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Rockwell AutomationROK -1.83%78 Return-on-Tangible-Asset is 21.15% as of Mar. 2026, which is 47% above its 10-year median of 14.38. GuruFocus rates ROK with a GF Score™ of 78/100 and a GF Value™ of $313.78 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,074 Industrial Products companies, Rockwell Automation ranks better than 95.48% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Rockwell Automation's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,404 Mil. Rockwell Automation's average total tangible assets for the quarter that ended in Mar. 2026 was $6,639 Mil. Therefore, Rockwell Automation's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 21.15%.
The historical rank and industry rank for Rockwell Automation's Return-on-Tangible-Asset or its related term are showing as below:
ROK'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.9 Med: 14.38 Max: 24.03
Current: 16.97
During the past 13 years, Rockwell Automation's highest Return-on-Tangible-Asset was 24.03%. The lowest was 9.90%. And the median was 14.38%.
ROK's Return-on-Tangible-Asset is ranked better than 95.48% of 3074
companies
in the Industrial Products industry
Industry Median: 3.24
vs ROK: 16.97
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Rockwell Automation Return-on-Tangible-Asset Related Terms
Rockwell Automation Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Rockwell Automation's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ROK vs AME, IR, DOV: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Rockwell Automation's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rockwell Automation Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rockwell Automation's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Rockwell Automation's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 21.15% mean?
Rockwell Automation (ROK) has a Return-on-Tangible-Asset of 21.15% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Rockwell Automation and its competitors. This is 47% above median its historical median of 14.38. Over the past decade, Rockwell Automation's Return-on-Tangible-Asset has ranged from 9.90 to 24.03. According to the industry distribution chart, Rockwell Automation ranks #139 out of 3074 companies in the Industrial Products industry, placing it in the top 4.5%.
Is Rockwell Automation's Return-on-Tangible-Asset too high?
Rockwell Automation's current Return-on-Tangible-Asset of 21.15% is 47% above median its 10-year median of 14.38. Over the past 10 years, this metric has ranged from a low of 9.90 to a high of 24.03. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Rockwell Automation's value of 21.15% is 552.8% above this industry median. Based on the distribution chart, Rockwell Automation ranks #139 out of 3074 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Rockwell Automation has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rockwell Automation's Return-on-Tangible-Asset compare to AME and IR?
According to the Industrial Products industry distribution chart, Rockwell Automation ranks #139 out of 3074 companies for Return-on-Tangible-Asset. This places Rockwell Automation in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Rockwell Automation's value of 21.15% is 552.8% above this benchmark. Historically, Rockwell Automation's own Return-on-Tangible-Asset has ranged from 9.90 to 24.03 over the past decade. While the company's 10-year median is 14.38 vs. the industry median of 3.24, Rockwell Automation has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,074 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rockwell Automation's current Return-on-Tangible-Asset of 21.15% is 552.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Rockwell Automation and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rockwell Automation's current Return-on-Tangible-Asset is 21.15%, which is 47% above median its own 10-year median of 14.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rockwell Automation stock overvalued right now?
Based on GuruFocus' analysis, Rockwell Automation (ROK) is currently considered Significantly Overvalued. The stock's GF Value™ is $313.78, compared to a current price of $461.17 — trading 47% above its estimated fair value. The current Return-on-Tangible-Asset is 21.15%, which is 47% above median its 10-year median of 14.38 and 552.8% above the Industrial Products industry median of 3.24. Rockwell Automation's overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Rockwell Automation (ROK), the current Return-on-Tangible-Asset is 21.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rockwell Automation (ROK) Overvalued in 2026?
Based on GuruFocus' analysis, Rockwell Automation stock appears to be overvalued.
The current stock price of $461.17 is trading 47% above its estimated GF Value™ of $313.78.
GuruFocus considers Rockwell Automation to be Significantly Overvalued.
Key valuation signals for ROK:
Return-on-Tangible-Asset: 21.15% (47% above median its 10-year median of 14.38)
GF Value™: $313.78 vs. price of $461.17 (47% above fair value)
Industry Position: 552.8% above the Industrial Products median (#139 of 3074)
No single metric tells the full story. See the ROK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With roots tracing back to the early 1900s, Rockwell Automation is the successor to Rockwell International, which spun off its avionics segment in 2001. It is a pure-play industrial automation company that operates through three segments. Its largest segment by revenue, intelligent devices, sells factory floor-level devices such as motors, drives, sensors, relays, and actuators. Its software and control segment sells visualization, simulation, and human-machine interface software and control products such as programmable controllers, computers, and operator terminals. Its smallest segment, lifecycle services, offers digital consulting, engineered-to-order services, and other outsourced services such as remote monitoring, cybersecurity, and asset and plant maintenance and optimization.
78GF Score
Get the complete analysis for ROK
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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