Barnes Group Inc

B

Miscellaneous Fabricated Metal Products

Mkt Cap

$2.036B

PE

425.52

Debt

$1.335B

Cash

$84.1M

EV

$3.287B

FCF

$20.25M

Market Cap

$2.036B

P/E Ratio

425.52

Debt

$1.335B

Cash

$84.1M

EV

$3.287B

FCF

$20.25M

Charts data: {"Earnings":[{"time":"2014-12-30","value":118370000},{"time":"2015-12-30","value":121380000},{"time":"2016-12-30","value":135601000},{"time":"2017-12-30","value":59415000},{"time":"2018-12-30","value":166186000},{"time":"2019-12-30","value":158350000},{"time":"2020-12-30","value":63375000},{"time":"2021-12-30","value":99873000},{"time":"2022-12-30","value":13479000},{"time":"2023-12-30","value":15996000}],"Sales":[{"time":"2014-12-30","value":1262006000},{"time":"2015-12-30","value":1193975000},{"time":"2016-12-30","value":1230754000},{"time":"2017-12-30","value":1436499000},{"time":"2018-12-30","value":1495889000},{"time":"2019-12-30","value":1491118000},{"time":"2020-12-30","value":1124391000},{"time":"2021-12-30","value":1258846000},{"time":"2022-12-30","value":1261868000},{"time":"2023-12-30","value":1450871000}],"Net Margins":[{"time":"2014-12-30","value":0.09379511666347069},{"time":"2015-12-30","value":0.10166042002554493},{"time":"2016-12-30","value":0.11017717594255229},{"time":"2017-12-30","value":0.04136097553844451},{"time":"2018-12-30","value":0.11109514141757844},{"time":"2019-12-30","value":0.10619548553501466},{"time":"2020-12-30","value":0.05636384496140578},{"time":"2021-12-30","value":0.07933694828438109},{"time":"2022-12-30","value":0.010681782880618258},{"time":"2023-12-30","value":0.01102510147352866}],"Assets":[{"time":"2014-12-30","value":2073885000},{"time":"2015-12-30","value":2061866000},{"time":"2016-12-30","value":2137539000},{"time":"2017-12-30","value":2365716000},{"time":"2018-12-30","value":2808970000},{"time":"2019-12-30","value":2738335000},{"time":"2020-12-30","value":2676226000},{"time":"2021-12-30","value":2576820000},{"time":"2022-12-30","value":2413730000},{"time":"2023-12-30","value":3308014000}],"Stockholders Equity":[{"time":"2014-12-30","value":1111793000},{"time":"2015-12-30","value":1127753000},{"time":"2016-12-30","value":1168358000},{"time":"2017-12-30","value":1260321000},{"time":"2018-12-30","value":1203056000},{"time":"2019-12-30","value":1270528000},{"time":"2020-12-30","value":1382677000},{"time":"2021-12-30","value":1428766000},{"time":"2022-12-30","value":1346327000},{"time":"2023-12-30","value":1362263000}],"ROE":[{"time":"2014-12-30","value":0.10646766079656915},{"time":"2015-12-30","value":0.1076299508846352},{"time":"2016-12-30","value":0.11606117303086896},{"time":"2017-12-30","value":0.047142751727536084},{"time":"2018-12-30","value":0.13813654559721245},{"time":"2019-12-30","value":0.1246332233528108},{"time":"2020-12-30","value":0.045834999786645764},{"time":"2021-12-30","value":0.06990157940488506},{"time":"2022-12-30","value":0.01001168364000722},{"time":"2023-12-30","value":0.011742225987199241}],"ROA":[{"time":"2014-12-30","value":0.08678108959754277},{"time":"2015-12-30","value":0.08179193022242959},{"time":"2016-12-30","value":0.09099436314378358},{"time":"2017-12-30","value":0.08888556360949497},{"time":"2018-12-30","value":0.08250853515701485},{"time":"2019-12-30","value":0.08634736071371837},{"time":"2020-12-30","value":0.04609849840783252},{"time":"2021-12-30","value":0.05821826902926863},{"time":"2022-12-30","value":0.023664204364199807},{"time":"2023-12-30","value":0.02690194176929118}]}

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. This segment 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, it manufactures and supplies precision mechanical products, including mechanical springs, and high-precision punched and fine-blanked components used in transportation and industrial applications. This segment sells its products primarily through its direct sales force and distribution channels. The Aerospace segment produces fabricated and precision machined components and assemblies for turbine engines; and nacelles and structures for commercial and defense-related aircraft. It also provides aircraft engine component maintenance, repair, and overhaul services for turbine engine manufacturers, commercial airlines, and defense market; and manufactures and delivers aerospace aftermarket spare parts. This segment serves original equipment manufacturing industry. Barnes Group Inc. was founded in 1857 and is headquartered in Bristol, Connecticut.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Barnes Group Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$20.25M	$17.48M	$15.09M	$13.03M	$11.24M	$9.705M	$8.377M	$7.231M	$6.241M	$5.387M	$4.65M	$46.5M
DCF		$15.2M	$11.41M	$8.565M	$6.428M	$4.825M	$3.622M	$2.718M	$2.04M	$1.531M	$1.149M	$11.49M
Value	$68.99M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -22%

Earnings Stability 48%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	10%	11%	4.1%	11%	11%	5.6%	7.9%	1.1%	1.1%	0.31%
ROA	8.2%	9.1%	8.9%	8.3%	8.6%	4.6%	5.8%	2.4%	2.7%	3.2%
ROE	11%	12%	4.7%	14%	12%	4.6%	7%	1%	1.2%	0.36%

What is the average Net Margin?

The average Net Margin over the past 5 years is +6.24%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -2.18%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.4%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.3%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +6.67%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.72%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.11	2.95	3.67	5.29	4.33	4.05	4.54	14.14	22.97	65.91
Debt Equity	0.45	0.43	0.42	0.79	0.66	0.51	0.43	0.43	0.96	1.00
MIN
Graham Stability	-	-	47%	100%	100%	50%	77%	13%	27%	13%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 65.91.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 3.38.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.13.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	2.4%	-0.61%	8.9%	15%	0.58%
Net Income	-26%	-37%	-37%	19%	-4%
Stockholders Equity	2.2%	2.5%	-0.49%	1.2%	-0.41%
FCF	-15%	-21%	-31%	40%	-3.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -0.61%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.58%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -37.38%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -4.04%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +2.52%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.41%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -20.63%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -3.64%.