NYSE:B

Stock Analysis Report

Executive Summary

Barnes Group Inc. operates as an industrial and aerospace manufacturer, and service provider in the United States and internationally.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Barnes Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

B

-1.4%

US Machinery

0.5%

US Market


1 Year Return

5.5%

B

9.4%

US Machinery

20.3%

US Market

Return vs Industry: B underperformed the US Machinery industry which returned 9.4% over the past year.

Return vs Market: B underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

BIndustryMarket
7 Day-2.1%-1.4%0.5%
30 Day-0.7%-1.7%2.0%
90 Day8.5%1.4%9.4%
1 Year6.7%5.5%11.4%9.4%22.8%20.3%
3 Year32.5%28.7%37.8%29.0%50.1%40.4%
5 Year69.1%60.2%61.4%42.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is Barnes Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Barnes Group undervalued compared to its fair value and its price relative to the market?

21.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: B ($64.69) is trading above our estimate of fair value ($59.2)

Significantly Below Fair Value: B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: B is good value based on its PE Ratio (21.3x) compared to the Machinery industry average (21.3x).

PE vs Market: B is poor value based on its PE Ratio (21.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: B is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: B is overvalued based on its PB Ratio (2.7x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Barnes Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: B's forecast earnings growth (10% per year) is above the savings rate (1.7%).

Earnings vs Market: B's earnings (10% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: B's earnings are forecast to grow, but not significantly.

Revenue vs Market: B's revenue (2.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: B's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: B's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Barnes Group performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: B has high quality earnings.

Growing Profit Margin: B's current net profit margins (10.4%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: B's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: B's earnings growth over the past year (129.3%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: B earnings growth over the past year (129.3%) exceeded the Machinery industry 1.5%.


Return on Equity

High ROE: B's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Barnes Group's financial position?


Financial Position Analysis

Short Term Liabilities: B's short term assets ($772.4M) exceed its short term liabilities ($347.0M).

Long Term Liabilities: B's short term assets ($772.4M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: B's debt to equity ratio (72%) is considered high.

Reducing Debt: B's debt to equity ratio has increased from 46.7% to 72% over the past 5 years.

Debt Coverage: B's debt is well covered by operating cash flow (27.6%).

Interest Coverage: B's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

Inventory Level: B has a high level of physical assets or inventory.

Debt Coverage by Assets: B's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Barnes Group's current dividend yield, its reliability and sustainability?

0.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: B's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: B's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: B's dividend payments have been volatile in the past 10 years.

Growing Dividend: B's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: B's dividends in 3 years are forecast to be well covered by earnings (18.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Patrick Dempsey (55yo)

6.9yrs

Tenure

US$6,789,894

Compensation

Mr. Patrick J. Dempsey has been the Chief Executive Officer and President of Barnes Group Inc. since March 01, 2013. Mr. Dempsey served as the Chief Operating Officer and Senior Vice President of Barnes Gr ...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD6.79M) is above average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Dempsey
President6.9yrsUS$6.79m0.64% $21.0m
Christopher Stephens
Senior VP of Finance & CFO11.1yrsUS$2.10m0.18% $5.9m
Dawn Edwards
Senior Vice President of Human Resources10.5yrsUS$989.58k0.16% $5.2m
Michael Beck
Senior Vice President3.9yrsUS$1.36m0.041% $1.3m
Marian Acker
Principal Accounting Officer10.1yrsno data0.046% $1.5m
Patrick Hurley
Senior VP & Chief Technology Officer1yrsno datano data
William Pitts
Director of Investor Relations8.8yrsno datano data
Peter Gutermann
Senior VP2.2yrsno data0.00082% $26.9k
Lukas Hovorka
Vice President of Corporate Development0yrsno datano data
Stephen Moule
Senior Vice President0.2yrsno datano data

6.9yrs

Average Tenure

55yo

Average Age

Experienced Management: B's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Dempsey
President6.9yrsUS$6.79m0.64% $21.0m
Thomas Barnes
Independent Chairman of the Board25.1yrsUS$326.91k4.17% $136.7m
Mylle Bell Mangum
Independent Director18.1yrsUS$215.30k0.019% $637.8k
Thomas Hook
Independent Director3.8yrsUS$204.49k0.011% $371.4k
William Morgan
Independent Director13.3yrsUS$219.30k0.084% $2.7m
Hassell McClellan
Lead Independent Director0yrsUS$214.80k0.034% $1.1m
Hans-Peter Männer
Director3.3yrsUS$199.99k0.80% $26.2m
JoAnna Sohovich
Independent Director5.8yrsUS$201.49k0.020% $666.0k
Elijah Barnes
Independent Director4.1yrsUS$199.99k0.079% $2.6m
Anthony Nicolosi
Independent Director2.8yrsUS$200.99k0.0061% $201.4k

5.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: B's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: B insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Barnes Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Barnes Group Inc.
  • Ticker: B
  • Exchange: NYSE
  • Founded: 1857
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$3.281b
  • Shares outstanding: 50.71m
  • Website: https://www.barnesgroupinc.com

Number of Employees


Location

  • Barnes Group Inc.
  • 123 Main Street
  • Bristol
  • Connecticut
  • 6010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
BG4DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Barnes Group Inc. operates as an industrial and aerospace manufacturer, and service provider in the United States and internationally. Its Industrial segment offers precision components, products, and systems for applications serving various customers in end-markets, such as transportation, industrial equipment, automation, personal care, packaging, electronics, and medical devices. It also designs and manufactures hot runner systems, mold cavity sensors and process control systems, and precision high cavitation mold assemblies for injection molding applications; provides force and motion control solutions for various metal forming and other industrial markets; and designs and develops robotic grippers, end-of-arm tooling systems, sensors, and other automation components for intelligent robotic handling solutions and industrial automation applications. In addition, this segment manufactures and supplies precision mechanical products, including mechanical springs, high-precision punched and fine-blanked components, and retention rings for use in transportation and industrial applications. It sells its products primarily through its direct sales force and distribution channels. Its Aerospace segment produces fabricated and precision machined components and assemblies for commercial and military aircraft turbine engines, nacelles, and structures; provides aircraft engine component maintenance, repair, and overhaul services for turbine engine manufacturers, commercial airlines, and the military; and manufactures and delivers aerospace aftermarket spare parts. This segment primarily serves original equipment manufacturing industry. Barnes Group Inc. was founded in 1857 and is headquartered in Bristol, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:10
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.