EPOKY - Epiroc Seeing Margin Leverage As OE Orders Fade
This is a tricky time in the cycle for heavy machinery manufacturers, and mining equipment manufacturer Epiroc (OTCPK:EPOKY) is no exception. Aftermarket demand remains healthy and service orders continue to rise, but original equipment demand is clearly fading from the year-ago recovery levels. Longer term, Epiroc is well-placed to benefit from increased miner interest in automation and electrification, and the company also has a meaningful margin leverage angle.
I believe the market more or less has this story priced correctly now. There’s an argument that Epiroc shares should be worth a little more