ROK - Embedded Expectations Analysis - 2018 08 08
Rockwell Automation, Inc. (ROK:USA) is currently trading near recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, while management is confident in their Connected Enterprise initiative and growth in their high-margin heavy industrials segmentSpecifically, management is confident that strong macro-tailwinds in industrial products will continue for the foreseeable future, driving demand higher in their high-margin heavy industrials business segment. Additionally, management is confident that their Connected Enterprise strategy will continue to drive strong results, and they raised their dividend by 10% as a result. Furthermore, they are confident that they will be able to continue strong growth across the spectrum in China, and that ABB's recent acquisition of B&R will not drastically increase competition. Finally, management generated an excitement marker when talking about their growth prospects in vertical markets, particularly within heavy industries
Rockwell Automation is a provider of industrial automation and digital transformation. The company's segments include: Architecture and Software, which contains automation and information platforms, including hardware and software; and Control Products and Solutions, which combines motor control and industrial control products, other solutions and a portfolio of lifecycle services. The company's automation platform products include programmable automation controllers, design, networking products, sensing devices, machine safety devices, motion control products, and independent cart technology products. The company's information platform includes manufacturing execution system software and analytics software.
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