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FANUY - Fanuc


hyten1

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I am much more familiar with their products then their finances, having purchased and installed their industrial robots and machines. As well as using their control equipment on machining equipment. Our factory pretty well insists on Fanuc controls as everyone is well versed in them and this minimizes retraining.

 

I believe they have something of a moat similar to Microsoft office products. People tend to stick with that they are familiar with rather than learn something new. I don't believe they have any great technological edge, I know of other companies that have good products that match up well.

 

I'm going to read the annual report and see if I can learn something about their financials.

 

 

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anyone follow this one? massive amount of cash/dividend. world class/dominating biz in its field.

 

http://www.fanuc.co.jp/en/ir/pdf/annualreport2013_e.pdf

 

 

hy

 

Fanuc is a large holding for First Eagle - you might want to listen to these interviews with Matt McLennan.

In the first one, he talks about Fanuc somewhere after the middle. Discusses the moat, etc.

 

http://blip.tv/WealthTrackSyndication/matthew-mclennan-6364759

 

He also gives a quick update on competitive position and comments on valuation in this 2nd interview:

 

http://wealthtrack.com/special-series/great-investors-series/matt-mclennan-the-mirage-recovery/

 

 

 

 

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  • 1 year later...

It's funny how a company designing and manufacturing robots is now suffering from high personnel costs.

 

http://www.bloomberg.com/news/articles/2015-07-29/fanuc-slumps-after-cutting-profit-target-on-weaker-china-outlook

 

Would be funny, since the previous article claimed its own factories are also automated.

 

But I don't see any reference to "high personnel costs" in the article you linked. Any other reference?

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  • 3 weeks later...

It's funny how a company designing and manufacturing robots is now suffering from high personnel costs.

 

http://www.bloomberg.com/news/articles/2015-07-29/fanuc-slumps-after-cutting-profit-target-on-weaker-china-outlook

 

I did not find 'high personnel costs' in linked article either. But it is mentioned in another article, also about Fanuc's latest quarter results:

http://www.afr.com/technology/fanuc-is-a-cheerless-chappie-20150729-ginh2u

 

 

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It's funny how a company designing and manufacturing robots is now suffering from high personnel costs.

 

http://www.bloomberg.com/news/articles/2015-07-29/fanuc-slumps-after-cutting-profit-target-on-weaker-china-outlook

 

I did not find 'high personnel costs' in linked article either. But it is mentioned in another article, also about Fanuc's latest quarter results:

http://www.afr.com/technology/fanuc-is-a-cheerless-chappie-20150729-ginh2u

 

Thanks.

 

I'd argue that "high personnel costs" was just a cheap shot by the journalist. He pretty much admits it himself.

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Seems pretty pro-cyclical. Revenue fell ~40% 2008 -> 2010. I guess it depends on where you think we are in the cycle, or you take a real long term view.

 

The cycle may not be that import if you look at the numbers in another way:

1. Fanuc has been continuously profitable all through the credit crisis and it's aftermath. While f.e. it's competitor Kuka had serious losses in 2009.

2. One year later, 2011, Fanuc was pretty much back at it's revenue of 2008. So you do not have to be that patient.

 

I have spent some time studying Fanuc and it's competitor Kuka. I think Fanuc is an amazing company and that the current price is cheap. I am curious to hear insights especially about the robot market in general and Fanuc's competitors.

 

Fanuc has grown 7% cagr since the peak revenue in 2008, they have been continuously profitable, a roic of over 30% most of the time and an enormous market potential to continue their growth. So, this company has a proven track record of value-creating growth and good prospects for more growth.

 

The risk would be that China is an important market for Fanuc and everybody is worried about China: this explains the drop in the last month. But Fanuc has substantially grown in Europe and America as well. There is more than just China.

 

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Fanuc is a large holding for First Eagle - you might want to listen to these interviews with Matt McLennan.

In the first one, he talks about Fanuc somewhere after the middle. Discusses the moat, etc.

 

http://blip.tv/WealthTrackSyndication/matthew-mclennan-6364759

 

The blip.tv site is gone. Any idea which episode it was?

 

http://wealthtrack.com/special-series/great-investors-series/matt-mclennan-the-mirage-recovery/

 

You can also search the Wealthtrack site with keyword Fanuc. Some older episode videos are now transcript or audio only.

 

http://wealthtrack.com/tag/fanuc/

 

http://wealthtrack.com/season-09/matt-mclennan-913/

 

 

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