馃彮 ADVANCED INDUSTRY: PROFITABILITY 馃彮
Nearshoring will move every type of industry and supply chain. It has already started, and the inflows and outflows can be expected to continue for 20 years or so. No matter what sector, it will typically require advanced equipment to build large projects and urbanise regions. The latter will make sense when war and destruction scenarios are playing out on the geopolitical chessboard.
The chart shows the top 25 companies related to the industry and their potential role in the future; at least, the industrial sector is not very likely to revalue at the moment [ see ]. These focus on:
Farm & Heavy Machinery
- Deere & Company (XNYS:DE)
- Caterpillar Inc. (XNYS:CAT)
- Gencor Ind (XNYS:GENC)
- PACCAR Inc (XNAS:PCAR)
- Lindsay Corporation (XNYS:LNN)
- Terex (XNYS:TEX)
- Wabash National (XNYS:WNC)
- AGCO Corporation (XNYS:AGCO)
- Alamo Group (XNYS:ALG)
- Titan Intl (XNYS:TWI)
Engineering & Construction
- Exponent, Inc. (XNAS:EXPO)
- ARCOSA, Inc. (XNYS:ACA)
- Topbuild Corp. (XNYS:BLD)
- Tetra Tech, Inc. (XNAS:TTEK)
- Concrete Pump (XNAS:BBCP)
- Sterling Infra (XNAS:STRL)
- Argan (XNYS:AGX)
- NV5 Global (XNAS:NVEE)
- Comfort Sys (XNYS:FIX)
- Dycom Industries (XNYS:DY)
Electrical equipment & parts
- Encore Wire (XNAS:WIRE)
- ATKORE Inc (XNYS:ATKR)
- nVent Electric (XNYS:NVT)
- Graftech International LTD. (XNYS:EAF)
- Hollysys (XNAS:HOLI)
Based on annual data from 2022 to 2023, twelve-month (Q2 2023) returns and profit margin were compared. It is curious how there is no correlation between the variables. Explaining why this happens may be difficult, but one possibility can be found in the earnings per share trap [ see ]. What is remarkable is that most companies have acceptable debt levels (data not shown). However, each decision must be made using multiple metrics.
J. Joel Padilla
Copyright: Joel Padilla 2023
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