Long-time readers probably know that I haven’t been the biggest fan of Japan’s Fanuc (OTCPK:FANUY) over the years, as I believe the company has been slow to respond to changes in their end-markets and reposition the business accordingly. Even so, I find it curious that the shares have been as weak as they’ve been in 2021 in the face of improving orders and opportunities to leverage longer-term growth in factory automation.
Fanuc is far from my favorite name in automation, but I generally agree with the idea that there’s a “fair” price for any company with the wherewithal to remain competitive for the longer term. I do have some longer-term concerns about Fanuc that I’ll discuss in a moment, but with the shares appear to be at least 10% below fair value in a sector where companies don’t often get all that cheap, I do think this is worth a closer look.
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