Japan Specialist

Mark Chadwick

Over 20 years experience in equities and asset management in Asia and Japan. Qualified CFA with experience analyzing companies as a buy-side analyst. In-depth knowledge of company fundamental analysis, corporate governance and valuations.

Fanuc (6954) | Profitability Problems Persist

Fanuc (6954) | Earnings Miss; Guidance Slashed

Fanuc (6954) | Forget FA, Robots Are the Future

Equity Bottom-Up

<ul>
<li>Q2 2023 results for FANUC Group showed a 3.7% decrease in consolidated net sales, a 24.5% drop in consolidated operating income, and mixed performance in its divisions.</li>
<li>Some positives: operating profit exceeding analyst expectations and an operating margin increase to 17.2%. However, declining robot orders, challenges in the US region, and high inventory remain concerns</li>
<li>We believe that the stock is currently trading around fair value (20x EV/EBIT). However, we still see risks to the downside given macro concerns</li>
</ul>


Q2 2023 results for FANUC Group showed a 3.7% decrease in consolidated net sales, a 24.5% drop in consolidated operating income, and mixed performance in its divisions.
Some positives: operating profit exceeding analyst expectations and an operating margin increase to 17.2%. However, declining robot orders, challenges in the US region, and high inventory remain concerns
We believe that the stock is currently trading around fair value (20x EV/EBIT). However, we still see risks to the downside given macro concerns


Fanuc Corp

Fanuc (6954) | Not Out of the Woods Yet