Although I thought Rotork (OTCPK:RTOXY) (ROR.L) had more upside on the cyclical recovery theme back in late May, the 25% move in the shares since then was frankly more than I expected, as Rotork and peers like Emerson (EMR), Weir (OTCPK:WEGRY), and SPX Flow (FLOW)
have seen strong moves on the emerging recoveries in process industries
like oil and gas. While Rotork's revenue hasn't come back yet (on an
organic basis), order growth has been strengthening and 2018 should be a
much better year.
The cyclical recovery is only
part of the story at Rotork, though. Margins have been weakening for a
while, and it appears that the company is finally ready to do something
about that. While a margin-boosting self-help program on top of a
cyclical recovery could certainly boost cash flows, a lot is already
baked into the share price.
Click here for more:
Rotork Needs To Add A Self-Improvement Kicker To Its Cyclical Recovery Story
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