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Is this Large Market Cap Stock target price reasonable for Rockwell Automation Inc. (NYSE:ROK)?

The company in question is, Rockwell Automation Inc. (NYSE:ROK) currently with a stock price of 117.69 (-0.11% today). The market cap for Rockwell Automation Inc. is 15342.07, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Rockwell Automation Inc. is 110.88. Currently Rockwell Automation Inc. is trading with a P/E of 20.89, and a forward P/E of 19.47. Average volume for Rockwell Automation Inc. is 803.4 and so far today it is 445600.

Performance in the last year for Rockwell Automation Inc. has been 12.89%. For EPS growth, Rockwell Automation Inc. has seen a growth of 3.10%, and is looking to grow in the next year to 2.37%. More long term stats show that EPS growth has been 14.80% over the last five years and could be 3.87% for the next five years. Rockwell Automation Inc. has seen sales growth quarter over quarter at -6.40%, with EPS growth quarter over quarter at -4.00%. The 20-day simple moving average is 1.27%, with the 200-day simple moving average coming to 9.14%.

Since the IPO date for Rockwell Automation Inc. on the 12/31/1981, Rockwell Automation Inc. has seen performance year to date to be 17.02%. With Rockwell Automation Inc. trading at 117.69, the dividend yield is 2.46%, and the EPS is 5.63.

So could Rockwell Automation Inc., be undervalued? Well as said before P/E is 20.89. The PEG is 5.4, P/S is 2.58 and the P/B is at 7.2. The P/cash is 6.31, with P/free cash flow at 28.8.

Rockwell Automation Inc. ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 2.1. This is with long term debt/equity at 0.72, and total debt/equity at 0.88.

In terms of margins, Rockwell Automation Inc. has a gross margin of 41.80%, an operating margin of 16.60% and a profit margin of 12.50%.Payout ratio for Rockwell Automation Inc. is 62.60%. Return on assets come to 11.40% with return on investment coming to 22.00%.

Insider ownership for Rockwell Automation Inc., is at 0.20% and institutional ownership comes to 76.70%. Outstanding shares are at 130.36. While shares float is 128.69. The float short is currently 4.46%, and short ratio is 7.14.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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