Rockwell AutomationROK -2.30%78 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates ROK with a GF Score™ of 78/100 and a GF Value™ of $313.20 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,971 Industrial Products companies, Rockwell Automation ranks better than 99.97% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Rockwell Automation's annualized net income for the quarter that ended in Mar. 2026 was $1,404 Mil. Rockwell Automation's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-971 Mil. Therefore, Rockwell Automation's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Rockwell Automation's Return-on-Tangible-Equity or its related term are showing as below:
ROK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 63.95 Med: 82.21 Max: 87.95
Current: Negative Tangible Equity
During the past 13 years, Rockwell Automation's highest Return-on-Tangible-Equity was 87.95%. The lowest was 63.95%. And the median was 82.21%.
ROK's Return-on-Tangible-Equity is ranked better than 99.97% of 2971
companies
in the Industrial Products industry
Industry Median: 6.72
vs ROK: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Rockwell Automation Return-on-Tangible-Equity Related Terms
Rockwell Automation Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rockwell Automation's Return-on-Tangible-Equity 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-Equity Comparison
For the Specialty Industrial Machinery subindustry, Rockwell Automation's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rockwell Automation's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rockwell Automation's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Rockwell Automation (ROK) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rockwell Automation and its competitors. Over the past decade, Rockwell Automation's Return-on-Tangible-Equity has ranged from 63.95 to 87.95. According to the industry distribution chart, Rockwell Automation ranks #1 out of 2971 companies in the Industrial Products industry, placing it in the top 0%.
Is Rockwell Automation's Return-on-Tangible-Equity too high?
Rockwell Automation's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 63.95 to a high of 87.95. Based on the distribution chart, Rockwell Automation ranks #1 out of 2971 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-Equity compare to AME and IR?
According to the Industrial Products industry distribution chart, Rockwell Automation ranks #1 out of 2971 companies for Return-on-Tangible-Equity. This places Rockwell Automation in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Historically, Rockwell Automation's own Return-on-Tangible-Equity has ranged from 63.95 to 87.95 over the past decade. 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-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,971 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rockwell Automation and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rockwell Automation's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 $313.20, compared to a current price of $471.70 — trading 50.6% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Rockwell Automation (ROK), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 $471.70 is trading 50.6% above its estimated GF Value™ of $313.20.
GuruFocus considers Rockwell Automation to be Significantly Overvalued.
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
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