Belden Inc.

BDC

Drawing & Insulating of Nonferrous Wire

Mkt Cap

$3.967B

PE

18.29

Debt

$1.19B

Cash

$506.8M

EV

$4.651B

FCF

$227.1M

Market Cap

$3.967B

P/E Ratio

18.29

Debt

$1.19B

Cash

$506.8M

EV

$4.651B

FCF

$227.1M

Charts data: {"Earnings":[{"time":"2014-12-30","value":74449000},{"time":"2015-12-30","value":66180000},{"time":"2016-12-30","value":112575000},{"time":"2017-12-30","value":58279000},{"time":"2018-12-30","value":125963000},{"time":"2019-12-30","value":-395452000},{"time":"2020-12-30","value":-55162000},{"time":"2021-12-30","value":63925000},{"time":"2022-12-30","value":254663000},{"time":"2023-12-30","value":242556000}],"Sales":[{"time":"2014-12-30","value":2308265000},{"time":"2015-12-30","value":2309222000},{"time":"2016-12-30","value":2356672000},{"time":"2017-12-30","value":2087185000},{"time":"2018-12-30","value":2165702000},{"time":"2019-12-30","value":2131278000},{"time":"2020-12-30","value":1862716000},{"time":"2021-12-30","value":2408100000},{"time":"2022-12-30","value":2606485000},{"time":"2023-12-30","value":2512084000}],"Net Margins":[{"time":"2014-12-30","value":0.032253229156964214},{"time":"2015-12-30","value":0.028659002902276177},{"time":"2016-12-30","value":0.04776863305542731},{"time":"2017-12-30","value":0.02792229725683157},{"time":"2018-12-30","value":0.058162665038865},{"time":"2019-12-30","value":-0.18554688782974346},{"time":"2020-12-30","value":-0.029613746808423828},{"time":"2021-12-30","value":0.026545824508948965},{"time":"2022-12-30","value":0.09770361233615386},{"time":"2023-12-30","value":0.09655568842443167}],"Assets":[{"time":"2014-12-30","value":3262827000},{"time":"2015-12-30","value":3315841000},{"time":"2016-12-30","value":3806803000},{"time":"2017-12-30","value":3840613000},{"time":"2018-12-30","value":3779321000},{"time":"2019-12-30","value":3406759000},{"time":"2020-12-30","value":3139734000},{"time":"2021-12-30","value":3417677000},{"time":"2022-12-30","value":3161675000},{"time":"2023-12-30","value":3240191000}],"Stockholders Equity":[{"time":"2014-12-30","value":807186000},{"time":"2015-12-30","value":825523000},{"time":"2016-12-30","value":1461317000},{"time":"2017-12-30","value":1434866000},{"time":"2018-12-30","value":1387588000},{"time":"2019-12-30","value":965819000},{"time":"2020-12-30","value":757051000},{"time":"2021-12-30","value":956082000},{"time":"2022-12-30","value":1143950000},{"time":"2023-12-30","value":1166302000}],"ROE":[{"time":"2014-12-30","value":0.09223276915110024},{"time":"2015-12-30","value":0.08016736057020822},{"time":"2016-12-30","value":0.07703667308325299},{"time":"2017-12-30","value":0.04061633629899935},{"time":"2018-12-30","value":0.0907783866680888},{"time":"2019-12-30","value":-0.40944731880404095},{"time":"2020-12-30","value":-0.07286431165139469},{"time":"2021-12-30","value":0.06686141983637386},{"time":"2022-12-30","value":0.2226172472573102},{"time":"2023-12-30","value":0.20797014838352332}],"ROA":[{"time":"2014-12-30","value":0.049993150111850855},{"time":"2015-12-30","value":0.04238834129863284},{"time":"2016-12-30","value":0.05880341063091523},{"time":"2017-12-30","value":0.06110743258953714},{"time":"2018-12-30","value":0.08076080332948696},{"time":"2019-12-30","value":0.0608223240916073},{"time":"2020-12-30","value":0.03994287414156741},{"time":"2021-12-30","value":0.03644580807372961},{"time":"2022-12-30","value":0.11491820000474431},{"time":"2023-12-30","value":0.09799360593248978}]}

Belden Inc. provides portfolio of signal transmission solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It operates in two segments, Enterprise Solutions and Industrial Automation Solutions. The Enterprise Solutions segment offers copper cable and connectivity solutions, fiber cable and connectivity solutions, interconnect panels, racks and enclosures, and signal extension and matrix switching systems for use in applications, such as local area networks, data centers, access control, 5G, fiber, and home and building automation. It also provides power, cooling, and airflow management products for mission-critical data center operations; and end-to-end fiber and copper network systems. This segment serves commercial real estate, hospitality, healthcare, education, financial, government, and broadband and wireless service providers, as well as end-markets, including sport venues, stadiums, data centers, military installations, and academia. The Industrial Automation Solutions segment offers infrastructure components and on-machine connectivity systems; and industrial Ethernet switches, network management software, routers, firewalls, gateways, input/output (I/O) connectors/systems, industrial Ethernet cables, optical fiber industrial Ethernet cables, Fieldbus cables, IP and networking cables, I/O modules, distribution boxes, and customer specific wiring solutions. This segment provides its products for use in applications comprising network and fieldbus infrastructure; sensor and actuator connectivity; and power, control, and data transmission; and supplies heat-shrinkable tubing and wire management products to protect and organize wire and cable assemblies. It 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.

Sector

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10-Q
4/1/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Belden 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	$227.1M	$224.1M	$221.2M	$218.3M	$215.5M	$212.7M	$209.9M	$207.2M	$204.5M	$201.8M	$199.2M	$1.992B
DCF		$194.9M	$167.3M	$143.6M	$123.2M	$105.7M	$90.75M	$77.88M	$66.84M	$57.37M	$49.23M	$492.3M
Value	$1.569B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 14%

Earnings Stability 17%

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 increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	2.9%	4.8%	2.8%	5.8%	-19%	-3%	2.7%	9.8%	9.7%	9%
ROA	4.2%	5.9%	6.1%	8.1%	6.1%	4%	3.6%	11%	9.8%	9.1%
ROE	8%	7.7%	4.1%	9.1%	-41%	-7.3%	6.7%	22%	21%	19%

What is the average Net Margin?

The average Net Margin over the past 5 years is +1.06%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +3.14%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.18%.

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

The trend of ROA over the past 5 years is +0.7%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +1.77%.

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

The trend of ROE over the past 5 years is +7.49%.

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	9.68	6.30	8.29	7.76	8.74	19.13	8.16	6.66	5.99	5.24
Debt Equity	2.13	1.12	1.10	1.07	1.51	2.10	1.54	1.03	1.04	1.03
MIN
Graham Stability	-	-	69%	100%	-400%	-	-	-	100%	-400%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.24.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.75.

What is the Graham’s Stability?

Graham’s Stability measure stands at -4.00.

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 been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	0.92%	3%	10%	-3.6%	1.1%
Net Income	12%	14%	-	-4.8%	17%
Stockholders Equity	-3.2%	-3.4%	15%	2%	-2.3%
FCF	-3.5%	1.2%	35%	15%	1.2%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.01%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.15%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +14%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +16.84%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -3.41%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -2.26%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +1.18%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.19%.