- Rotork enjoys strong share in valve actuation, a key technology within process automation, but the company hasn't been able to shift away from its heavy reliance on oil&gas customers.
- Management is working on new product development for markets like food/beverage and pharmaceuticals and has the balance sheet capacity to do some selective growth-enabling M&A.
- Rotork's strong position in actuation, a key technology in process automation IIoT, could well make it an M&A target itself.
- The standalone valuation is not compelling, particularly with a long recovery timeline in oil & gas, but a buyout could still offer some upside.
For further details see:
Self-Improvement Hasn't Come Fast Enough For Rotork