Improving business sentiment worldwide, particularly in Asia, served as a tailwind for the shares of factory automation company Fanuc (TSE:6954, Financial). The stock has been very strong this year, more than doubling off its March lows, but we think the value Fanuc adds to manufacturing processes through its technologies— including computer numerical control, robots and cobots—positions the company to potentially deliver shareholder value over the long term. Having increased capacity substantially at the end of the last cycle, Fanuc appears to have latent earnings power that may be revealed once the new cycle fully blooms.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team's fourth-quarter 2020 commentary.
