Rockwell Automation

Methodology

Rockwell Automation's industrial automation solutions create earnings sensitivity to manufacturing capital spending and industrial production cycles. Software and services add some recurring revenue. Use normalized mid-cycle earnings rather than peak or trough conditions when manufacturing investment swings dramatically with economic cycles.

Methodology

Rockwell typically trades at premium PEG ratios reflecting market leadership in factory automation, software content growth, and installed base advantage. While expensive versus typical industrials, the technology positioning justifies valuations. Compare to automation peers like Emerson and Schneider while considering Rockwell's FactoryTalk software traction and lifecycle services growth.

Methodology

Rockwell offers a meaningful dividend with decades of increases, making PEGY important for total return evaluation. The dividend provides reliable income alongside cyclical earnings growth. For this industrial automation leader, dividend consistency matters as much as growth in attracting long-term investors despite capital goods cyclicality.