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    Rockwell Automation (ROK): Valuation Check After New AI Autonomy Initiatives and 2025 Sustainability Report

    Simply Wall St·12/25/2025 09:29:35
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    Rockwell Automation (ROK) is back on investors radar after highlighting fresh progress in AI driven autonomous operations, alongside releasing its 2025 Sustainability Report, a combination that neatly ties growth, efficiency, and long term risk management.

    See our latest analysis for Rockwell Automation.

    Those AI and sustainability updates are landing at a time when momentum is clearly building, with Rockwell Automation’s share price up 17.11% over 90 days and a 41.77% year to date share price return contributing to a 38.51% one year total shareholder return.

    For investors who are interested in Rockwell’s blend of automation and AI, this could be a moment to explore other high growth tech and AI names using high growth tech and AI stocks to identify what else may fit within a given strategy.

    Yet with Rockwell now trading close to analyst targets and boasting a strong multiyear run, the key question is whether today’s price still leaves upside for new buyers or if the market is already discounting future growth.

    Most Popular Narrative: 2.3% Overvalued

    Compared with the most popular fair value estimate of $389.08, Rockwell Automation’s last close at $398.22 implies a modest valuation premium that hangs on execution.

    Substantial investment of $2 billion over the next 5 years in plants, digital infrastructure, and talent is aimed at building competitive capacity, operational efficiency, and supporting higher-margin growth areas, laying the groundwork for future margin expansion and long-term EPS growth. Sustained megatrends such as reshoring/nearshoring and manufacturing supply chain diversification (especially in North America and Europe, where Rockwell is strong) are leading to increased new capacity orders, which is expected to improve order intake and drive revenue visibility in coming years.

    Read the complete narrative.

    Want to see how steady mid single digit revenue growth, rising margins, and a premium earnings multiple combine to justify this near fully priced fair value? Discover the exact growth runway, profitability shift, and valuation bridge this narrative uses to argue that Rockwell can grow into its current price and beyond.

    Result: Fair Value of $389.08 (OVERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, delayed customer capex and rising tax headwinds could compress earnings, limiting Rockwell’s ability to meet the growth and margin assumptions embedded in this narrative.

    Find out about the key risks to this Rockwell Automation narrative.

    Build Your Own Rockwell Automation Narrative

    If you see the story differently or simply prefer to dig into the numbers yourself, you can build a personalized view in just minutes, Do it your way.

    A great starting point for your Rockwell Automation research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.