Stock fact sheet · data as of
Rockwell Automation, Inc. (ROK): fair value, margin of safety and Wheel Score
Industrials · Industrial - Machinery · United States · Blend
Is ROK undervalued?
At 423.42 (close of 16 Oct 2026), ROK trades 151% over the GLS average fair value of 168.71, with 0 of 9 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
The 9 models disagree widely: DDM gives 81.22 while Payback Time gives 329.02. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files ROK under Blend.
Nine valuation models for ROK
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 109.46 | -74% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 86.68 | -80% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 258.61 | -39% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 86.71 | -80% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 123.15 | -71% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 324.53 | -23% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 329.02 | -22% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 81.22 | -81% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 119.04 | -72% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -32.33 | -108% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 489.89 | +16% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health ROK scores 9/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.4 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 11.9%, ROE 23.8%, ROA 7.7% - with debt at 1.00 times equity and a free-cash-flow yield of 3.2%.
The dividend yield is 1.30% with a payout ratio of 51% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Intelligent Devices 47%, Software And Control 33%, Lifecycle Services 21% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 9 / 9 | ROIC | 11.9% |
|---|---|---|---|
| GLS Moat | 6.4 / 10 | ROE | 23.8% |
| Debt / equity | 1.00 | ROA | 7.7% |
| Free-cash-flow yield | 3.2% | Payout ratio | 51% |
| Institutions | 10 / 10 | Insiders · Congress | 3 · 1 / 10 |
Wheel Score 66: Good
ROK scores 66 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (20/20), the GLS moat (10/15), the option premium on offer (20/20) and how easily the stock trades (16/20). Value (0/25) is the part holding the score back.
Implied volatility is 39% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 14,935 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 690k shares a day on a market cap of $47.1B, with a beta of 1.50 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -151% margin of safety | |
| Health | 20 / 20 | Piotroski 9/9 | |
| Moat | 10 / 15 | moat 6.4/10 | |
| Premium | 20 / 20 | implied volatility 39% | |
| Stability | 16 / 20 | 690k shares/day, $47.1B cap, beta 1.50 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Industrial - Machinery
The 12 companies below are the closest to Rockwell Automation, Inc. by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CARR Carrier Global Corporation | 54.96 | 28.43 | -93% | 60Fair | $45.3B |
| PCAR PACCAR Inc | 108.56 | 79.18 | -37% | 58Fair | $57.1B |
| CMI Cummins Inc. | 532.73 | 439.26 | -21% | 66Good | $73.3B |
| IR Ingersoll Rand Inc. | 77.88 | 39.61 | -97% | 63Fair | $30.2B |
| ITW Illinois Tool Works Inc. | 271.19 | 140.19 | -93% | 57Fair | $77.2B |
| SYM Symbotic Inc. | 37.90 | 22.23 | -70% | 56Fair | $27.4B |
| OTIS Otis Worldwide Corporation | 70.40 | 64.55 | -9% | 69Good | $26.8B |
| DOV Dover Corporation | 194.09 | 124.42 | -56% | 61Fair | $26.1B |
| EMR Emerson Electric Co. | 162.15 | 83.20 | -95% | 66Good | $90.4B |
| XYL Xylem Inc. | 102.74 | 98.67 | -4% | 75Good | $24.0B |
| TT Trane Technologies plc | 471.29 | 305.07 | -54% | 62Fair | $103.7B |
| PH Parker-Hannifin Corporation | 956.32 | 522.10 | -83% | 71Good | $120.6B |
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Start free See the Sunday ScanQuestions about ROK
Is ROK undervalued right now?
No: at 423.42 the stock trades 151% above the GLS average fair value of 168.71 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of ROK and what does it mean?
ROK scores 66 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for ROK?
168.71 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Rockwell Automation, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does ROK have listed options, and how liquid are they?
Yes. The nightly snapshot found 852 listed contracts with 14,935 open interest across all expiries and implied volatility of 39% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.