ROK
Rockwell Automation, Inc.
Industrials · Specialty Industrial Machinery · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 59.1/100 reflects a balance between strong momentum and dividend scores on one side, and weak growth performance on the other, with profitability providing a moderate positive contribution.
- The near-flat revenue growth of +0.9% and meaningful declines in net income (-8.8%) and EPS (-7.4%) weighed on the growth factor, pulling the overall score below a higher tier.
- The macro theme factor scored zero despite three relevant theme assignments, which weighed on the composite result alongside the subdued growth score.
Why Not Higher
- Revenue growth was nearly flat at +0.9% and both net income and diluted EPS declined meaningfully in FY2025, preventing a stronger growth score that would have lifted the composite.
- The theme factor contributed nothing to the composite under the model's current methodology despite Rockwell's alignment with Grid Modernization, Industrial Automation & Robotics, and Supply Chain Reshoring.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew modestly from FY2024 to FY2025, rising from $8,264,000,000 to $8,342,000,000, a gain of +0.9%. However, net income declined -8.8% over the same period (FY2024: $953,000,000 to FY2025: $869,000,000), and diluted EPS fell -7.4% from $8.28 in FY2024 to $7.67 in FY2025.
The model penalized the near-flat top-line growth and the meaningful contraction in both net income and earnings per share, resulting in a below-midpoint score that reflects limited overall growth momentum.
In FY2025, Rockwell Automation posted a net margin of 10.4%, an operating margin of 11.0%, and a return on assets of 7.7%.
These figures indicate a solidly profitable business with double-digit operating and net margins, and the model rewarded this level of profitability with an above-midpoint score, though there remains room for improvement relative to the highest-scoring peers.
Filing evidence currently available does not support a more specific explanation for this factor.
Over the last four reported quarters, operating income accelerated sharply from $342,000,000 in 2025Q3 to $440,000,000 in 2026Q2, with a notable dip to $63,000,000 in 2025Q4 followed by a strong recovery. Net income followed a similar pattern, rising from $295,000,000 in 2025Q3 to $350,000,000 in 2026Q2 after a trough of $138,000,000 in 2025Q4. Revenue also showed a recovery trend, moving from $2,144,000,000 in 2025Q3 to $2,239,000,000 in 2026Q2.
The model rewarded the clear sequential recovery and acceleration in both earnings and operating income across the most recent quarters, producing a high momentum score that reflects improving near-term financial performance.
Rockwell Automation has grown its dividends per share consistently from $4.48 in FY2022 to $4.72 in FY2023, $5.00 in FY2024, and $5.24 in FY2025. The dividend payout ratio in FY2025 stood at 68.0%.
The model rewarded the unbroken multi-year dividend growth streak, while the elevated payout ratio of 68.0% in FY2025 signals that a substantial portion of earnings is returned to shareholders, which may limit upside to the score given the reduced retained earnings buffer.
Rockwell Automation is assigned to the macro themes of Grid Modernization, Industrial Automation & Robotics, and Supply Chain Reshoring.
Although the company carries three relevant macro theme assignments, this alignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Rockwell Automation earned a composite score of 59.1/100 with a Medium risk rating and a 'Research Further' label, reflecting a mixed financial picture. Revenue grew only modestly from $8,264,000,000 to $8,342,000,000 (+0.9%) in FY2025, while net income declined -8.8% and diluted EPS fell -7.4%, limiting the growth score. Offsetting these headwinds, the company demonstrated strong sequential momentum in recent quarters—operating income accelerating to $440,000,000 in 2026Q2—and maintained a consistent multi-year dividend growth streak alongside solid double-digit operating and net margins.
Plain English
Rockwell Automation is a profitable industrial company that barely grew its sales last year and saw earnings slip, but its most recent quarters show a strong comeback in profits, and it keeps raising its dividend every year—making it a 'worth investigating further' kind of stock right now.
Bull Case vs. Bear Case
Bull Case
- Strong sequential earnings recovery: operating income surged from $63,000,000 in 2025Q4 to $440,000,000 in 2026Q2, and net income rose from $138,000,000 to $350,000,000 over the same span, signaling meaningful near-term momentum.
- Consistent dividend growth: dividends per share have risen every year from $4.48 in FY2022 to $5.24 in FY2025, demonstrating a reliable and growing income stream for shareholders.
- Solid profitability foundation: FY2025 net margin of 10.4%, operating margin of 11.0%, and return on assets of 7.7% reflect a durably profitable business capable of generating meaningful earnings.
Bear Case
- Weak top-line and bottom-line growth: revenue rose only +0.9% in FY2025 while net income fell -8.8% and diluted EPS dropped -7.4%, indicating limited overall growth momentum.
- Elevated dividend payout ratio: at 68.0% of net income in FY2025, the dividend consumes a large share of earnings, reducing the retained earnings buffer and potentially constraining financial flexibility.
- Theme alignment did not translate into a positive score under the model's current methodology, meaning the company's exposure to Grid Modernization, Industrial Automation & Robotics, and Supply Chain Reshoring did not contribute to the composite result.
What Could Change the Picture
Bullish Triggers
- Sustained acceleration in operating and net income beyond 2026Q2 levels would confirm that the recent recovery is durable rather than transitory, potentially lifting the growth and momentum assessments.
- A reduction in the dividend payout ratio—achieved through stronger net income growth—would signal improved earnings retention and financial flexibility.
Bearish Triggers
- A reversal of the recent quarterly earnings recovery, with operating income falling back toward the $63,000,000 trough seen in 2025Q4, would undermine the high momentum score that currently supports the composite.
- Continued contraction in net income and EPS beyond FY2025 levels would deepen concerns about the sustainability of the 68.0% dividend payout ratio.
Risk Profile
Medium RiskThe company carries a Medium risk rating, supported by a manageable debt-to-equity ratio of 0.72 and total assets of $11,219,000,000 in FY2025, though the sharp operating income dip to $63,000,000 in 2025Q4 before recovering to $440,000,000 in 2026Q2 illustrates that quarterly results can be volatile.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.