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If you had invested $1000 in Rockwell Automation 10 years ago, you would have so much now

HHow much a stock’s price changes over time is an important factor for most investors. In addition to impacting your portfolio, price action can help you compare investment results across sectors and industries.

Another thing that can drive investing is fear of missing out, or FOMO. This is especially true for tech giants and popular consumer-facing stocks.

What if you invested in Rockwell Automation (ROK) ten years ago? Holding ROK for so long may not have been easy, but if so, how much would your investment be worth today?

The Rockwell Automation business in detail

With that in mind, let’s take a look at some of Rockwell Automation’s key business drivers.

Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. The company has a broad network in more than 100 countries. The United States generates approximately 50% of the company’s total sales. Outside the United States, the company’s primary markets are China, Canada, Mexico, Italy, the United Kingdom, Germany and Australia.

The company operates manufacturing facilities in the United States and several other countries. Manufacturing area was approximately 2.8 million square feet, 38% of which is in North America. Brands include Rockwell Automation, Allen-Bradley and Rockwell Software.

Effective in the first quarter of fiscal 2021, Rockwell Automation began reporting results based on three operating segments: Intelligent Devices, Software & Control and Lifecycle Services. This change simplifies its structure around key offerings, leverages its sharpened industry focus, and recognizes the growing importance of software in delivering value to customers.

The major markets served by the Company consist of discrete end markets (automotive, semiconductor and general industrial), which contributed approximately 25% of the Company’s revenue in the first quarter of fiscal 2022. Hybrid endmarkets such as food & beverage, life sciences, and home & personal care, among others, contributed about 45% of the company’s revenue in the first quarter of fiscal 2021, while processing endmarkets such as oil & gas, metals, chemicals, pulp & paper, to name a few to name a few, generated 30% of the company’s revenue in the first quarter of fiscal 2021.

The Intelligent Devices segment (48% of revenue in Q1 fiscal 2022) includes propulsion, motion, security, sensing, industrial components, and made-to-order products.

Software & Control (28% of revenue in Q1 fiscal 2021) includes control and visualization software and hardware, information software, and network and security infrastructure.

Lifecycle Services (24% of revenue in Q1 fiscal 2021) includes consulting, professional services and solutions, connected services and maintenance services, and the Sensia joint venture.

bottom line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little risk. So if you invested in Rockwell Automation a decade ago, you probably feel pretty good about your investment today.

According to our calculations, a $1,000 investment made in August 2012 would be worth $3,571.47 as of August 11, 2022, or a gain of 257.15%. Investors should keep in mind that this return does not include dividends but does include price appreciation.

The S&P 500, by comparison, is up 199.48% and gold prices are up 6.11% over the same period.

Analysts expect more upside potential for ROK.

Rockwell Automation’s earnings and sales for the third quarter of fiscal 2022 beat Zacks Consensus estimates and are up year over year. Its sales are bearing the brunt of supply chain challenges and cost inflation. Component shortages affect the supply of the company’s hardware and software products, solutions and services. Improved material flow from key suppliers over the next few quarters will improve component shipments over the next few quarters. Pricing measures to mitigate the impact of inflationary pressures will improve margin in fiscal 2022. Huge capital investments in many end markets coupled with increased automation and digital transformation will continue to support solid order levels. Adjusted earnings per share for fiscal 2022 are expected to be between $9.30 and $9.70, up 1% year over year at mid-year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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