Epiroc, Inficon, Lincoln Electric, Sika, Yiheda Automation and Zebra Technologies Using Automation to Support Durable Growth
EDINBURGH, Scotland, March 18, 2025 /PRNewswire/ -- With significant demographic change afoot and technology breakthroughs, automation has become increasingly critical in solving for labor shortages, enhancing productivity and supporting sustainability, according to Stewart Investors, a long-only active global equity specialist.
Stewart Investors, which manages US$17.7 billion in assets globally, has identified six companies across multiple industries that are applying automation to fill labor gaps, decrease costs, and improve health and safety of workers, all while pursuing core business strategies embracing sustainability. The companies—based in Europe, the U.S. and China—illustrate Stewart Investors' bottom-up investment process for seeking quality holdings that are contributing meaningfully to sustainable development.
"With the aging global population, falling labor participation rates, and the greater availability of automation, companies are accelerating their technology adoption to innovate and supplement their workforces," said Clare Wood, portfolio specialist for Stewart Investors. "As technology continues to advance rapidly and its cost continues to fall, automation enables companies to boost their productivity and improve worker health and safety in pursuit of their financial and sustainability objectives."
Stewart Investors believes the following six companies (in alphabetical order) are using automation effectively for sustainable growth:
Epiroc: Founded in 1873, Sweden-based Epiroc is a leader in developing, supplying and servicing mining and construction equipment and tools. Serving customers in 150 countries, its products and services enable the mining of metals essential to industries aligned to sustainable development such as renewable energy, healthcare, housing, transport and electronics. Being able to increase automation of tasks, and in some cases whole mines, can improve the use and productivity of a mine while also improving safety and saving lives. Although mining is a cyclical business dependent on commodity prices, there are several structural trends that support Epiroc's growth. These include the need to upgrade aging equipment, the shift from diesel to electric and the building of green infrastructure.
Epiroc has been a Stewart Investors holding since October 2024. The company's revenue, earnings per share (EPS), and free cash flow have increased 9.3%, 8.1% and 4.4% per year, respectively, over the five-year period through Dec. 31, 2024.
Inficon: Formed in 1969 and based in Switzerland, Inficon is a global leader in sensor-based gas analysis and vacuum control solutions. Inficon products, including leak detectors, vacuum gauges and smart manufacturing software, help reduce waste, control costs, and increase the yield of many critical manufacturing processes while preventing the release of gases and chemicals into the environment. The company has applied its expertise in gas detection machines and sensors to create robotic technology that automates the process of detecting leaks, leading to improved reliability, consistency and quality of data. Its end customers are manufacturers of refrigerators and air conditioners.
Inficon has been a Stewart Investors holding since September 2021. The company's revenue, EPS, and free cash flow have risen 11%, 16% and 32% per year, respectively, over the five-year period through June 30, 2024*.
Lincoln Electric: Established in 1895, U.S.-based Lincoln Electric is a leader in the design, development and manufacturing of welding products and equipment that are required for joining and assembling products including wind turbines and electric vehicles. The company's products result in lower energy consumption, less dust particulates and fumes, and a slower rate of consumable usage.
Automation is a key growth driver for Lincoln Electric as the pool of skilled welders shrinks. This points to a need for automation of welding and the development of Cobots, or robots that work with humans. Lincoln Electric does not make the robot arms, but sources them from specialist providers and then integrates them into a system and programs them based on the customer's needs.
Lincoln Electric has been a Stewart Investors holding since October 2023. The company's revenue, EPS, and free cash flow have increased 6%, 11%, and 12% per year, respectively, over the five-year period through Sept. 30, 2024*.
Sika: Switzerland-based Sika, established in 1910, is a specialty chemicals company that sells bonding, sealing, damping, reinforcing, and protecting products for the building and automotive sectors. The company is contributing to sustainable development gains by encompassing renewable or low carbon materials in its products and developing recycling solutions that contribute to a more circular economy.
Its offerings include low-emission and recycled concrete solutions, facade systems for energy-efficient buildings, and adhesives used in electric vehicles. With an eye to aging populations and falling fertility rates leading to lower labor force participation, Sika seeks to provide products that are intuitive to use, require little training, and are adaptable to diverse environments.
Sika has been a Stewart Investors holding since January 2022. The company's revenue, EPS, and free cash flow have risen 10%, 8%, and 30% per year, respectively, over the five-year period through Dec. 31, 2024.
Yiheda Automation: China-based Yiheda Automation, established in 2010, is a supplier of factory automation parts. The company offers manufacturers one place for designing and procuring parts, offering scale, standardization, and timeliness. Yiheda Automation provides parts for a range of industries, including technology and telecommunications, renewable energy, automotive, and robotics.
Yiheda Automation has been a Stewart Investors holding since September 2024. The company's revenue and EPS have increased by 36% each year over the five-year period through Dec. 31, 2023*.
Zebra Technologies Corp.: Based in the United States, Zebra has a 50-year-plus history as a leading provider in barcode printing, enterprise mobile computing and data capture. Zebra's products include a suite of healthcare systems including wristband and label printers, scanners, mobile computers and software that provide visibility throughout the medical ecosystem. This mitigates the risks of over- or under-dosing or multiple diagnoses and helps ensure that patients are connected to the right care.
Zebra's technology allows manufacturers to track components and monitor inventory levels which helps to minimize waste and maximize efficiency. End-product users are in retail and e-commerce, manufacturing, transportation and logistics, healthcare, energy, public sector, and other industries.
Zebra has been a Stewart Investors holding since January 2000. The company's revenue and free cash flow have risen by 1% and 4%, per year, respectively, over the five-year period through Sept. 30, 2024*. EPS has declined 4% per year over the same period due to a difficult 2023 when customers scaled back on investments in logistics and automation post-COVID. Revenue has been recovering over the last year as companies return to investing and upgrade their systems and devices.
The six companies identified were gathered from the larger universe of approximately 200 holdings across Stewart Investors' emerging markets, regional and worldwide equity strategies.
Investors can find Stewart Investors' holdings in its Portfolio Explorer tool, which details the investment team's approach, identifies the companies held in the firm's strategies, and explains how Stewart Investors believes these stocks are contributing to sustainable development. Launched in 2021, Portfolio Explorer was developed to help investors explore strategies, companies, countries and sustainability issues of interest in four views: map, human development pillars, climate solutions and sustainable development goals. Each of the four views contains relevant sub-categories.
Notes
Source for financial data: S&P Capital IQ
*Most recent financial data as of Dec. 31, 2024
Chinese companies report financial information less frequently; Dec. 31, 2024 data will be available in April 2025.
About Stewart Investors
Stewart Investors, with US$17.7 billion in assets under management as of Dec. 31, 2024, is a long-only active global equity specialist. It manages a range of worldwide, emerging markets and regional strategies on behalf of institutional and individual clients globally.
Based in Edinburgh, the firm also has offices in Frankfurt, Hong Kong, London, New York, Singapore and Sydney. For more information, visit: www.stewartinvestors.com.
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SOURCE Stewart Investors
