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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Rockwell Automation's Sloan Ratio for the quarter that ended in Mar. 2026 was -2.07%.
As of Mar. 2026, Rockwell Automation has a Sloan Ratio of -2.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Rockwell Automation (NYSE:ROK) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Rockwell Automation has a Sloan Ratio of -2.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Rockwell Automation Sloan Ratio % Related Terms
Rockwell Automation Sloan Ratio % Historical Data
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The historical data trend for Rockwell Automation's Sloan Ratio % 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.
For the Specialty Industrial Machinery subindustry, Rockwell Automation's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rockwell Automation's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rockwell Automation's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Rockwell Automation's Sloan Ratio for the fiscal year that ended in Sep. 2025 is calculated as
Rockwell Automation's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 295 (Jun. 2025 ) + 138 (Sep. 2025 ) + 305 (Dec. 2025 ) + 351 (Mar. 2026 ) = $1,089 Mil.
Rockwell Automation's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 527 (Jun. 2025 ) + 454 (Sep. 2025 ) + 234 (Dec. 2025 ) + 320 (Mar. 2026 ) = $1,535 Mil.
Rockwell Automation's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -43 (Jun. 2025 ) + -51 (Sep. 2025 ) + -69 (Dec. 2025 ) + -50 (Mar. 2026 ) = $-213 Mil.
* 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.
Rockwell Automation (ROK) has a Sloan Ratio % of -2.07% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Rockwell Automation and its competitors.
Is Rockwell Automation's Sloan Ratio % too high?
Rockwell Automation's current Sloan Ratio % is -2.07%. 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 Sloan Ratio % compare to AME and IR?
Rockwell Automation's Sloan Ratio % of -2.07% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Rockwell Automation and its competitors. Rockwell Automation's current Sloan Ratio % is -2.07%. 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 $314.28, compared to a current price of $480.08 — trading 52.8% above its estimated fair value. The current Sloan Ratio % is -2.07%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Rockwell Automation (ROK), the current Sloan Ratio % is -2.07% 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 $480.08 is trading 52.8% above its estimated GF Value™ of $314.28.
GuruFocus considers Rockwell Automation to be Significantly Overvalued.
Key valuation signals for ROK:
Sloan Ratio %: -2.07%
GF Value™: $314.28 vs. price of $480.08 (52.8% above fair value)
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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