Advantech Co Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
TWD 229.00 | Xxvlvsr | Qlllgssl |
Advantech Orders Slow, but Long-Term Runway Better With Subscriptions; FVE Slightly Increased
Business Strategy and Outlook
We think Advantech’s dominant position in the IPC industry and reputation for providing reliable products and after-sales services give it a head start in offering next-generation industrial solutions, interconnected equipment and "Internet of Things" services. We believe Advantech’s two-pronged strategy of developing Internet of Things platforms and investing in Internet of Things service firms, reinforces its commitment to integrating hardware and services, differentiating itself from peers. Advantech’s revenue CAGR until 2026 is projected at 13%, with 70% of growth to come from Asia’s growing demand for robotics and industrial automation, 20% from potential new business in the U.S. and the remaining 10% from IoT offerings.