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Fanuc Corporation

FANUF
59
Industrial - Machinery · Industrials
Price
$41.95
-0.97 (-2.26%)
Market Cap
$39.15B
Exchange
Other OTC
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

2.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 959.1M (2022) → 933.2M (2026)

Fanuc Corporation is a Japanese company that makes machines that control other machines. Its three main product lines are CNC systems (the computer brains inside machine tools that cut and shape metal), industrial robots (used on factory floors to weld, assemble, and move parts), and "ROBOMACHINE" factory equipment like drilling and injection-molding machines. Its biggest customers are manufacturers in the automotive and electronics industries worldwide.

Fanuc earns money by selling this hardware and the software and service contracts that go with it. It operates globally but is headquartered in Japan and generates a large share of revenue from Asia, particularly China, making it sensitive to swings in Chinese factory spending. Fanuc's moat comes from decades of engineering expertise, a reputation for extremely reliable products, and deep integration into customers' factory systems, which makes switching costly. The key growth driver is the long-term trend toward factory automation, but near-term results depend heavily on whether Chinese manufacturing investment recovers.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+13.3% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

5.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$983.3B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Fanuc Corporation is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
40.2%
Healthy — 40.2% gross margin
Operating Margin
23.9%
Excellent — 23.9% operating margin
ROCE
3.0%
Weak — 3.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+11.9%
Steady sales growth (11.9% YoY)
EPS YoY
+20.0%
Earnings growing fast (20.0% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
0%
Weak — only 0% of profit becomes cash
FCF Margin
0.0%
Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.2x
Attractive valuation — P/E 0.2

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
+0.0
GROWING
Earnings roughly flat

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Dividends

Dividend Yield
1.44%
Small dividend — 1.44% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-69.8%
Dividend cut (-69.8% YoY) — warning sign

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