Strong Semiconductor Demand Boosting Yaskawa Electric Beyond The Rising Industrial Tide

 

YASKAWA Electric's (OTCPK:YASKY) (6506.T) fiscal first quarter update earlier this month was a piece of welcome news for the industrial automation sector, as YASKAWA not only performed meaningfully better than expected, but management also upgraded its order, revenue, and profit guidance for the year. It remains to be seen whether industrial order momentum will peak around midyear as management now believes, but customers across a range of industries are definitely willing to make capital investments again.

I wasn't all that impressed with YASKAWA's value back in October of 2020, and though the ADRs have kept pace with the S&P 500 and the broader industrial sector since then, the shares have underperformed the likes of ABB (ABB) and Rockwell (ROK). While I do see the possibility of further upside to YASKAWA's recently-raised guidance, I see this as a momentum/cycle play and not much of a long-term value at these levels.

 

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Strong Semiconductor Demand Boosting Yaskawa Electric Beyond The Rising Industrial Tide