The robotics industry is poised for significant growth, driven by advancements in AI, automation, and increased adoption across manufacturing, healthcare, and logistics sectors. Therefore, we look into sound robotics stocks, such as Rockwell Automation, Inc. (ROK), Fanuc Corporation (FANUY), and UiPath Inc. (PATH), revolutionizing manufacturing.
The U.S. advanced robotics market is expected to grow with a CAGR of 19.5% by 2033. This expansion is driven by the growing adoption of automation across industries, the need to enhance productivity, and the rising demand for precision in manufacturing and healthcare. Government initiatives promoting technological advancement are boosting robotics research and development.
Additionally, there is a growing focus on the development of advanced AI and machine learning capabilities in robotics, which is expected to drive the growth of this market further. Revenue in robotics is expected to grow at a CAGR of 8.7% by 2029.
Considering these conducive trends, let’s examine the fundamentals of the three above-mentioned robotics stocks.
Rockwell Automation, Inc. (ROK)
ROK offers industrial automation and digital transformation solutions internationally. The company operates in three segments, Intelligent Devices; Software & Control; and Lifecycle Services. The company’s solutions include hardware and software products and services.
On November 20, ROK and Microsoft expanded their strategic collaboration aimed at revolutionizing industrial transformation. Under the partnership, the companies will provide manufacturing customers with advanced cloud and AI solutions.
The strategic partnership is aimed at delivering advanced cloud and AI solutions, empowering manufacturers with enhanced data insights, operational efficiency, and sustainable growth across the industry.
ROK reported sales of $2.04 billion for the fourth quarter that ended on September 30, 2024, and its gross profit was $770.60 million for the period. The company’s adjusted income and adjusted EPS came in at $281.90 million and $2.47 for the quarter, respectively.
Analysts expect ROK’s revenue and EPS for the fiscal year (ending September 2026) to increase 7.1% and 18.9% year-over-year to $8.79 billion and $11.18, respectively. Further, the company has topped the consensus EPS estimates in three of the trailing four quarters.
ROK’s stock has surged 1.6% over the past month and 10.5% over the past six months to close the last trading session at $287.69.
ROK’s outlook is reflected in its POWR Ratings. The stock has a B grade for Momentum and Quality. Within the A-rated Industrial - Machinery industry, ROK is ranked #74 among 79 stocks. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
Beyond what is stated above, we’ve also rated ROK for Growth, Sentiment, Stability, and Value. Get all ROK ratings here.
Fanuc Corporation (FANUY)
Headquartered in Yamanashi, Japan, FANUY provides factory automation products internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines.
FANUY’s trailing-12-month EBIT margin of 19.24% is 87.6% higher than the industry average of 10.26%. Its trailing-12-month EBITDA margin of 25.40% is 80.6% higher than the industry average of 14.06%. Also, its 18.05% trailing-12-month levered FCF margin is 170.8% higher than the industry average of 6.67%.
During the fiscal six months, which ended September 30, 2024, FANUY’s net sales amounted to ¥387.96 billion ($53.24 billion). The company’s operating income and net income for the period amounted to ¥75.59 billion ($10.37 billion) and ¥71.79 billion ($985.20 million), up 13.6% and 10.4% year-over-year, respectively.
Analysts expect FANUY’s revenue and EPS for the year quarter (ending March 2024) to increase 71.8% and 119.7% year-over-year to $5.25 billion and $0.10, respectively. Also, the company has topped the consensus revenue estimates in three of the trailing four quarters.
FANUY’s shares have plunged 2.4% over the past to close the last trading session at $12.83.
FANUY’s fundamentals are reflected in its POWR Ratings. It has a B grade for Momentum, Stability, and Quality. The stock is ranked #58 out of 79 stocks in the Industrial - Machinery industry.
Click here to access the additional FANUY ratings (Sentiment, Growth, and Value).
UiPath Inc. (PATH)
PATH provides an end-to-end automation platform that offers a range of Robotic Process Automation (RPA) solutions, primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization.
On October 23, PATH announced the transformation of operations for Omega Healthcare, a global leader in revenue cycle management, healthcare, and clinical enablement services, through its AI-powered automation. The partnership could position PATH as a frontrunner in AI-driven automation.
On October 22, PATH announced a strategic partnership with Inflection AI, an enterprise AI company, to introduce the UiPath Platform with the new Inflection for Enterprise solution that would result in achieving higher operational efficiency and effectiveness for enterprises.
PATH could reinforce its commitment to secure and efficient AI-driven solutions through this partnership, positioning itself as a leader in innovative enterprise automation.
For the fiscal third quarter that ended September 30, 2024, PATH’s revenue increased 20% year-over-year to $628 million. Its non-GAAP net income stood at $207 million and $0.41 per share, up 24% and 24.2% from the prior-year quarter, respectively.
Street expects PATH’s revenue for the fourth quarter (ending January 2025) to increase 5% year-over-year to $425.45 million. Its EPS for the current quarter is expected to be $0.19. Moreover, the company surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
PATH’s stock has soared 3.6% over the past month to close the last trading session at $12.97.
PATH’s POWR Ratings reflect its prospects. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. The stock has a B grade for Growth, Value, and Quality. It is ranked #8 out of 18 in the A-rated Software - SAAS industry.
Beyond what is stated above, we’ve also rated PATH for Momentum, Stability, and Sentiment. Get all PATH ratings here.
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ROK shares were trading at $284.41 per share on Thursday afternoon, down $3.28 (-1.14%). Year-to-date, ROK has declined -6.68%, versus a 25.11% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi Agarwal
Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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