NYSE:BDC

Stock Analysis Report

Executive Summary

Belden Inc. operates as a signal transmission solutions company in the United States and internationally.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.8%

BDC

-1.9%

US Electronic

-1.0%

US Market


1 Year Return

-20.3%

BDC

6.1%

US Electronic

18.0%

US Market

Return vs Industry: BDC underperformed the US Electronic industry which returned 6.1% over the past year.

Return vs Market: BDC underperformed the US Market which returned 18% over the past year.


Shareholder returns

BDCIndustryMarket
7 Day-4.8%-1.9%-1.0%
30 Day-4.4%-6.0%0.6%
90 Day-9.2%1.1%7.9%
1 Year-20.0%-20.3%7.2%6.1%20.4%18.0%
3 Year-34.7%-35.3%34.4%30.8%48.0%38.5%
5 Year-45.0%-45.9%67.4%59.3%72.2%53.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BDC ($48.03) is trading above our estimate of fair value ($46.01)

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


Price To Earnings Ratio

PE vs Industry: BDC is poor value based on its PE Ratio (22.2x) compared to the Electronic industry average (18.8x).

PE vs Market: BDC is poor value based on its PE Ratio (22.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BDC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BDC is overvalued based on its PB Ratio (2.3x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

How is Belden forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDC's forecast earnings growth (26.6% per year) is above the savings rate (1.7%).

Earnings vs Market: BDC's earnings (26.6% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: BDC's revenue (1.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BDC's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BDC's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Belden performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDC has high quality earnings.

Growing Profit Margin: BDC's current net profit margins (4.3%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: BDC's earnings have declined by -3.8% per year over the past 5 years.

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

Earnings vs Industry: BDC had negative earnings growth (-31.1%) over the past year, making it difficult to compare to the Electronic industry average (13.1%).


Return on Equity

High ROE: BDC's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Belden's financial position?


Financial Position Analysis

Short Term Liabilities: BDC's short term assets ($1.4B) exceed its short term liabilities ($722.5M).

Long Term Liabilities: BDC's short term assets ($1.4B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: BDC's debt to equity ratio (149%) is considered high.

Reducing Debt: BDC's debt to equity ratio has reduced from 219.2% to 149% over the past 5 years.

Debt Coverage: BDC's debt is not well covered by operating cash flow (19.2%).

Interest Coverage: BDC's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: BDC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BDC's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Belden before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: BDC's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BDC's dividend (0.42%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: BDC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: BDC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BDC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BDC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

John Stroup (53yo)

14.3yrs

Tenure

US$6,335,887

Compensation

Mr. John S. Stroup has been the Chief Executive Officer and President of Belden Inc. since October 31, 2005 and has been its Chairman since November 30, 2016. Mr. Stroup served as the Head of EMEA Business ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.34M) is above average for companies of similar size in the US market ($USD3.80M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Stroup
President14.3yrsUS$6.34m0.28% $6.2m
Hendrikus P. Derksen
Senior VP of Finance & CFO8.1yrsUS$4.73m0.040% $878.4k
Roel Vestjens
Executive VP & COO0.6yrsUS$3.81m0.013% $272.9k
Glenn Pennycook
Executive Vice President of Enterprise Solutions6.8yrsUS$3.83m0.016% $355.0k
Douglas Zink
VP & Chief Accounting Officer6.4yrsno data0.0053% $115.5k
Kevin Maczka
VP, Treasurer & Investor Relations0yrsno datano data
Brian Anderson
Senior VP of Legal4.8yrsno data0.010% $221.8k
Paul Turner
Senior Vice President of Sales3yrsno data0.021% $456.8k
Dean McKenna
Senior Vice President of Human Resources4.8yrsno data0.0046% $100.9k
Leo Kulmaczewski
Senior Vice President of Operations & Lean Enterprise0yrsno data0.0040% $87.6k

5.6yrs

Average Tenure

50yo

Average Age

Experienced Management: BDC's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Stroup
President14.3yrsUS$6.34m0.28% $6.2m
Bryan Cressey
Independent Director35.1yrsUS$240.27k0.42% $9.2m
Steven Berglund
Director6.2yrsUS$222.68k0.022% $485.6k
David Aldrich
Lead Independent Director0yrsUS$270.58k0.074% $1.6m
Jonathan Klein
Director4.5yrsUS$223.18k0.015% $321.8k
Lance Balk
Director19.9yrsUS$257.00k0.18% $3.8m
George Minnich
Independent Director9.8yrsUS$242.45k0.032% $709.0k
Diane Brink
Director2.2yrsUS$222.44k0.0018% $40.0k
Judy L. Brown
Independent Director12yrsUS$236.22k0.034% $734.9k

8.0yrs

Average Tenure

61yo

Average Age

Experienced Board: BDC's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Belden Inc.
  • Ticker: BDC
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$2.183b
  • Shares outstanding: 45.46m
  • Website: https://www.belden.com

Number of Employees


Location

  • Belden Inc.
  • 1 North Brentwood Boulevard
  • 15th Floor
  • Saint Louis
  • Missouri
  • 63105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BDCNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2004
QCTADB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004

Biography

Belden Inc. operates as a signal transmission solutions company in the United States and internationally. The company operates in two segments, Enterprise Solutions and Industrial Solutions. The Enterprise Solutions segment offers copper cable and connectivity solutions, fiber cable and connectivity solutions, and racks and enclosures for use in applications, such as local area networks, data centers, access control, and building automation, as well as live production and performance, video display and digital signage, and corporate communications. It also provides power, cooling, and airflow management products for mission-critical data center operations. This segment serves customers in markets comprising healthcare, education, financial, government, and corporate enterprises, as well as end-markets, including sport venues, broadcast studios, and academia. The Industrial Solutions segment offers infrastructure components and on-machine connectivity systems, including industrial and input/output (I/O) connectors, industrial cables, IP and networking cables, I/O modules, distribution boxes, ruggedized controls and sensors, and customer specific wiring solutions. This segment provides its products for use in industrial automation applications comprising network and fieldbus infrastructure; sensor and actuator connectivity; and power, control, and data transmission. The company serves distributors, original equipment manufacturers, installers, and end-users. The company was formerly known as Belden CDT Inc. and changed its name to Belden Inc. in May 2007. Belden Inc. was founded in 1902 and is based in St. Louis, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 01:34
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.