Barnes Group Inc (B) Stock Fundamental Analysis
NYSE:B - New York Stock Exchange, Inc. - US0678061096 - Common Stock - Currency: USD
B gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and financial health of B have multiple concerns. B has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year B was profitable.
B had a positive operating cash flow in the past year.
B had positive earnings in each of the past 5 years.
In the past 5 years B always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of B (-1.29%) is worse than 69.29% of its industry peers.
B's Return On Equity of -3.05% is on the low side compared to the rest of the industry. B is outperformed by 67.72% of its industry peers.
The Return On Invested Capital of B (4.74%) is worse than 62.99% of its industry peers.
B had an Average Return On Invested Capital over the past 3 years of 4.50%. This is significantly below the industry average of 11.02%.
The 3 year average ROIC (4.50%) for B is below the current ROIC(4.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.29% | ||
| ROE | -3.05% | ||
| ROIC | 4.74% |
ROA(3y)1.64%
ROA(5y)2.61%
ROE(3y)3.06%
ROE(5y)5.24%
ROIC(3y)4.5%
ROIC(5y)5.09%
1.3 Margins
In the last couple of years the Profit Margin of B has declined.
B has a Operating Margin of 10.01%. This is comparable to the rest of the industry: B outperforms 51.97% of its industry peers.
B's Operating Margin has declined in the last couple of years.
B has a Gross Margin (30.57%) which is in line with its industry peers.
B's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.01% | ||
| PM (TTM) | N/A | ||
| GM | 30.57% |
OM growth 3Y-10.78%
OM growth 5Y-12.89%
PM growth 3Y-41.96%
PM growth 5Y-37%
GM growth 3Y-5.28%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so B is destroying value.
The number of shares outstanding for B remains at a similar level compared to 1 year ago.
The number of shares outstanding for B has been reduced compared to 5 years ago.
Compared to 1 year ago, B has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.38 indicates that B is not a great score, but indicates only limited risk for bankruptcy at the moment.
B has a Altman-Z score of 2.38. This is in the lower half of the industry: B underperforms 60.63% of its industry peers.
B has a debt to FCF ratio of 36.94. This is a negative value and a sign of low solvency as B would need 36.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 36.94, B is not doing good in the industry: 66.14% of the companies in the same industry are doing better.
B has a Debt/Equity ratio of 0.87. This is a neutral value indicating B is somewhat dependend on debt financing.
The Debt to Equity ratio of B (0.87) is worse than 79.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 36.94 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.5
WACC9.56%
2.3 Liquidity
A Current Ratio of 2.28 indicates that B has no problem at all paying its short term obligations.
B has a Current ratio (2.28) which is comparable to the rest of the industry.
A Quick Ratio of 1.35 indicates that B should not have too much problems paying its short term obligations.
B's Quick ratio of 1.35 is in line compared to the rest of the industry. B outperforms 54.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
B shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.98%.
The earnings per share for B have been decreasing by -12.62% on average. This is quite bad
Looking at the last year, B shows a quite strong growth in Revenue. The Revenue has grown by 19.82% in the last year.
B shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.61% yearly.
EPS 1Y (TTM)-28.98%
EPS 3Y0.2%
EPS 5Y-12.62%
EPS Q2Q%-52.63%
Revenue 1Y (TTM)19.82%
Revenue growth 3Y8.87%
Revenue growth 5Y-0.61%
Sales Q2Q%7.43%
3.2 Future
The Earnings Per Share is expected to grow by 15.31% on average over the next years. This is quite good.
B is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.28% yearly.
EPS Next Y-17.16%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y15.31%
Revenue Next Year9.63%
Revenue Next 2Y7.03%
Revenue Next 3Y6.8%
Revenue Next 5Y-0.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.98, B can be considered very expensive at the moment.
Based on the Price/Earnings ratio, B is valued a bit more expensive than 66.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.39. B is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 23.32 indicates a rather expensive valuation of B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of B is on the same level as its industry peers.
B is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.98 | ||
| Fwd PE | 23.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, B is valued a bit cheaper than 69.29% of the companies in the same industry.
62.99% of the companies in the same industry are cheaper than B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.01 | ||
| EV/EBITDA | 12.09 |
4.3 Compensation for Growth
B's earnings are expected to grow with 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.08%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
B has a Yearly Dividend Yield of 1.35%.
B's Dividend Yield is a higher than the industry average which is at 1.65.
Compared to an average S&P500 Dividend Yield of 2.30, B's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
5.2 History
The dividend of B has a limited annual growth rate of 0.80%.
B has paid a dividend for at least 10 years, which is a reliable track record.
B has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.8%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
B has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-81.59%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
Barnes Group Inc
NYSE:B (1/24/2025, 7:21:48 PM)
After market: 47.48 0 (0%)47.48
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.28%
Inst Owner Change-19.28%
Ins Owners8.21%
Ins Owner Change-44.99%
Market Cap2.42B
Analysts76
Price Target48.85 (2.89%)
Short Float %2.57%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.35% |
Yearly Dividend0.64
Dividend Growth(5Y)0.8%
DP-81.59%
Div Incr Years0
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.89%
Min EPS beat(2)-77.38%
Max EPS beat(2)-8.4%
EPS beat(4)2
Avg EPS beat(4)-16.66%
Min EPS beat(4)-77.38%
Max EPS beat(4)14.36%
EPS beat(8)5
Avg EPS beat(8)-12.42%
EPS beat(12)8
Avg EPS beat(12)-5.8%
EPS beat(16)12
Avg EPS beat(16)-2.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-0.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)-0.03%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)1
Avg Revenue beat(12)-2.13%
Revenue beat(16)4
Avg Revenue beat(16)-1%
PT rev (1m)0%
PT rev (3m)-0.05%
EPS NQ rev (1m)8.7%
EPS NQ rev (3m)5.82%
EPS NY rev (1m)3.08%
EPS NY rev (3m)-17.54%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.98 | ||
| Fwd PE | 23.32 | ||
| P/S | 1.5 | ||
| P/FCF | 78.01 | ||
| P/OCF | 26.53 | ||
| P/B | 1.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.09 |
EPS(TTM)1.25
EY2.63%
EPS(NY)2.04
Fwd EY4.29%
FCF(TTM)0.61
FCFY1.28%
OCF(TTM)1.79
OCFY3.77%
SpS31.73
BVpS25.61
TBVpS-8.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.29% | ||
| ROE | -3.05% | ||
| ROCE | 6% | ||
| ROIC | 4.74% | ||
| ROICexc | 4.88% | ||
| ROICexgc | 14.56% | ||
| OM | 10.01% | ||
| PM (TTM) | N/A | ||
| GM | 30.57% | ||
| FCFM | 1.92% |
ROA(3y)1.64%
ROA(5y)2.61%
ROE(3y)3.06%
ROE(5y)5.24%
ROIC(3y)4.5%
ROIC(5y)5.09%
ROICexc(3y)4.68%
ROICexc(5y)5.29%
ROICexgc(3y)13.63%
ROICexgc(5y)15.61%
ROCE(3y)5.7%
ROCE(5y)6.45%
ROICexcg growth 3Y-10.53%
ROICexcg growth 5Y-16.87%
ROICexc growth 3Y-9.22%
ROICexc growth 5Y-16.52%
OM growth 3Y-10.78%
OM growth 5Y-12.89%
PM growth 3Y-41.96%
PM growth 5Y-37%
GM growth 3Y-5.28%
GM growth 5Y-3.06%
F-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 36.94 | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 47.58% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 2.38 |
F-Score4
WACC9.56%
ROIC/WACC0.5
Cap/Depr(3y)41.21%
Cap/Depr(5y)44.76%
Cap/Sales(3y)3.11%
Cap/Sales(5y)3.31%
Profit Quality(3y)262.72%
Profit Quality(5y)237.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.98%
EPS 3Y0.2%
EPS 5Y-12.62%
EPS Q2Q%-52.63%
EPS Next Y-17.16%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y15.31%
Revenue 1Y (TTM)19.82%
Revenue growth 3Y8.87%
Revenue growth 5Y-0.61%
Sales Q2Q%7.43%
Revenue Next Year9.63%
Revenue Next 2Y7.03%
Revenue Next 3Y6.8%
Revenue Next 5Y-0.28%
EBIT growth 1Y20.87%
EBIT growth 3Y-2.87%
EBIT growth 5Y-13.43%
EBIT Next Year94.78%
EBIT Next 3Y31.35%
EBIT Next 5Y24.82%
FCF growth 1Y-43.01%
FCF growth 3Y-31.3%
FCF growth 5Y-20.63%
OCF growth 1Y9.18%
OCF growth 3Y-19.5%
OCF growth 5Y-13.87%