Rockwell's internal investments continue to enhance profitability and longer-term growth prospects.
In a mature broadband market, strong customer support and branding help capture market share.
Whenever significant capital flows into the company through divestiture or special one-time items, Honeywell prefers to retain the windfall for internal restructuring rather than simply returning it to shareholders.The runway for operating margin growth may be running out as the Honeywell Operating
By starting to provide services as well as manufacturing tools, Actuant is entering an entirely new area and may not be as equipped to operate profitably.Actuant made a big bet on energy services when the peak in oil prices occurred. The payback period for these investments is probably longer than
Even with the spin-off of Allegion, Ingersoll-Rand remains a collection of disparate businesses with questionable operational synergies. None of the individual businesses are likely to receive the extent of upper management attention they deserve.The firm significantly overpaid for Trane. Prospects
Eaton's core growth slows, but acquisition synergies keep midcycle earnings on track.
Improved pension liabilities lead to an increase in our fair value estimate.
Increased centralization risks damaging the culture that has made ITW so successful. Customer responsiveness and ability to adapt to changing business conditions could suffer as a result.ITW is prone to overpay for the faster-growing and better competitively advantaged companies that it now targets
About 75% of Danaher's sales growth during the past five years has come from acquisitions. If the well of new acquisition candidates dries up, Danaher's growth rate could slow.Other manufacturing companies are catching up with Danaher's processes as former Danaher managers take high-level positions
Efficient manufacturing programs like Six Sigma and lean manufacturing have been around long enough for other firms to successfully implement and catch up to GE, reducing the strength of GE's cost advantage.By shifting to long-term financing, GE is opting for more expensive financing, which will