Much has been written about the fourth industrial revolution, robotics and robots. Here is a proxy play for that robotic future.

SINGAPORE (Jan 23): Frankfurt-listed Isra Vision (Isra) is a developer and manufacturer of software and systems for the image processing and machine vision industry. Isra markets its software worldwide, and operates two main segments: the surface vision segment which covers quality and surface inspection; while the industrial automation segment covers robot vision in automated production. Isra’s software and systems are used across multiple manufacturing industries, particularly the automotive industry through quality control, surface measurement, automated assembly and robot guidance. The performance of the company is very much tied to the performance of its customers, who are mainly premium automobile manufacturers and global players from a wide variety of industries, as they are part of the value chain.

For FY2019/2020, Isra was able to maintain a high level of profitability despite tough industry and economic conditions, which include delays in expected major orders, particularly from Europe and Asia in the fourth quarter. Ebitda also grew 6% y-o-y, and EBITDA margins also improved for this period from 32% to 34%. Isra’s operating cash flow and free cash flow by 29.7% and 4.0% respectively for the same period. Isra has a very strong financial foundation, and probably its best trait - its ability to remain profitable despite any industry condition over the past 15 years – with a positive and growing revenue, net profits, operating cash flow (OCF) and free cash flow (FCF).

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