insights From 10 Financial Analysts

Ratings for Rockwell Automation ROK were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Rockwell Automation, presenting an average target of $283.3, a high estimate of $322.00, and a low estimate of $250.00. A decline of 2.14% from the prior average price target is evident in the current average.

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Rockwell Automation by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Rockwell Automation. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Rockwell Automation compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Rockwell Automation's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Rockwell Automation analyst ratings.

Get to Know Rockwell Automation Better

Rockwell Automation is a pure-play automation competitor that is the successor entity to Rockwell International, which spun off its former Rockwell Collins avionics segment in 2001. As of fiscal 2021, the firm operates through three segments--intelligent devices, software and control, and lifecycle services. Intelligent devices contains its drives, sensors, and industrial components, software and control contains its information and network and security software, while lifecycle services contains its consulting and maintenance services as well as its Sensia JV with SLB.

Financial Milestones: Rockwell Automation's Journey

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Negative Revenue Trend: Examining Rockwell Automation's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -6.57% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Rockwell Automation's net margin is impressive, surpassing industry averages. With a net margin of 12.46%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Rockwell Automation's ROE excels beyond industry benchmarks, reaching 7.41%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Rockwell Automation's ROA excels beyond industry benchmarks, reaching 2.33%. This signifies efficient management of assets and strong financial health.

Debt Management: Rockwell Automation's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.