Rockwell Automation Inc (ROK) stock analysis

How has Rockwell Automation's share price moved?

Is Rockwell Automation undervalued? The value diligence check

Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.

• Margin of safety (DCF) -82.0%
• P/E vs. its own history 38.9x · near the expensive end Real range: 23.8x–45.5x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
• Wall St. analyst rating Buy · 3.67/5 33 analysts this month: 6 strong buy, 10 buy, 17 hold, 0 sell, 0 strong sell (Finnhub). Down from 3.70 last month.
• Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.71 · accruals −6.0% of assets · 118% of profit arrived as cash · stock comp 1.0% of revenue · share count −1.1% a year. From the latest 10-K (year to Sep 2025) - see the Earnings Quality Screener for how each check is scored.
• Shareholder yield (cash back to owners) +2.0% net Latest fiscal year (2025): dividends 1.3% + buybacks 0.9% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 22%. See Shareholder Yield Leaders.
• Capital needed to grow (See's test) $7.23 per $1 of new profit · Capital-hungry Operating profit $1.2B → $1.7B, capital needed $2.2B → $6.2B, 2016–2025 (3-year averages); return on capital now 28% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
• PEG (growth at a reasonable price) 2.37 · Well above fair P/E 38.9× ÷ 16.4% a year of growth behind it. 266th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
• Compounder lenses (4) 2 of 4 · misses capital-light, price Capital-light growth: not cleared (profit grew 1.5×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): not cleared (PEG 2.37, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
• Value trap check Clear
• Munger's Inversion Check 2 flags
• Standing vs. sector peers 2 of 7 measures above the median Compared with the 18 other electrical equipment stocks this site tracks: 2 in the top third, 1 in the bottom third.
• Dividend payout sustainability 0/6 · clean

How does Rockwell Automation compare with its peers?

2 of 7 measures sit above the median of the 18 other electrical equipment stocks tracked here, 2 in the top third and 1 in the bottom third.

• P/E ratiolower is cheaper · peer median 34.5× 38.9× –13th of 19
• Free-cash-flow yieldhigher is cheaper · peer median 3.4% 3.2% –12th of 19
• Return on equityhigher is better · peer median 20% 33% ✓6th of 19
• Net marginhigher is better · peer median 13.4% 13.4% –10th of 19
• Revenue growthhigher is better, year on year · peer median 13.0% 11.3% ✕14th of 19
• Debt / equitylower is safer · peer median 0.67 0.93 –13th of 19
• Dividend yieldamong dividend payers · peer median 0.73% 1.31% ✓4th of 14

Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.

What would Buffett & Lynch say?

Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.

Berkshire Hathaway's own filing

Which of the 8 value filters does Rockwell Automation pass?

• Market Cap > $25B $46.7B
• Trailing P/E < 25 38.93
• PEG Ratio < 1.5 2.37
• Price/Book < 8 13.38
• Price/Sales < 7 5.21
• EPS Growth YoY > -5% +40.0%
• vs 50-day MA (±12%) Not evaluated †
• vs 200-day MA (±12%) Not evaluated †

What is Rockwell Automation's margin of safety?

-98% on 2026-10-07 → -82% on 2026-10-23 (5 weekly readings).

Where is Rockwell Automation in its 52-week range?

What is the short interest in Rockwell Automation?

3,664,162 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.

What could go wrong with Rockwell Automation? Munger's inversion check

"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.

• Margin of safety, even in the bull case -8%
• Short interest under 5% of float 3.3%
• Passes most of the 6 fundamental filters 3/6 passed
• Price run-up backed by value, not just momentum +26% off 52wk low
• Debt/equity stable since 2016 0.76 → 0.72

Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.