Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>With Fanuc's stock price down 12% in the past two weeks, short-term profit taking may have run its course. . </li>
<li>Management has lowered FY Mar-26 profit guidance while raising sales guidance -  not a good sign. </li>
<li>Not cheap at 36x new EPS guidance, particularly since AI, which management touts as one of the company's strengths, is becoming an industry standard.</li>
</ul>


With Fanuc's stock price down 12% in the past two weeks, short-term profit taking may have run its course. . 
Management has lowered FY Mar-26 profit guidance while raising sales guidance -  not a good sign. 
Not cheap at 36x new EPS guidance, particularly since AI, which management touts as one of the company's strengths, is becoming an industry standard.


Fanuc (6954 JP): Sales Strong, Margins Slipping

Fanuc Corp

Fanuc (6954 JP): Sales Strong, Margins Slipping