BARNES GROUP INC (B)
US0678061096 - Common Stock
B gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While B seems to be doing ok healthwise, there are quite some concerns on its profitability. B does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
B had positive earnings in the past year.
B had a positive operating cash flow in the past year.
In the past 5 years B has always been profitable.
In the past 5 years B always reported a positive cash flow from operatings.
1.2 Ratios
B's Return On Assets of 0.49% is on the low side compared to the rest of the industry. B is outperformed by 64.34% of its industry peers.
With a Return On Equity value of 1.18%, B is not doing good in the industry: 63.57% of the companies in the same industry are doing better.
B has a Return On Invested Capital of 3.52%. This is in the lower half of the industry: B underperforms 64.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for B is significantly below the industry average of 10.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.18% | ||
| ROIC | 3.52% |
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
Looking at the Profit Margin, with a value of 1.11%, B is doing worse than 63.57% of the companies in the same industry.
In the last couple of years the Profit Margin of B has declined.
B has a Operating Margin of 8.94%. This is comparable to the rest of the industry: B outperforms 49.61% of its industry peers.
B's Operating Margin has declined in the last couple of years.
B has a Gross Margin of 31.38%. This is comparable to the rest of the industry: B outperforms 58.91% of its industry peers.
In the last couple of years the Gross Margin of B has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.94% | ||
| PM (TTM) | 1.11% | ||
| GM | 31.38% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), B is destroying value.
B has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, B has less shares outstanding
Compared to 1 year ago, B has a worse debt to assets ratio.
2.2 Solvency
B has an Altman-Z score of 1.95. This is not the best score and indicates that B is in the grey zone with still only limited risk for bankruptcy at the moment.
B has a Altman-Z score of 1.95. This is in the lower half of the industry: B underperforms 66.67% of its industry peers.
The Debt to FCF ratio of B is 22.78, which is on the high side as it means it would take B, 22.78 years of fcf income to pay off all of its debts.
B has a Debt to FCF ratio (22.78) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.94 indicates that B is somewhat dependend on debt financing.
B's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. B is outperformed by 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 22.78 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.39
WACC9.08%
2.3 Liquidity
B has a Current Ratio of 2.29. This indicates that B is financially healthy and has no problem in meeting its short term obligations.
B has a Current ratio of 2.29. This is comparable to the rest of the industry: B outperforms 58.91% of its industry peers.
A Quick Ratio of 1.37 indicates that B should not have too much problems paying its short term obligations.
B's Quick ratio of 1.37 is fine compared to the rest of the industry. B outperforms 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for B have decreased strongly by -16.67% in the last year.
Measured over the past years, B shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.62% on average per year.
Looking at the last year, B shows a quite strong growth in Revenue. The Revenue has grown by 14.98% in the last year.
The Revenue has been decreasing by -0.61% on average over the past years.
EPS 1Y (TTM)-16.67%
EPS 3Y0.2%
EPS 5Y-12.62%
EPS growth Q2Q-21.15%
Revenue 1Y (TTM)14.98%
Revenue growth 3Y8.87%
Revenue growth 5Y-0.61%
Revenue growth Q2Q32.55%
3.2 Future
The Earnings Per Share is expected to grow by 16.23% 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 Y4.78%
EPS Next 2Y13.93%
EPS Next 3Y16.23%
EPS Next 5YN/A
Revenue Next Year12.32%
Revenue Next 2Y8.21%
Revenue Next 3Y8.28%
Revenue Next 5Y-0.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
B is valuated rather expensively with a Price/Earnings ratio of 21.45.
Based on the Price/Earnings ratio, B is valued a bit cheaper than 62.02% of the companies in the same industry.
B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.02.
Based on the Price/Forward Earnings ratio of 20.47, the valuation of B can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as B.
B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, B is valued a bit cheaper than 62.02% of the companies in the same industry.
B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.66 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates B does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as B's earnings are expected to grow with 16.23% in the coming years.
PEG (NY)4.49
PEG (5Y)N/A
EPS Next 2Y13.93%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
B has a Yearly Dividend Yield of 1.86%.
Compared to an average industry Dividend Yield of 1.72, B pays a better dividend. On top of this B pays more dividend than 85.27% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of B has a limited annual growth rate of 0.80%.
B has been paying a dividend for at least 10 years, so it has 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
201.12% of the earnings are spent on dividend by B. This is not a sustainable payout ratio.
The dividend of B is growing, but earnings are growing more, so the dividend growth is sustainable.
DP201.12%
EPS Next 2Y13.93%
EPS Next 3Y16.23%
BARNES GROUP INC
NYSE:B (4/29/2024, 7:04:00 PM)
After market: 35.39 0 (0%)35.39
+0.92 (+2.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.45 | ||
| Fwd PE | 20.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.94% | ||
| PM (TTM) | 1.11% | ||
| GM | 31.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.67%
EPS 3Y0.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.98%
Revenue growth 3Y8.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y