2024-04-02 08:18:26 ET
Summary
- Rockwell Automation’s revenue growth has been weighted toward more recurring streams in recent years, reflecting a strategic shift away from product sales. This is primed to deliver margin improvement.
- ROK is a market leader for automation and transformation within the industrials industry, positioning it well to benefit from tailwinds such as increased infrastructure spending.
- ROK is either acquiring or developing the expertise it needs to succeed in the technology-enabled future we are moving toward, protecting its competitive position and priming it for growth.
- We are currently unconvinced by ROK’s valuation, as while it suggests upside, it does not wholly value the execution risk associated with delivering margin improvement.
Introduction and thesis
Rockwell Automation ( ROK ) is a leading global provider of industrial automation and digital transformation solutions. Headquartered in Milwaukee, Wisconsin, the company serves a diverse range of industries, including automotive, food and beverage, pharmaceuticals, and oil and gas, among others.
With a history dating back to 1903, Rockwell Automation has established itself as a key player in the industrial automation sector, leveraging advanced technologies to optimize manufacturing processes and improve operational efficiency for its customers worldwide....
Read the full article on Seeking Alpha
For further details see:
Rockwell Automation: Transformational Decade Ahead For This Industry Leader