Investors in Rockwell Automation (NYSE:ROK) have seen impressive returns of 135% over the past five years. The share price of the company has risen 114% in the same period, with a 16% increase in the last month. While share prices reflect investor sentiment, not just underlying business performance, Rockwell Automation has achieved compound earnings per share (EPS) growth of 23% per year. This is more impressive than the yearly share price gain of 16%, suggesting that the broader market has become more cautious towards the stock. The company’s total shareholder return (TSR) for the last five years was 135%, exceeding the share price return. Dividend payments largely explain the divergence. Rockwell Automation provided a TSR of 22% over the last twelve months, better than the average annual return of 19% per year over five years. While this indicates that the company is winning over new investors, it is important to consider other factors that may impact share prices. Rockwell Automation is showing one warning sign in their investment analysis. Ultimately, investors should conduct further research and consider other investment opportunities.
