Rockwell: Mature Business With Solid Free Cash Flows

Davide Zappa
740 Followers
(17min)

Summary

  • Rockwell Automation stock is currently trading around their fair market price.
  • The company focuses on rewarding shareholders with dividends and buybacks rather than seeking high growth rates.
  • ROK is expected to maximize return from existing assets, improve margins, and generate solid free cash flow for shareholders.
  • Rockwell’s risk-reward profile has the potential to generate a positive return - implied return of 8.5%.
2020: Rockwell Automation Canada Ltd corporate office is shown in Cambridge, On, Canada

JHVEPhoto

Executive Summary

Rockwell Automation (NYSE:ROK) stocks are currently trading around their fair market price.

Rockwell has long entered its mature phase, pivoting its focus on rewarding shareholders with both consistent dividends and share buyback rather than reinvesting its profits to seek

This article was written by

740 Followers
Davide Zappa uses a fundamental approach based on industry-level data to value growth stocks. Davide is also the founder of BlackNote Investment, an equity research platform providing free access to industry-level data such as industry growth rates, equity risk premiums, country growth rates, industry beta, as well as detailed industry reports, to support retail investors and professional analysts in their daily activities.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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