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Rockwell Automation Inc ROK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Rockwell Has Multiple Growth Vectors, but The Stock Is Rich in Our View as We Maintain FVE

Joshua Aguilar Equity Analyst

Analyst Note

| Joshua Aguilar |

Nothing in wide-moat rated Rockwell Automation’s latest results materially alters our long-term view of the firm. Therefore, we maintain our $238 fair value estimate. For the fiscal third quarter, Rockwell outperformed the expectations embedded in our full-year fiscal 2021 projections for top-line growth, operating margins, and free cash flow, though our earnings expectations remain fairly unchanged. However, any good news in operating performance was offset in our model by the effect of our probability-adjusted view of U.S. corporate tax reform beginning in 2022.

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Company Profile

Business Description

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 Schlumberger.

Contact
1201 South Second Street
Milwaukee, WI, 53204
T +1 414 382-2000
Sector Industrials
Industry Specialty Industrial Machinery
Most Recent Earnings Jun 30, 2021
Fiscal Year End Sep 30, 2021
Stock Type Cyclical
Employees 23,500

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