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.

Rewards

PE ratio (20.6x) is below the Machinery industry average (22.6x)

Earnings are forecast to grow 10.06% per year

Earnings grew by 129.3% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Parker-Hannifin

NYSE:PH

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

B

2.8%

US Machinery

0.8%

US Market


1 Year Return

11.3%

B

22.5%

US Machinery

17.8%

US Market

Return vs Industry: B underperformed the US Machinery industry which returned 22.5% over the past year.

Return vs Market: B underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BIndustryMarket
7 Day4.3%2.8%0.8%
30 Day3.8%0.2%1.8%
90 Day13.3%7.4%4.1%
1 Year12.7%11.3%24.8%22.5%20.4%17.8%
3 Year32.4%28.3%44.3%35.3%45.9%36.4%
5 Year83.4%73.2%69.7%49.7%68.1%49.6%

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?

20.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: B ($62.53) is trading above our estimate of fair value ($59.75)

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 (20.6x) compared to the Machinery industry average (22.6x).

PE vs Market: B is poor value based on its PE Ratio (20.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: B is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: B is overvalued based on its PB Ratio (2.6x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: B's forecast earnings growth (10.1% per year) is above the savings rate (1.7%).

Earnings vs Market: B's earnings (10.1% 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 (3.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: B's revenue (3.6% 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 (13.4%).


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 13.5%.


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 (72.5%) is considered high.

Reducing Debt: B's debt to equity ratio has increased from 46.7% to 72.5% over the past 5 years.

Debt Coverage: B's debt is well covered by operating cash flow (27.4%).

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?

1.02%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: B's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: B's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 (19% payout ratio).


Next Steps

Management

What is the CEO of Barnes Group's salary, the management and board of directors tenure and is there insider trading?

7.7yrs

Average management tenure


CEO

Patrick Dempsey (55yo)

6.8yrs

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 ($USD6.79M) is above average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

7.7yrs

Average Tenure

55yo

Average Age

Experienced Management: B's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: B's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: B insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$8,47302 Dec 19
Thomas Barnes
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares140
Max PriceUS$60.52
SellUS$90,22512 Nov 19
Hassell McClellan
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,500
Max PriceUS$60.15
SellUS$152,62807 Nov 19
Thomas Barnes
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,500
Max PriceUS$61.05
SellUS$1,240,17501 Nov 19
Christopher Stephens
EntityIndividual
Role
Chief Financial Officer
Senior VP of Finance & CFO
Shares21,265
Max PriceUS$58.32
BuyUS$2,07412 Sep 19
Mylle Bell Mangum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares42.31
Max PriceUS$49.00
SellUS$20,06728 Aug 19
Thomas Barnes
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares465
Max PriceUS$43.15
SellUS$103,30719 Aug 19
Marian Acker
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares2,274
Max PriceUS$45.43
SellUS$51,88731 Jul 19
Mylle Bell Mangum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$51.89
BuyUS$1,91310 Jun 19
Mylle Bell Mangum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares35.32
Max PriceUS$54.16
BuyUS$1,91310 Jun 19
Gary Benanav
EntityIndividual
Shares35.32
Max PriceUS$54.16
SellUS$698,21520 May 19
Gary Benanav
EntityIndividual
Shares12,500
Max PriceUS$55.96
SellUS$110,96016 May 19
Thomas Barnes
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,000
Max PriceUS$55.48
SellUS$97,01602 May 19
Dawn Edwards
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources
Shares1,750
Max PriceUS$55.44
BuyUS$2,06212 Mar 19
Mylle Bell Mangum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares36.79
Max PriceUS$56.05
BuyUS$2,11512 Mar 19
Gary Benanav
EntityIndividual
Shares37.74
Max PriceUS$56.05
BuyUS$58,82627 Feb 19
Richard Hipple
EntityIndividual
Shares1,000
Max PriceUS$58.83
SellUS$62,96627 Feb 19
Thomas Barnes
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,062
Max PriceUS$59.29

Ownership Breakdown

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


Management Team

  • Patrick Dempsey (55yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$6.79m
  • Mike Beck (59yo)

    Senior Vice President

    • Tenure: 3.8yrs
    • Compensation: US$1.36m
  • Peter Gutermann (59yo)

    Senior VP

    • Tenure: 2yrs
  • Chris Stephens (54yo)

    Senior VP of Finance & CFO

    • Tenure: 10.9yrs
    • Compensation: US$2.10m
  • Lukas Hovorka

    Vice President of Corporate Development

    • Tenure: 0yrs
  • Dawn Edwards (50yo)

    Senior Vice President of Human Resources

    • Tenure: 10.3yrs
    • Compensation: US$989.58k
  • Marian Acker (57yo)

    Principal Accounting Officer

    • Tenure: 9.9yrs
  • Bill Pitts

    Director of Investor Relations

    • Tenure: 8.7yrs
  • Patrick Hurley (46yo)

    Senior VP & Chief Technology Officer

    • Tenure: 0.8yrs
  • Stephen Moule

    Senior Vice President

    • Tenure: 0yrs

Board Members

  • Tom Barnes (70yo)

    Independent Chairman of the Board

    • Tenure: 24.9yrs
    • Compensation: US$326.91k
  • Mylle Mangum (70yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$215.30k
  • Tom Hook (56yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$204.49k
  • Patrick Dempsey (55yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$6.79m
  • Bill Morgan (72yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$219.30k
  • Hassell McClellan (74yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$214.80k
  • Hans-Peter Männer (56yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$199.99k
  • JoAnna Sohovich (47yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$201.49k
  • Elijah Barnes (38yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$199.99k
  • Anthony Nicolosi (65yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$200.99k

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$3.171b
  • 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 syst ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:34
End of Day Share Price2019/12/12 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.