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B

Barnes Group NYSE:B Stock Report

Last Price

US$35.07

Market Cap

US$1.8b

7D

3.8%

1Y

-30.3%

Updated

14 Aug, 2022

Data

Company Financials +
B fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends5/6

B Stock Overview

Barnes Group Inc. provides engineered products, industrial technologies, and solutions in the United States and internationally.

Barnes Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Barnes Group
Historical stock prices
Current Share PriceUS$35.07
52 Week HighUS$50.32
52 Week LowUS$29.60
Beta1.17
1 Month Change13.46%
3 Month Change4.62%
1 Year Change-30.32%
3 Year Change-22.91%
5 Year Change-41.52%
Change since IPO610.28%

Recent News & Updates

Aug 04

Barnes Group: Attractive Upside Despite Some Bumps On The Road

Barnes Group has not fared particularly well recently, as mixed fundamental performance has hindered investor enthusiasm. The company likely deserved a bit of pain, but shares are now looking quite cheap. Ultimately, upside for investors could be attractive down the road and investors would be wise to consider a stake in the firm. One thing that I have found to be true about investing is that, sometimes, it can take a long while for a particular call to play out as expected. One great example of this can be seen by looking at Barnes Group (B), a company that focuses largely on the industrial and aerospace markets. Although I had previously rated the company a 'buy', reflecting my belief that it would generate returns that outperform the broader market, shares in recent months have disappointed. Some of this pain has been driven by the fact that some fundamental performance of the enterprise has not been particularly robust. But given how cheap shares are today, I do believe that upside potential is still on the table. The only thing I believe now is that it would take a little more patience than I previously anticipated. But with how shares are priced today, it is possible that now may make sense to buy in even more if you are still bullish on the firm. Times have been tough Back in November of 2021, I wrote an article that took a bullish take on Barnes Group. In that article, I acknowledged that the company had experienced some pain during the pandemic. At the same time, however, I said that the fundamental picture for the firm was improving. I lauded the company's significant customer base and said that the outlook for the long term was solid. I also concluded that shares were attractively priced at that time, leading me to rate the company a 'buy'. Unfortunately, things have not gone exactly as planned. Instead of outperforming the market, shares have underperformed. While the S&P 500 is down by 11.8% since the publication of that article, shares of Barnes Group have generated a loss for investors of 19.8%. Author - SEC EDGAR Data In the short term, I would say that some of this pain might have been warranted. After all, the company has ceased improving and seems to be hovering around where it was the same time last year. In some ways, the fundamental picture is even worse. Consider, for instance, how the company ended its 2021 fiscal year. Sales for that year came in at $1.26 billion. That was slightly higher than the $1.12 billion generated in 2020. At the same time, it still marked a sizable downturn from the $1.49 billion the company achieved in 2019. Net income of $99.9 million was better than the $63.4 million achieved in 2020. But it still was lower than the $158.4 million generated in 2019. Operating cash flow went from $215.5 million in 2020 down to $167.8 million last year. But if we adjust for changes in working capital, it would have risen from $167.9 million to $201.4 million. Meanwhile, EBITDA increased from $205.1 million to $235.1 million. Although the general picture here was positive, the company has hit something of a roadblock this year. Due to difficult market conditions, revenue has virtually flatlined. In the latest quarter of the year, the second quarter of 2022, sales of $321.3 million were only $100,000 higher than what they were the same time last year. For the full year-to-date timeframe, sales of $633.7 million translated to a modest 1.8% rise over the $622.8 million generated the same time of the company's 2021 fiscal year. Author - SEC EDGAR Data We also have the issue of profitability. In the latest quarter, the company generated a net loss of $39.6 million. That's down from the $24.5 million generated the same time one year earlier that has brought the total net profit for the company for the first half of the year down to a negative $19.1 million compared to the $43.9 million profit achieved in the first half of 2021. Operating cash flow also declined, dropping from $50.1 million to $17.8 million, taking the year-to-date figure down from $85.7 million to $8.5 million. If we adjust for changes in working capital, at least, the picture does look better. Using this approach, the metric rose from $50.5 million in the second quarter of last year to $54.7 million the same time this year, while for the first six months it rose from $94.1 million to $100 million. A very similar trend can be seen when looking at EBITDA, as the charts above and below both illustrate. Author - SEC EDGAR Data When it comes to the 2022 fiscal year as a whole, management expects organic revenue to rise by between 5% and 6% year over year. However, much of this would be offset by a 3% hit caused by foreign currency fluctuations. Despite the sales increase, earnings per share should be between $1.90 and $2.05, implying anything from a 2% drop to a 6% increase year over year. This excludes a $0.27 per share hit caused by restructuring costs this year and a $1.33 per share impairment charge. The company has also been negatively impacted by increased raw material, utility, labor, and freight costs because of inflation and supply chain issues.

Jul 28

Barnes Group to shutter engineered components facility in Connecticut

Barnes Group (NYSE:B) on Friday announced the planned closure of production operations at its engineered components facility in Bristol, Connecticut. The decision was made due to ongoing decline in U.S. powertrain automotive production volumes as manufacturers increase electric vehicle output. This is compounded by high inflation and supply chain issues. The facility supports B's Associated Spring brand with ~95 employees and focuses on manufacturing, stamping and assembly of legacy transmission springs and washers. Work at the facility will either be transferred to other manufacturing locations or permanently discontinued. No other engineered components manufacturing facilities are affected by the closure, other than to support transferred operations. The closure does not impact B's headquarters, which will continue to be in Bristol. The facility closure is expected to be completed by mid-2023.

Jul 25
Barnes Group Inc. (NYSE:B) Shares Could Be 40% Below Their Intrinsic Value Estimate

Barnes Group Inc. (NYSE:B) Shares Could Be 40% Below Their Intrinsic Value Estimate

Does the July share price for Barnes Group Inc. ( NYSE:B ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

BUS MachineryUS Market
7D3.8%4.9%3.2%
1Y-30.3%-10.4%-10.2%

Return vs Industry: B underperformed the US Machinery industry which returned -10.4% over the past year.

Return vs Market: B underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is B's price volatile compared to industry and market?
B volatility
B Average Weekly Movement4.3%
Machinery Industry Average Movement5.8%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: B is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: B's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18575,100Tom Hookhttps://www.barnesgroupinc.com

Barnes Group Inc. provides engineered products, industrial technologies, and solutions in the United States and internationally. It operates in two segments: Industrial and Aerospace. The Industrial segment offers precision components, products, and systems used by various customers in end-markets, such as mobility, industrial equipment, automation, personal care, packaging, electronics, and medical devices.

Barnes Group Fundamentals Summary

How do Barnes Group's earnings and revenue compare to its market cap?
B fundamental statistics
Market CapUS$1.77b
Earnings (TTM)US$36.93m
Revenue (TTM)US$1.27b

48.0x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
B income statement (TTM)
RevenueUS$1.27b
Cost of RevenueUS$825.93m
Gross ProfitUS$443.78m
Other ExpensesUS$406.85m
EarningsUS$36.93m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.73
Gross Margin34.95%
Net Profit Margin2.91%
Debt/Equity Ratio43.9%

How did B perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

88%

Payout Ratio

Does B pay a reliable dividends?

See B dividend history and benchmarks
When do you need to buy B by to receive an upcoming dividend?
Barnes Group dividend dates
Ex Dividend DateAug 24 2022
Dividend Pay DateSep 09 2022
Days until Ex dividend9 days
Days until Dividend pay date25 days

Does B pay a reliable dividends?

See B dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for B?

Other financial metrics that can be useful for relative valuation.

B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA9.4x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does B's PE Ratio compare to its peers?

B PE Ratio vs Peers
The above table shows the PE ratio for B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.1x
KMT Kennametal
15.5x8.2%US$2.2b
NPO EnPro Industries
12.1x-21.0%US$2.2b
MWA Mueller Water Products
21.6x13.6%US$1.9b
TNC Tennant
23.2x18.4%US$1.3b
B Barnes Group
48x121.6%US$1.8b

Price-To-Earnings vs Peers: B is expensive based on its Price-To-Earnings Ratio (48x) compared to the peer average (18.1x).


Price to Earnings Ratio vs Industry

How does B's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: B is expensive based on its Price-To-Earnings Ratio (48x) compared to the US Machinery industry average (22.4x)


Price to Earnings Ratio vs Fair Ratio

What is B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48x
Fair PE Ratio179x

Price-To-Earnings vs Fair Ratio: B is good value based on its Price-To-Earnings Ratio (48x) compared to the estimated Fair Price-To-Earnings Ratio (179x).


Share Price vs Fair Value

What is the Fair Price of B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: B ($35.07) is trading below our estimate of fair value ($55.21)

Significantly Below Fair Value: B is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


121.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: B's forecast earnings growth (121.6% per year) is above the savings rate (1.9%).

Earnings vs Market: B's earnings (121.6% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: B's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: B's revenue (4.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: B's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if B's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Barnes Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: B has a large one-off loss of $71.3M impacting its June 30 2022 financial results.

Growing Profit Margin: B's current net profit margins (2.9%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: B's earnings have declined by 9.1% per year over the past 5 years.

Accelerating Growth: B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: B had negative earnings growth (-52%) over the past year, making it difficult to compare to the Machinery industry average (9.4%).


Return on Equity

High ROE: B's Return on Equity (2.8%) is considered low.


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Financial Health

How is Barnes Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: B's short term assets ($690.4M) exceed its short term liabilities ($284.9M).

Long Term Liabilities: B's short term assets ($690.4M) do not cover its long term liabilities ($796.1M).


Debt to Equity History and Analysis

Debt Level: B's net debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: B's debt to equity ratio has increased from 39% to 43.9% over the past 5 years.

Debt Coverage: B's debt is not well covered by operating cash flow (15.7%).

Interest Coverage: B's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.82%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 15 2022Ex Dividend DateAug 24 2022Dividend Pay DateSep 09 202216 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: B's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: B's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.95%).


Stability and Growth of Payments

Stable Dividend: B's dividends per share have been stable in the past 10 years.

Growing Dividend: B's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (88.3%), B's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (53.4%), B's dividend payments are covered by cash flows.


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Management

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

3.1yrs

Average management tenure


CEO

Tom Hook (59 yo)

0.083

Tenure

US$201,490

Compensation

Mr. Thomas J. Hook, also known as Tom, served as Chief Executive Officer at Q Holding Company until 2021. He served as the Chief Executive Officer of Integer Holdings Corporation from August 2006 to March...


Leadership Team

Experienced Management: B's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: B's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: B insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: US$1.772b
  • Shares outstanding: 50.52m
  • Website: https://www.barnesgroupinc.com

Number of Employees


Location

  • Barnes Group Inc.
  • 123 Main Street
  • Bristol
  • Connecticut
  • 06010-6376
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.