# Rotork (ROR.LSE)

Canonical: https://gigainvestors.com/s/ROR.LSE

Analysis as of: 2026-10-16T07:37:22.441Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 492.60 per share; close as of 2026-10-15.

Estimated value: low GBX 190.45 per share, central GBX 231.02 per share, high GBX 268.47 per share. Buy at or below the central value GBX 231.02 per share. Valuation as of 2026-10-16T07:37:22.441Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.16×

- FY2018: 0.18×

- FY2019: 0.20×

- FY2020: 0.20×

- FY2021: 0.20×

- FY2022: 0.21×

- FY2023: 0.21×

- FY2024: 0.18×

- FY2025: 0.24×

### moat: pass

- ROIC, median of available years: 41.6%

- ROIC, second-lowest year: 28.9%

- Typical minus recent gross margin: -2.9 pp

- Typical gross margin (annual median): 46.4%

- Recent gross margin (lower of latest and 3-year median): 49.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 21.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 28.8%

- FY2017: 28.9%

- FY2018: 39.6%

- FY2019: 48.0%

- FY2020: 53.6%

- FY2021: 41.9%

- FY2022: 40.5%

- FY2023: 44.0%

- FY2024: 41.3%

- FY2025: 47.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 526M

- Net income, five-year total: GBP 506M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.3 pp

- Working capital / revenue, final three-year average: 27.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.06×

- FY2022: 1.09×

- FY2023: 1.03×

- FY2024: 0.96×

- FY2025: 1.06×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 28.9% vs 44.0%

- Per-share earnings: 0.07 to 0.13 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.5%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: GBP 366M

- Cumulative retained earnings: GBP 171M

- Diluted shares, 10-year annual growth: -1.5%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.4%

- Per-share value change: GBP 0.06

- Per-share value, starting three-year median: GBP 0.07

- Per-share value, ending three-year median: GBP 0.13

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.7%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 256M

- Cumulative net income, 10 years: GBP 900M

- ROIC, first three-year median: 28.9%

- ROIC, last three-year median: 44.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.07

- FY2017: GBP 0.06

- FY2018: GBP 0.11

- FY2019: GBP 0.11

- FY2020: GBP 0.10

- FY2021: GBP 0.09

- FY2022: GBP 0.11

- FY2023: GBP 0.13

- FY2024: GBP 0.12

- FY2025: GBP 0.14

### accounting: pass

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 1.28×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.47×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.6%

- FY2017: -6.8%

- FY2018: -3.4%

- FY2019: -8.3%

- FY2020: -6.8%

- FY2021: -0.8%

- FY2022: 4.6%

- FY2023: -1.5%

- FY2024: -5.8%

- FY2025: -1.3%

## Holders

## Price story

Price needs cash profits to grow 12.7% a year for ten years · sales +3%

Story as of 2026-10-16T10:00:09.013Z; price observation 2026-10-15.

Price needs cash profits to grow 12.7% a year for ten years

### Sales · FY2024–2025

sales +3%; source https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml; observed 2026-04-07.

- FY2016: GBP 590M 

- FY2017: GBP 642M 

- FY2018: GBP 696M 

- FY2019: GBP 669M 

- FY2020: GBP 605M 

- FY2021: GBP 569M 

- FY2022: GBP 642M 

- FY2023: GBP 719M 

- FY2024: GBP 754M 

- FY2025: GBP 777M 

### Gross margin · FY2025

gross margin 49.2%; source https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml; observed 2026-04-07.

- FY2016: 44.3% 

- FY2017: 44.2% 

- FY2018: 44.8% 

- FY2019: 46.6% 

- FY2020: 47.0% 

- FY2021: 46.2% 

- FY2022: 45.5% 

- FY2023: 47.2% 

- FY2024: 49.3% 

- FY2025: 49.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are GBP 777.3 million.

- Source: https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: revenue 777300000; grossProfit 382700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ROR.LSE: Rotork plc manufactures industrial flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical process, and industrial markets. It operates through three segments: Oils & Gas; Water & Power; and Chemical, Process & Industrial segments. The company provides electric industrial, electric intelligent, electro-hydraulic, heavy and light duty fluid, and precision modulating actuators; and flow pressure control and filtration, gearbox accessories, master station, networks and protocols, multi-turn gearboxes, valve positioners and controllers, part-turn gearboxes, HVAC actuators and sensors, instrumentation valves, electrical instrumentation, and limit switches and position transmitters. It also provides integrated ethernet, packaged solutions, carbon capture and storage, hydrogen industrial gases, desalination, and methane emissions reduction solutions. The company offers its products under the Bifold, Centork, Fairchild, Hanbay, Mastergear, Midland, M&M International, Remote Control, RotoHammer, Schischek, Soldo Controls, and YTC brand names. It operates in the United Kingdom, the Asia Pacific, the United States, Europe, the Middle East, Africa, and internationally. Rotork plc was founded in 1956 and is headquartered in Bath, the United Kingdom.

### Why customers stay

Margins ranged from 47.2% to 49.3% during 2023–25; it earns 41.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2023: grossProfit / revenue = 47.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2024: grossProfit / revenue = 49.3%.

- Source: https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: grossProfit / revenue = 49.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); 10-year return on capital observations [[2016,0.287867433446504],[2017,0.2889159794589705],[2018,0.3960931408552095],[2019,0.4802537262286742],[2020,0.5360392281075215],[2021,0.4188731994225613],[2022,0.4050084199192106],[2023,0.4404386440555326],[2024,0.4126326412892425],[2025,0.47670801217195197]]; median 0.4157529203559019. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 45% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml (filed 2026-04-07); Gross margin observations: [[2021,0.4616733431723944],[2022,0.4545458794787259],[2023,0.47152332614892584]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 62.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2016: growth capex 0; upkeep 14692000; owner earnings 93277000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2017: growth capex 0; upkeep 12457000; owner earnings 85270000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2018: growth capex 0; upkeep 10430000; owner earnings 115815000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2019: growth capex 0; upkeep 19243000; owner earnings 110796000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2020: growth capex 0; upkeep 26577000; owner earnings 90566400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2021: growth capex 0; upkeep 20150000; owner earnings 84703800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2022: growth capex 0; upkeep 12898000; owner earnings 102005800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2023: growth capex 0; upkeep 11806000; owner earnings 116940600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); FY2024: growth capex 0; upkeep 19945000; owner earnings 99228200. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: growth capex 0; upkeep 9400000; owner earnings 122860000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Dividend observations: [[2016,43876000],[2017,45218000],[2018,48288000],[2019,52287000],[2020,33926000],[2021,75515000],[2022,55384000],[2023,58820000],[2024,63265000],[2025,66599999]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml (filed 2026-04-07); FY2025: cash repurchases 62600000 GBP.

### Are managers owners

Insiders own 2.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ROR.LSE SharesStats.PercentInsiders = 2.461 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.7% yearly over ten years; actual growth was 4.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Ten-year compound average after fade. Initial solved rate 0.227481133924058. Price 492.6; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.09619291944586968 → FY2025 0.14717791205263234. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 204.00 per share

- 2016-11: GBX 234.50 per share

- 2016-12: GBX 241.20 per share

- 2017-01: GBX 255.40 per share

- 2017-02: GBX 247.00 per share

- 2017-03: GBX 243.30 per share

- 2017-04: GBX 245.90 per share

- 2017-05: GBX 235.60 per share

- 2017-06: GBX 235.40 per share

- 2017-07: GBX 231.50 per share

- 2017-08: GBX 229.20 per share

- 2017-09: GBX 260.40 per share

- 2017-10: GBX 262.70 per share

- 2017-11: GBX 258.60 per share

- 2017-12: GBX 266.90 per share

- 2018-01: GBX 295.50 per share

- 2018-02: GBX 295.00 per share

- 2018-03: GBX 284.30 per share

- 2018-04: GBX 329.00 per share

- 2018-05: GBX 333.70 per share

- 2018-06: GBX 334.70 per share

- 2018-07: GBX 359.90 per share

- 2018-08: GBX 338.00 per share

- 2018-09: GBX 330.50 per share

- 2018-10: GBX 299.80 per share

- 2018-11: GBX 262.20 per share

- 2018-12: GBX 247.60 per share

- 2019-01: GBX 274.80 per share

- 2019-02: GBX 284.50 per share

- 2019-03: GBX 282.80 per share

- 2019-04: GBX 311.90 per share

- 2019-05: GBX 287.50 per share

- 2019-06: GBX 316.60 per share

- 2019-07: GBX 308.50 per share

- 2019-08: GBX 309.60 per share

- 2019-09: GBX 311.50 per share

- 2019-10: GBX 301.40 per share

- 2019-11: GBX 327.80 per share

- 2019-12: GBX 335.00 per share

- 2020-01: GBX 304.30 per share

- 2020-02: GBX 281.60 per share

- 2020-03: GBX 215.10 per share

- 2020-04: GBX 248.60 per share

- 2020-05: GBX 265.80 per share

- 2020-06: GBX 280.00 per share

- 2020-07: GBX 279.60 per share

- 2020-08: GBX 299.80 per share

- 2020-09: GBX 282.20 per share

- 2020-10: GBX 281.00 per share

- 2020-11: GBX 298.40 per share

- 2020-12: GBX 318.00 per share

- 2021-01: GBX 325.60 per share

- 2021-02: GBX 356.80 per share

- 2021-03: GBX 356.60 per share

- 2021-04: GBX 344.60 per share

- 2021-05: GBX 337.60 per share

- 2021-06: GBX 340.40 per share

- 2021-07: GBX 360.60 per share

- 2021-08: GBX 333.60 per share

- 2021-09: GBX 348.80 per share

- 2021-10: GBX 354.20 per share

- 2021-11: GBX 340.20 per share

- 2021-12: GBX 357.20 per share

- 2022-01: GBX 338.00 per share

- 2022-02: GBX 308.60 per share

- 2022-03: GBX 326.40 per share

- 2022-04: GBX 292.80 per share

- 2022-05: GBX 279.40 per share

- 2022-06: GBX 240.60 per share

- 2022-07: GBX 260.00 per share

- 2022-08: GBX 246.80 per share

- 2022-09: GBX 234.20 per share

- 2022-10: GBX 256.20 per share

- 2022-11: GBX 299.00 per share

- 2022-12: GBX 306.60 per share

- 2023-01: GBX 318.00 per share

- 2023-02: GBX 324.00 per share

- 2023-03: GBX 314.80 per share

- 2023-04: GBX 327.00 per share

- 2023-05: GBX 321.00 per share

- 2023-06: GBX 304.80 per share

- 2023-07: GBX 308.40 per share

- 2023-08: GBX 301.00 per share

- 2023-09: GBX 312.60 per share

- 2023-10: GBX 292.80 per share

- 2023-11: GBX 308.20 per share

- 2023-12: GBX 323.60 per share

- 2024-01: GBX 313.40 per share

- 2024-02: GBX 308.40 per share

- 2024-03: GBX 328.80 per share

- 2024-04: GBX 323.40 per share

- 2024-05: GBX 338.40 per share

- 2024-06: GBX 336.80 per share

- 2024-07: GBX 361.80 per share

- 2024-08: GBX 333.20 per share

- 2024-09: GBX 333.40 per share

- 2024-10: GBX 300.40 per share

- 2024-11: GBX 333.20 per share

- 2024-12: GBX 313.80 per share

- 2025-01: GBX 349.40 per share

- 2025-02: GBX 327.00 per share

- 2025-03: GBX 313.40 per share

- 2025-04: GBX 304.00 per share

- 2025-05: GBX 314.60 per share

- 2025-06: GBX 321.20 per share

- 2025-07: GBX 325.60 per share

- 2025-08: GBX 344.20 per share

- 2025-09: GBX 339.00 per share

- 2025-10: GBX 342.20 per share

- 2025-11: GBX 336.60 per share

- 2025-12: GBX 325.40 per share

- 2026-01: GBX 353.60 per share

- 2026-02: GBX 385.80 per share

- 2026-03: GBX 312.60 per share

- 2026-04: GBX 308.80 per share

- 2026-05: GBX 306.60 per share

- 2026-06: GBX 295.40 per share

- 2026-07: GBX 486.20 per share

- 2026-08: GBX 485.00 per share

- 2026-09: GBX 489.00 per share

- 2026-10: GBX 492.60 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 158.55 per share, central GBX 228.95 per share, high GBX 268.21 per share

- FY2017: low GBX 152.78 per share, central GBX 194.03 per share, high GBX 225.81 per share

- FY2018: low GBX 161.01 per share, central GBX 181.73 per share, high GBX 209.31 per share

- FY2019: low GBX 173.19 per share, central GBX 217.68 per share, high GBX 252.48 per share

- FY2020: low GBX 144.73 per share, central GBX 162.17 per share, high GBX 185.39 per share

- FY2021: low GBX 125.08 per share, central GBX 140.76 per share, high GBX 161.65 per share

- FY2022: low GBX 141.24 per share, central GBX 159.08 per share, high GBX 182.84 per share

- FY2023: low GBX 168.25 per share, central GBX 191.84 per share, high GBX 220.81 per share

- FY2024: low GBX 160.79 per share, central GBX 180.78 per share, high GBX 207.38 per share

- FY2025: low GBX 190.60 per share, central GBX 230.18 per share, high GBX 266.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800AH5RZIHGWRJ718/2025-12-31/ESEF/GB/0/213800AH5RZIHGWRJ718-2025-12-31/reports/213800AH5RZIHGWRJ718-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-04-07.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.