A Glimpse Into The Expert Outlook On Rockwell Automation Through 8 Analysts

8 analysts have expressed a variety of opinions on Rockwell Automation ROK over the past quarter, offering a diverse set of opinions from bullish to bearish.

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 $281.0, a high estimate of $316.00, and a low estimate of $250.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.67%.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Rockwell Automation among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Rockwell Automation. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Rockwell Automation compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Rockwell Automation's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Rockwell Automation's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Rockwell Automation analyst ratings.

Delving into Rockwell Automation's Background

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. 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.

Breaking Down Rockwell Automation's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Rockwell Automation's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -6.57%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Rockwell Automation's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.46%, the company showcases 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): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.33%, the company showcases effective utilization of assets.

Debt Management: Rockwell Automation's debt-to-equity ratio surpasses industry norms, standing at 1.15. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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