Having established itself as a leader in multiple segments of the Japanese factory automation sector, Yaskawa Electric (OTCPK:YASKY)
is trying to repeat its success in China as that country increasingly
adopts automation. The company has done well thus far, but the cyclical
nature of the industry and its dependence upon customer capex (not to
mention forex exposure) have made for choppy share price performance
over the past five years.
The shares are now off
more than 10% from their recent high and look as though they could be
slightly undervalued. I'm not looking for exceptional revenue growth in
the coming years, but I do think the company can improve its margins and
continue to leverage its strong share in servomotors. If adoption of
servomotors, inverters, and robots can spread beyond today's core
markets (and if Yaskawa can broaden its horizons in robotics), there
could additional upside to sweeten the prospects.
Yaskawa's ADRs are not especially liquid. I would suggest that investors consider the Japan-listed shares instead.
Read more here:
Yaskawa Electric Leveraging The Automation Of China
No comments:
Post a Comment