Stewart Investors Highlights Six Companies Leveraging Automation for Sustainable Growth

Identifying Leaders in Sustainable Automation

Amid ongoing demographic shifts and quick technology advancements, automation has emerged as a vital tool for addressing labor shortages, enhancing productivity, and supporting sustainability initiatives. Recent findings from Stewart Investors, a prominent global equity specialist managing assets worth $17.7 billion, reveal six companies across various sectors that are leveraging automation to drive sustainable growth. These firms not only fill labor gaps but also reduce costs and improve workplace safety. They embody a bottom-up investment strategy focused on handpicking quality companies contributing to sustainable development.

The Six Companies Leading the Charge

Stewart Investors has identified the following six companies, each of which is harnessing automation to fulfill their sustainability and business objectives effectively:

1. Epiroc

Founded in 1873 and based in Sweden, Epiroc excels in the development and servicing of mining and construction tools. Operating in 150 countries, its products facilitate the extraction of essential metals for industries aimed at sustainable development, like renewable energy and healthcare. With the capacity to automate various tasks in mining, Epiroc leads in increasing productivity while prioritizing safety. After being added to Stewart Investors' portfolio in October 2024, the company reported steady annual growth in revenue (9.3%), earnings per share (8.1%), and free cash flow (4.4%) over five years.

2. Inficon

Established in 1969 in Switzerland, Inficon is a leader in sensor-based gas analysis and vacuum control solutions. They specialize in devices such as leak detectors and vacuum gauges, which help manufacturers optimize resource utilization while keeping environmental impact in check. Inficon's advancements include robotic technologies that streamline leak detection processes. The company has seen impressive growth, increasing revenue (11%), EPS (16%), and free cash flow (32%) annually since September 2021.

3. Lincoln Electric

Lincoln Electric, an American company founded in 1895, is renowned for its welding products essential for various sectors, including wind energy and electric vehicles. As the demand for skilled welders decreases, the need for automation in welding has surged, prompting Lincoln Electric to integrate Cobots—robots that assist human workers—into its operations. It joined Stewart Investors' holdings in October 2023, showcasing a 6% yearly growth in revenue, 11% in EPS, and 12% in free cash flow over the preceding five years.

4. Sika

Founded in 1910 in Switzerland, Sika is a specialty chemicals company focused on providing bonding and sealing solutions for construction and automotive sectors while actively pursuing sustainability. Their innovative products include low-emission concrete and recycling solutions to foster a circular economy. Welcomed into Stewart Investors' portfolio in January 2022, Sika has recorded revenue growth of 10%, EPS growth of 8%, and a remarkable 30% increase in free cash flow each year since in the last five years.

5. Yiheda Automation

This China-based company, founded in 2010, specializes in supplying parts for factory automation, supporting diverse industries such as renewable energy and automotive manufacturing. Recognized for its ability to streamline the procurement process, Yiheda Automation has been a part of Stewart Investors’ portfolio since September 2024. The revenue and EPS have each grown an impressive 36% annually over the past five years.

6. Zebra Technologies Corp.

With over 50 years of history as a leader in barcode printing and enterprise mobile computing, Zebra Technologies provides key technologies that enhance operational efficiency across various sectors, including healthcare and logistics. The firm has been a part of Stewart Investors' holdings since January 2000, experiencing marginally lower growth in EPS (-4%) recently due to shifts in customer investment patterns. However, revenue and free cash flow have consistently risen by 1% and 4% per year.

Conclusion

The highlighted companies reflect Stewart Investors' commitment to identifying firms that embrace automation as a pathway to sustainable growth. By focusing on quality holdings, these firms not only contribute to business efficiencies but also address pressing sustainability goals. Potential investors can explore Stewart Investors' extensive portfolio through their Portfolio Explorer tool, designed to provide insights into companies' strategies and their positive impact on sustainable development.