Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 22 Sept 2026
ROK· Industrials
Rockwell Automation
Rockwell Automation's high valuation and declining EPS overshadow its strong sector-leading margins and ROIC.
Buffett fit
Partial fit
Owner
56
Durability
56
Management
57
Price
3
Score updated 23 Oct 2026 · analysis from 22 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Rockwell Automation would mean focusing on maintaining its sector-leading of 15.9% and leveraging its of 52.5%.
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Rockwell Automation's strong and consistent profitability suggest durability, but the -31.39% EPS max decline over five years raises concerns about earnings volatility.
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Management has slightly reduced the share count with a -0.72% CAGR over five years, and the yield is modest at 0.78%.
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The current of 45.9 and yield of 2.74% indicate a high valuation.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 1 of 15.9% is top-quintile in the Industrials sector.
- 2 of 52.5% exceeds the sector's top-quintile cutoff.
- 3 of 19.1% is strong within its industry.
- 4Interest coverage ratio of 11.6 indicates solid financial health.
Concerns
6- 1 of 45.9 suggests overvaluation relative to earnings growth.
- 2EPS CAGR of -9.94% over five years indicates declining earnings.
- 3Net debt/EBITDA ratio of 2.33 is above Buffett's comfort zone.
- 4Dividend CAGR of -8.61% raises questions about shareholder returns.
Price history
$424+32.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Rockwell Automation provides industrial automation and digital transformation solutions, operating in Intelligent Devices, Software & Control, and Lifecycle Services segments. It serves diverse markets including automotive, semiconductor, and eco-industrial sectors. The company generates revenue through hardware, software, and service sales, primarily via independent distributors. With a of 52.5%, Rockwell's unit economics are strong within its sector.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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