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Four years ago, shares in Renishaw (LSE:RSW) were trading at £64.75. Today, the FTSE 250 stock has a price of £22.20.
That makes it look as though a lot has gone wrong with the business. But I think the reality is quite different and things aren’t nearly as bad as they look.
Why is the stock down?
Renishaw is one of the leading manufacturers of precision measuring equipment. Its products are used in production facilities for things like medical devices, robotics, and semiconductors.
It’s the last of these that has been a big drag on the business recently. Semiconductors are a notoriously volatile industry and after a boom in 2021, investment in factories has slowed.
On top of this, the company isn’t easily able to give guidance as to when this will turn around. Its order book only provides it with visibility of around two months ahead on average.
That makes it…
