Relative to what investors seem willing to pay for companies like Rockwell (ROK), Emerson (EMR), and Yaskawa Electric (OTCPK:YASKY), I'm starting to wonder if Schneider Electric (OTCPK:SBGSY)
isn't in some respects an overlooked contender in some attractive
markets. Not only is Schneider a leader in energy management (and with a
relatively attractive mix), but it is also a strong player in both
discrete and process automation and well-positioned for what looks to be
a growing convergence between hardware and software in automation.
Schneider
isn't exceptionally cheap, but in a market where many high-quality
industrial names are quite expensive, it still looks like an interesting
relative laggard on valuation. I'd really like to see a stronger ROIC
here, and I believe that at least partly explains the valuation, but
low-to-mid single-digit organic revenue growth can support a decent
return from here.
Continue here:
Schneider Has Put The Pieces In Place To Drive Higher-Value Growth
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