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
|Historical stock prices|
|Current Share Price||US$35.07|
|52 Week High||US$50.32|
|52 Week Low||US$29.60|
|1 Month Change||13.46%|
|3 Month Change||4.62%|
|1 Year Change||-30.32%|
|3 Year Change||-22.91%|
|5 Year Change||-41.52%|
|Change since IPO||610.28%|
Recent News & Updates
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.
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.
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...
|B||US Machinery||US Market|
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.
|B Average Weekly Movement||4.3%|
|Machinery Industry Average Movement||5.8%|
|Market Average Movement||7.7%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||3.2%|
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
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
|B fundamental statistics|
Is B overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|B income statement (TTM)|
|Cost of Revenue||US$825.93m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.73|
|Net Profit Margin||2.91%|
How did B perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Does B pay a reliable dividends?See B dividend history and benchmarks
|Barnes Group dividend dates|
|Ex Dividend Date||Aug 24 2022|
|Dividend Pay Date||Sep 09 2022|
|Days until Ex dividend||9 days|
|Days until Dividend pay date||25 days|
Does B pay a reliable dividends?See B dividend history and benchmarks
Is B undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is B's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does B's PE Ratio compare to its peers?
|B PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
NPO EnPro Industries
MWA Mueller Water Products
B Barnes Group
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.
|Current PE Ratio||48x|
|Fair PE Ratio||179x|
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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How is Barnes Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Barnes Group performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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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How is Barnes Group's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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).
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What is Barnes Group current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
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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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Hook (59 yo)
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...
Experienced Management: B's management team is considered experienced (3.1 years average tenure).
Experienced Board: B's board of directors are considered experienced (6.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Barnes Group Inc.'s employee growth, exchange listings and data sources
- 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
- Barnes Group Inc.
- 123 Main Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/14 00:00|
|End of Day Share Price||2022/08/12 00:00|
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.