Rotork ROR.L
United KingdomIndustrials · Specialty Industrial MachineryLondon Stock Exchange · GBP
4.83 GBP (−1.5%)
9 analysts
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Rotork is a British manufacturer of actuators, valves and flow control systems for critical infrastructure in the water, energy, oil and gas, chemical and mining sectors, with a business model based on high-engineering products, high margins and recurring revenue from services and spares.
Listed on London Stock Exchange · Symbol ROR.L · LON: ROR · Currency GBP
Key points
from its scores- ✓Very solid balance sheet8.5
- ✓Good share-price trend8.5
- ✓High-quality business7.8
- ✕Demanding valuation3.8
- !Moderate growth5.6
AI analysis
bottom line, main risk, context and newsImpeccable quality and balance sheet, but the valuation already discounts most of the strengths; wait for a better entry point or a revenue growth catalyst.
Rotork combines excellent financial health (net cash, ND/EBITDA of -0.13) with superior quality (ROIC 28.24%, operating margin 21.89%), although its demanding valuation (P/E 32.68, EV/EBITDA 19.78) and flat revenue growth (-0.00%) limit the appeal at these prices; earnings growth of 19.50% and strong momentum (42.35%) support the long-term quality thesis.
The main risk is the demanding valuation (P/E 32.68) in an environment of rising long-term rates that compresses multiples of quality companies with moderate growth, along with dependence on the capex cycle of its industrial and energy clients.
Context and risks
Rotork has no material litigation, specific regulatory exposure, or relevant geopolitical concentration. Its flow control and actuator business for critical infrastructure (water, energy, oil and gas) has indirect exposure to the energy capex cycle, but without a regulatory or business model risk that justifies an additional adjustment over the already embedded beta.
Is Rotork stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 32% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 32.7 | 25.4 | +29% |
| EV / EBITDA | 19.8 | 14.5 | +36% |
| Price / book | 7.2 | 4.1 | +76% |
| Price / sales | 5.1 | 2.1 | +150% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.8 out of 10 (median for Industrials: 5.0).
Average analyst target: 4.83 GBP, −1.5% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.8 (sector 5.8), Growth 5.6 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 32.7
- Forward P/E
- 26.1
- EV / EBITDA
- 19.8
- Price / book
- 7.2
- Price / sales
- 5.1
- PEG
- 3.89
- Market cap
- 4.0B GBP
- Enterprise value
- 4.0B GBP
Profitability
- ROE
- 21.8%
- ROA
- 15.5%
- ROIC (approx.)
- 28.2%
- Gross margin
- 50.5%
- Operating margin
- 21.9%
- Net margin
- 15.7%
- Free cash flow
- 106.8M GBP
- FCF yield
- 2.7%
- Cash conversion
- 53%
Solvency
- Total debt
- 44.7M GBP
- Net debt
- −25.3M GBP
- Cash
- 70.0M GBP
- EBITDA
- 200.6M GBP
- Net debt / EBITDA
- −0.13
- Debt / equity
- 7.99
- Current ratio
- 2.54
- Quick ratio
- 1.83
Growth
- Revenue growth
- −0.0%
- Earnings growth
- +19.5%
- EPS (TTM)
- 0.15 GBP
- EPS (forward)
- 0.19 GBP
Dividend
- Dividend yield
- 1.6%
- Payout
- 56.1%
Risk and market
- Beta
- 1.06
- Analyst consensus
- Hold (9)
- Target price
- 4.83 GBP
Recent news
All ROR.L news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Rotork
Is Rotork stock cheap or expensive?
On P/E and EV / EBITDA, it trades 32% above the Industrials median on average. Valuation score: 3.8 out of 10 (median for Industrials: 5.0). Average analyst target: 4.83 GBP, −1.5% versus the price. This is not investment advice.
What score does Rotork get on MeridIAn Screener?
It scores 6.5 out of 10, rank 569 of 2,130 (better than 72% of the companies analysed). Its strongest category is Financial health (8.5) and its weakest, Valuation (3.8). Analysis of 08/10/2026.
What is Rotork's P/E ratio?
Its P/E is 32.7: the share price equals 32.7 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 26.1.
How much is Rotork worth on the stock market?
Its market capitalisation is 4.0B GBP and its enterprise value, debt included, is 4.0B GBP.
How much debt does Rotork have?
It has more cash than debt: net cash of 25.3M GBP.
Does Rotork pay a dividend?
Yes: its dividend yield is 1.63% and it pays out 56% of its earnings.
How has Rotork stock performed over the last year?
It has risen 44.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 4.89 GBP. Past performance does not guarantee future results.
What do analysts think of Rotork?
9 analysts cover it; their average recommendation is “Hold” and their average target is 4.83 GBP (−1.5% versus the price). It is an estimate, not market data.