Fanuc (OTCPK:FANUY) (6954) is a pretty remarkable company and a testament to the value of figuring out those things you do very well and then just doing those things. There are good reasons that Fanuc is the global leader in factory automation equipment like CNC systems, robots, and controlled machine tools. Likewise, operating margins in the 30%'s don't come by accident, nor do returns on capital consistently ahead of the cost of capital.
All of that said, I can't love the stock right now. Yes, I own ABB (NYSE:ABB) shares and I'm sure there will be aficionados of lead paint lollipops to accuse me of talking down Fanuc because that will somehow "help" ABB. But the fact remains that capex investment related to smartphones is still soft, China is increasingly looking to homegrown automation solutions, and even growth assumptions in excess of what I project for ABB aren't enough to drive a compelling fair value for this industrial technology company.
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Even As China Looks Toward Automation, FANUC Seems Pricey