Rockwell Automation, Inc. (ROK) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Industrials · Specialty Industrial Machinery
Is Rockwell Automation, Inc. a safe investment right now?
Rockwell Automation, Inc.'s Altman Z-Score of 5.07 places it in the safe zone. Our DCF model estimates intrinsic value at $239.32, suggesting the stock is overvalued by 73%. Moat rating: 2.9/5 stars.
Could Rockwell Automation, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 5.07 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives ROK's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0245 | 1.2 | 0.03 |
| B · Retained Earnings / Total Assets | RE / TA | 0.8524 | 1.4 | 1.19 |
| C · EBIT / Total Assets | EBIT / TA | 0.1706 | 3.3 | 0.56 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.1412 | 0.6 | 2.48 |
| E · Revenue / Total Assets | Rev / TA | 0.8013 | 1.0 | 0.8 |
How has ROK's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2016 | 6.05 | Safe |
| 2017 | 5.58 | Safe |
| 2018 | 5.48 | Safe |
| 2019 | 6.65 | Safe |
| 2020 | 7.27 | Safe |
| 2021 | 6.74 | Safe |
| 2022 | 5.03 | Safe |
| 2023 | 4.35 | Safe |
| 2024 | 4.57 | Safe |
| 2025 | 5.07 | Safe |
Source: Calculated from ROK's latest 10-K filing on SEC EDGAR.
What could Rockwell Automation, Inc. be worth? (High Uncertainty)
Fair value range: $138.56 — $327.04
Valuation Methods Used
| Method | Fair Value | Weight | Detail |
|---|---|---|---|
| Historical PE × Forward EPS | $327.04 | 50% | 30.4x avg PE (4 years) × $10.76 forward EPS |
| DCF (Discounted Cash Flow) | $138.56 | 30% | Two-stage DCF: $1.0B TTM FCF, 11.9% growth, 12.1% WACC |
| EV/FCF Multiple | $171.17 | 20% | TTM FCF × 22x multiple + net cash |
Assumptions & Data Sources
| Parameter | Value | Source |
|---|---|---|
| FCF Growth Rate (Stage 1) | 11.9% | 70% analyst consensus + 30% historical |
| Analyst EPS Growth (This Year) | 15.3% | Consensus (25 analysts) |
| Analyst EPS Growth (Next Year) | 13.2% | Consensus |
| Historical 5Y FCF CAGR | 6.3% | SEC EDGAR |
| Terminal Growth Rate | 2.5% | Long-term GDP proxy |
| Discount Rate (WACC) | 12.1% | CAPM (Rf=4.3% + 1.54*5.5%) |
| Net Cash / (Debt) | $-3,329M | Balance sheet |
| Base FCF (TTM) | $1.0B | Trailing 12 months |
| Shares Outstanding | 112,357,908 | Latest |
Sensitivity Analysis
| Growth Rate | 8% WACC | 10% WACC | 12.1% WACC | 13% WACC |
|---|---|---|---|---|
| 0% | $146.93 | $108.58 | $85.44 | $78.34 |
| 2.5% | $170.10 | $124.74 | $97.45 | $89.10 |
| 5.0% | $196.68 | $143.20 | $111.12 | $101.32 |
| 7.5% | $232.95 | $167.99 | $129.17 | $117.35 |
Free Cash Flow History
| Year | FCF | Growth |
|---|---|---|
| 2019 | $0.9B | — |
| 2020 | $1.2B | +31.6% |
| 2021 | $1.0B | +-10.7% |
| 2022 | $1.0B | +-4.1% |
| 2023 | $1.1B | +13.3% |
Source: FCF data from SEC EDGAR filings. Price via Yahoo Finance.
Does Rockwell Automation, Inc. have a durable competitive advantage?
Moat rating: 2.9/5.
What makes up ROK's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is ROK's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2025 | 25.1% | — |
Source: ROIC calculated from SEC EDGAR filings.
Is Rockwell Automation, Inc.'s dividend safe?
Can Rockwell Automation, Inc. afford its dividend?
Payout ratio is 60.7%. FCF covers the dividend 3.6x. 45 consecutive years of payments.
Rockwell Automation, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $9.1B | $7.8B | $6.3B | Rising |
| Net Income | $1.4B | $0.9B | $1.0B | Rising |
| Free Cash Flow | $1.1B | $1.0B | $1.2B | Stable |
| Gross Margin | 48.8% | 40.0% | 41.0% | Rising |
Common questions about Rockwell Automation, Inc.
Is Rockwell Automation, Inc. at risk of going bankrupt?
Rockwell Automation, Inc.'s Altman Z-Score of 5.07 places it in the safe zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Rockwell Automation, Inc.'s intrinsic value based on DCF?
Our DCF model estimates Rockwell Automation, Inc.'s intrinsic value at $239.32 per share. The current margin of safety is -72.9%. This estimate is based on historical free cash flow trends and a risk-adjusted discount rate.
Does Rockwell Automation, Inc. have a competitive moat?
Rockwell Automation, Inc. receives a moat rating of 2.9 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Is Rockwell Automation, Inc.'s dividend safe?
Our dividend safety analysis examines payout ratio, free cash flow coverage, and the company's streak of consecutive dividend payments to determine whether the current payout is sustainable.
Before you invest in Rockwell Automation, Inc., make sure you truly understand it.
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 20, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
ROK analysis methodology: How we calculate fair value, Z-Scores, and moat ratings