Business Analysis of Rockwell Automation

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Rockwell Automation

ROCKWELL AUTOMATION

Business Overview

Rockwell Automation Inc. provides industrial automation and information solutions worldwide. It operates in two segments, Architecture & Software; and Control Products & Solutions. The Architecture & Software segment provides control platforms, including controllers, electronic operator interface devices, electronic input/output devices, communication and networking products, and industrial computers that perform multiple control disciplines and monitoring of applications, such as discrete, batch and continuous process, drives control, motion control, and machine safety control. This segment also offers software products that include configuration and visualization software, which is used to operate and supervise control platforms, process control software, and manufacturing execution systems and information solution software to enhance manufacturing productivity and meet regulatory requirements; and other products comprising sensors, machine safety components, and linear motion control products. The Control Products & Solutions segment offers low and medium voltage electro-mechanical and electronic motor starters, motor and circuit protection devices, AC/DC variable frequency drives, push buttons, signaling devices, termination and protection devices, relays, and timers; and various packaged solutions, such as configured drives and motor control centers to automation and information solutions. This segment also offers total life-cycle support services, including technical support and repair, asset management, training, maintenance, and safety and network consulting services. The company serves food and beverage, home and personal care, life sciences, automotive and tire, oil and gas, and mining and metal industries through independent distributors and direct sales force in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Rockwell Automation Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

Rockwell Automation

Rockwell Automation


R&P Rank: 451
Sector: Industrial Goods & Services
Industry:Electrical Components & Equipment
H.Q Location:Wisconsin
Website: www.rockwellautomation.com
Company Address:
1201 SOUTH 2ND STREET, MILWAUKEE WI 53204
Ph:414-382-2000

Business Analysis of Rockwell Automation

The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Rockwell Automation compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Rockwell Automation to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Rockwell Automation with an interactive chart.

  1. Revenue Growth: Rockwell Automation reported a revenue growth of -6.8% year-on-year during 2016. Electrical Components & Equipment Industry grew at -3.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Rockwell Automation spent 57.9% of its total revenues on COGS. Electrical Components & Equipment industry average (COGS share of revenue) in the same period was 69.6%
  3. R&D share of Revenues: Rockwell Automation R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Rockwell Automation spent 25.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Electrical Components & Equipment industry average SG&A spending in the same period was 17.0%
  5. Inventory share of Revenues: As a percentage of revenue, Rockwell Automation spent 9.0% of its total revenues on Inventories. Electrical Components & Equipment industry average Inventory spending in the same period was 13.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Rockwell Automation invested 9.2% of its total revenues on Accounts Payable (A/P) Electrical Components & Equipment industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Rockwell Automation invested 18.4% of its total revenues on Accounts Receivable (A/R). Electrical Components & Equipment industry average Accounts Receivable investment in the same period was 17.8%
  8. PP&E share of Revenues: As a percentage of revenue, Rockwell Automation invested 9.8% of its total revenues on Property, Plants, and Equipments (PP&E). Electrical Components & Equipment industry average PPE investment in the same period was 16.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Rockwell Automation invested 22.6% of its total revenues on Intangibles. Electrical Components & Equipment industry average Intangibles investment in the same period was 42.0%
  10. Net Margins: Rockwell Automation Net Margins in the year 2016 were 12.4%. Electrical Components & Equipment industry average Net Margins in the same period were 7.9%

Sector and Industry Association of Rockwell Automation

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Rockwell Automation is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Electrical Components & Equipment Industry.

Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:

  • Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
  • Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
  • Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
  • Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
  • Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.

Industry Ranking of Rockwell Automation

With $5.9 billion revenues, Rockwell Automation ranked number 6 of all the companies in the US Electrical Components & Equipment industry. There were a total of 33 public companies in the US Electrical Components & Equipment industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electrical Components & Equipment industry by revenues during 2016 were:

  1. Eaton Corp ($19.7 billion)
  2. Cummins ($17.5 billion)
  3. Emerson Electric ($14.5 billion)
  4. Anixter International ($7.6 billion)
  5. Amphenol ($6.3 billion)
  6. Rockwell Automation ($5.9 billion)
  7. General Cable ($3.9 billion)
  8. AMETEK ($3.8 billion)
  9. Hubbell ($3.5 billion)
  10. Regal Beloit ($3.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Rockwell Automationand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of rockwell-automation

Emerson Electric (EMR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Emerson Electric Co with $15 billion revenues in the year 2016 was the number 3 Electrical Components & Equipment company. Read this report to know the top competitors of Emerson Electric and identify growth and cost optimization opportunities of Emerson Electric

Anixter International (AXE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Anixter International Inc with $8 billion revenues in the year 2016 was the number 4 Electrical Components & Equipment company. Read this report to know the top competitors of Anixter International and identify growth and cost optimization opportunities of Anixter International

Amphenol (APH) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Amphenol Corp with $6 billion revenues in the year 2016 was the number 5 Electrical Components & Equipment company. Read this report to know the top competitors of Amphenol and identify growth and cost optimization opportunities of Amphenol

General Cable (BGC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

General Cable Corp with $4 billion revenues in the year 2016 was the number 7 Electrical Components & Equipment company. Read this report to know the top competitors of General Cable and identify growth and cost optimization opportunities of General Cable

AMETEK (AME) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AMETEK Inc with $4 billion revenues in the year 2016 was the number 8 Electrical Components & Equipment company. Read this report to know the top competitors of AMETEK and identify growth and cost optimization opportunities of AMETEK

Hubbell (HUBB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Hubbell Inc with $4 billion revenues in the year 2016 was the number 9 Electrical Components & Equipment company. Read this report to know the top competitors of Hubbell and identify growth and cost optimization opportunities of Hubbell

Revenues Analysis

Rockwell Automation (ROK) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Rockwell Automation Inc (ROK) from 2012 to 2016. Rockwell Automation generated a total of $5.9 billion revenues during 2016. Rockwell Automation reported a revenue growth of -6.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Rockwell Automation (ROK) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Rockwell Automation Inc (ROK) from 2002 to 2016. Rockwell Automation generated a total of $5.9 billion revenues during 2016. Rockwell Automation reported a revenue growth of -6.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Rockwell Automation (ROK) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Rockwell Automation Inc (ROK) revenue growth with Electrical Components & Equipment industry growth during the last five years from 2012 to 2016. Rockwell Automation reported a revenue growth of -6.8% year-over-year during 2016. The Electrical Components & Equipment industry growth was -3.6% year-over-year during 2016. Rockwell Automation growth was slower than the industry during 2016.