Fundamental Case Study: Rockwell Automation, Inc. (ROK)

Rockwell Automation, Inc. (NYSE:ROK) is one of the more popular stocks investors are adding into their watchlist. Now trading with a market value of 19.54B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. As the day-to-day narrative ebbs and flows for this company, it is more important than ever to step back and get a bird’s eye view of the fundamental reality under the surface of this story.

Rockwell Automation, Inc. (NYSE:ROK) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For ROK, the company currently has 788.8 million of cash on the books, which is offset by 298.8 million in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 6.16 billion in total assets, balanced by 181.4 million in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

Rockwell Automation, Inc. saw 598300 in free cash flow last quarter, representing a quarterly net change in cash of 170000. Perhaps most importantly where cash movements are concerned, the company saw about 707000 in net operating cash flow.

Rockwell Automation, Inc. (NYSE:ROK) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 1.67 billion in total revenues. That represents a quarterly year/year change in revenues of -0.02% in sequential terms, the ROK saw sales grow by 0.00%.

But what about the bottom line? After all, that’s what really matters in the end. Rockwell Automation, Inc. is intriguing when broken down to its core data. The cost of selling goods last quarter was 934.8 million, yielding a gross basic income of 730.3 million. For shareholders, given the total diluted outstanding shares of 117.60M, this means overall earnings per share of 2220. Note, this compares with a consensus analyst forecast of 2.21 in earnings per share for its next fiscal quarterly report.

Is Rockwell Automation, Inc. (NYSE:ROK) Valuation Attractive

Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 8.86 in total earnings per share. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Rockwell Automation, Inc..