Corporate Webpages Barnes Group Inc.
Barnes Group is what we call an "old line company" with a long
history dating back at least to the mid-1800's. It is primarily
associated with aerospace, supplying components thereto, but
also to a few consumer electronic, farm equipment, home
appliance and medical device manufacturers. Aerospace is the
"biggie" in the revenue source, primary customer being General
Electric. Through its Associated Spring division, the company
seems particularly involved in the manufacture of different
types of "springs," and much of the news consists of
introduction of new products in that area.
Have you taken a look at Lockheed-Martin lately? This stock
pays better than a 5% dividend and has maintained or increased
that dividend consistently over the last 10 years or more. From
that, one might conclude the defense-aerospace industry is
really solid or even "hot."
We found this company marginally satisfactory in financial
ratios but there were some extraordinary items in the income
statement that amounted to 9.5% of income. (We generally assess
a penalty in our ratings for that.) Barnes may take a hit for
selling off its European operations. Also, the general market is
very weak at this moment, which means that technical charting
considerations are penalizing almost all stocks we review.
Still, a possible impending severe cut in this country's defense
budget could impact Barnes.
We think two Barnes executives are compensated too high, and
shareholder rights provisions are hurting other stockholders.
Barnes is no Lockheed, but it does pay a significant 1.7% dividend.
Its price to earnings growth (PEG) ratio is one of the lowest in
the aerospace industry.
Analysts and researchers are a bit tame on this stock, slightly
biased to the negative. Institutions are generally sellers at
this time.
What we can say about this stock is that it is in a
relatively-strong industry group and is performing well within
that group. Often on not-too-exciting review results we look
for channeling opportunities, and one might consider this a
channeling stock, although it is at the upper end of its trading
range, making it a possible short sale candidate.
The company has an interesting website, and does a lot of
business through catalog sales. There does not appear to be
much news on this stock other than what we have reported above.
11-20-2011: Barnes Group Inc. (B): Catalog Seller of Industrial Components for Aerospace
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Right Time Study
Channel Potential
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Stock Fetcher
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Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Barnes Group Inc. (B ) Sector: Industrial Goods
123 Main Street Industry: Industrial Equipment & Compon
PO Box 489 Exchange: NYSE
Bristol, CT 06010-6376
Barnes Group Inc. operates as an international logistical services
company, and aerospace and industrial components manufacturer in the
United States, Belgium, Brazil, Canada, China, Denmark, France, Germany,
Holland, Italy, Korea, Mexico, Singapore, Spain, Sweden, Switzerland,
Thailand, and the United Kingdom. It operates in two segments, Logistics
and Manufacturing Services, and Precision Components. The Logistics and
Manufacturing Services segment provides value-added logistical support
services, including inventory management, technical sales, and supply
chain solutions for maintenance, repair, operating, and production
supplies and services; and repair services comprising the manufacture of
spare parts for the refurbishment and repair of highly engineered
components, and assemblies for commercial and military aviation. The
Precision Components segment supplies precision springs ranging from fine
hairsprings for electronics and instruments to large heavy-duty springs
for machinery, as well as precision-machined and fabricated components and
assemblies for original equipment manufacturer turbine engine, and
airframe and industrial gas turbine builders, as well as the military.
This segment also manufactures and supplies precision mechanical springs,
and fine-blanked components used in transportation and industrial
applications; nitrogen gas springs and manifold systems used to control
stamping presses; and retention rings that position parts on a shaft or
other axis. It serves durable goods manufacturers operating in various
industries, including transportation, consumer products, farm equipment,
telecommunications, medical devices, home appliances and electronics, and
airframe and gas turbine engines. The company was founded in 1857 and is
headquartered in Bristol, Connecticut.
Last Trade: 23.96 52-Week Range: 25.85 - 17.47
Trade Date: 11-19 Avg. Volume: 452,051 Shares
Index Membership: Employees: 4,906
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation
(Medium Concern), Shareholder Rights (High Concern).
EPS: 1.35 Dividend Amount: $ 0.40 Yield: 1.70%
Ex-Dividend Date: Nov 28, 20 Mkt Cap: $ 1,310,000K
Payout Ratio: 24.00%
Last Split Factor (new for old): 2:1 Split Date: Jun 12, 20
Key Statistics:
Enterprise Value: $ 1,620,000K Revenue (ttm) : $ 1,260,000K
Gross Profit: $ 409,160K
Earnings before Income Tax, Depreciation and Amortization: $ 171,900K
Enterprise Value/Revenue (ttm): 1.29 Revenue per Share: $ 22.75
Enterprise Value/EBITDA (ttm): 9.43 Qtrly Rev Growth (y to y): 12.20%
P/E Ratio (fwd projected): 13.85 P/E Ratio (current): 17.74
P/E Growth Ratio (5 yr expected): 0.54 Operating Margin: 9.10%
Price/Sales Ratio: 1.03 Profit Margin: 6.07%
Price/Book Value: 1.65 Book Value: $ 14.32/sh.
Return on Assets: 4.98% Net Income Avl to Common: $ 76,170K
Return on Equity: 10.09% Diluted Earnings/Share: $ 1.35
Qrtly Earnings Growth (yoy): 53.90%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 38,840K Operating Cash Flow:$ 97,240K
Total Debt: $ 347,740K Lvgd Free Cash Flow:$ 48,870K
Total Debt/Equity: 44.38
Total Cash/Share: $ 0.71
Current Ratio: 2.51
Share Statistics: Stock Price History:
Shares Outstanding: 54,740K Stk 52-Week Change: 22.49%
Float: 46,540K S&P 500 52-Wk Chng: 1.49%
Sh. Short % of Float: 8.60% 50-Day Moving Avg: 22.38
Short Ratio: 8.00 200-Day Moving Avg: 22.81
% Held by Institutions: 82.20% Beta: 1.95
% Held by Insiders: 15.78%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec 11 Mar 12 Dec 11 Dec 12
Average Earnings Estimate 0.32 0.46 1.47 1.73
Average Revenue Estimate 12M 346M 1,280M 1,370M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): -34.000 EPS Growth (Qrtly YoY): 5.667
PEG Ratio (ttm, 5 yr expected): 2.833 P/E Ratio (ttm): 6.800
Revenue Growth (Qrtly YoY): 2.125
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 1,133,199 1,034,159 1,362,091
Cost of Revenue 724,044 671,110 847,641
Gross Profit 409,155 363,049 514,450
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 322,625 302,534 366,510
Non-Recurring Expenses 0 0 0
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 86,530 60,515 147,940
Income from Continuing Operations:
Total Other Income/Expenses Net -2,480 2,027 -2,327
Earnings Before Interest & Taxes 84,050 62,542 145,613
Interest Expense 20,014 22,596 19,517
Income Before Taxes 64,036 39,946 126,096
Income Tax Expense 10,758 945 29,014
Minority Interest 0 0 0
Net Income from Continuing Op.s 53,278 39,001 97,082
Non-recurring Events:
Discontinued Operations 0 0 -10,103
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 53,278 39,001 86,979
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 53,278 39,001 86,979
Quarterly Income Statements: All numbers in thousands)
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Total Revenue 325,395 327,949 318,754 283,269
Cost of Revenue 210,864 207,362 203,175 183,211
Gross Profit 114,531 120,587 115,579 100,058
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 81,586 87,066 86,130 81,710
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 32,945 33,521 29,449 18,348
Income from Continuing Operations:
Total Other Income/Expenses Net 424 -297 -505 -319
Earnings Before Int. & Taxes 33,369 33,224 28,944 18,029
Interest Expense 1,918 2,364 3,668 4,741
Income Before Taxes 31,451 30,860 25,276 13,288
Income Tax Expense 8,206 8,528 6,204 1,766
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 23,245 22,332 19,072 11,522
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 23,245 22,332 19,072 11,522
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 23,245 22,332 19,072 11,522
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 13,450 17,427 20,958
Short Term Investments 0 0 0
Net Receivables 208,164 183,899 200,865
Inventory 216,382 190,792 240,805
Other Current Assets 12,212 10,562 14,881
Total Current Assets 450,208 402,680 477,509
Long-Term Investments 0 0 0
Property, Plant & Equipt 218,434 224,963 235,035
Goodwill 384,241 373,564 361,930
Intangible Assets 290,798 303,689 316,817
Accumulated Amortization 0 0 0
Other Assets 16,854 16,444 15,612
Deferred Long Term Asset Charges 42,722 30,650 40,731
Total Assets 1,403,257 1,351,990 1,447,634
Current Liabilities:
Accounts Payable 184,793 159,126 173,772
Short/Current Long Term Debt 98,071 30,162 15,386
Other Current Liabilities 0 0 0
Total Current Liabilities 282,864 189,288 189,158
Long Term Debt 259,647 321,306 469,113
Other Liabilities 148,627 156,683 205,952
Deferred LT Liability Charges 0 0 0
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 691,138 667,277 864,223
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 565 560 552
Retained Earnings 514,240 478,704 476,017
Treasury Stock -44,379 -15,839 -46,705
Capital Surplus 278,287 270,784 243,463
Other Stockholder Equity -36,594 -49,496 -89,916
Total Stockholder Equity 712,119 684,713 583,411
Net Tangible Assets 37,080 7,460 -95,336
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Current Assets:
Cash & Cash Equivalents 38,843 16,577 16,827 13,450
Short Term Investments 0 0 0 0
Net Receivables 257,145 260,597 237,215 208,164
Inventory 227,463 229,929 217,313 216,382
Other Current Assets 12,179 12,720 13,371 12,212
Total Current Assets 535,630 519,823 484,726 450,208
Long-Term Investments 0 0 0 0
Property, Plant & Equipt 216,263 227,201 225,185 218,434
Goodwill 389,972 405,972 393,394 384,241
Intangible Assets 281,282 286,160 289,291 290,798
Accumulated Amortization 0 0 0 0
Other Assets 19,323 17,521 17,188 16,854
Deferred LT Asset Charges 24,147 29,027 41,078 42,722
Total Assets 1,466,617 1,485,704 1,450,862 1,403,257
Current Liabilities:
Accounts Payable 204,888 202,963 173,856 184,793
Current Portion LT Debt 8,913 4,654 97,840 98,071
Other Current Liabilities 0 0 0 0
Total Current Liabilities 213,801 207,617 271,696 282,864
Long Term Debt 338,828 327,730 280,076 259,647
Other Liabilities 130,441 138,162 144,379 148,627
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 683,070 673,509 696,151 691,138
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 585 584 571 565
Retained Earnings 565,525 546,759 528,896 514,240
Treasury Stock -67,836 -45,043 -45,002 -44,379
Capital Surplus 313,113 305,316 288,084 278,287
Other Stockholder Equity -27,840 4,579 -17,838 -36,594
Total Stockholder Equity 783,547 812,195 754,711 712,119
Net Tangible Assets 112,293 120,063 72,026 37,080
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 53,278 22,332 86,979
Operating Activites:
Depreciation 58,497 57,407 52,403
Adjustments to Net Income 7,481 990 6,527
Changes in Accounts Recv'bls -35,891 17,531 26,329
Changes in Liabilities 14,230 -33,449 -52,413
Changes in Inventories -24,006 53,523 -2,725
Changes in Other Op'ing Actv's 0 8,480 -5,292
Total Cash Flow fr Operations 65,760 143,483 111,808
Investing Activities:
Capital Expenditures -28,759 -30,502 -51,869
Investments 0 0 0
Other Cash Flows fr Investing 0 4,422 -54,804
Total Cash Flows fr Investing -30,299 -26,080 -106,673
Financing Acitivies:
Dividends Paid -17,461 -25,600 -33,345
Sale or Purchase of Stock -22,354 6,373 -29,038
Net Borrowings 722 -101,810 59,521
Other Cash Flows fr Financing 0 -832 1,101
Total Cash Flows fr Financing -39,300 -121,869 -1,761
Effect of Exchange Rate Change -138 935 -3,016
Change in Cash & Cash Equiv.s -3,977 -3,531 358
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Net Income 23,245 22,332 19,072 11,522
Operating Activites:
Depreciation 15,549 15,295 14,644 15,258
Adjustments to Net Income 1,354 1,649 1,374 1,896
Changes in Accounts Recv'bls -2,587 864 -25,739 -8,220
Changes in Liabilities 1,608 19,628 -19,034 9,120
Changes in Inventories -1,563 -11,383 1,561 -4,514
Changes in Other Oper'g Acts 0 -3,392 3,471 -6,299
Total Cash Flow f Operations 38,133 44,993 -4,651 18,763
Investing Activities:
Capital Expenditures -5,827 -6,854 -12,488 -6,296
Investments 0 0 0 0
Other Cash Flows fr Investing 0 1,104 -3,097 -531
Total Cash Flows fr Investing -7,401 -5,750 -15,585 -6,827
Financing Acitivies:
Dividends Paid -4,432 -4,414 -4,351 -4,302
Sale or Purchase of Stock -21,626 18,327 7,759 -17,211
Net Borrowings 10,707 -44,869 19,285 2,713
Other Cash Flows fr Financing -1,967 -9,851 -83 -47
Total Cash Flows fr Financing -7,427 -39,560 23,102 -22,231
Effect of Exchange Rate Chg 0 0 0 67
Change in Cash & Cash Equiv. 22,266 -250 3,377 -10,274
B Barnes Group Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.5784 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: -0.3800 Forward P/E Ratio < 28? 2.0217
Sales Tests:
Price/Sales Ratio < 2.3? 2.2330 Inventory/Sales < 5%? 0.2619
Sales < $1 billion? 0.8825 Operating Margin < 7.5%? 0.8242
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0090 Long-Term Debt Service: 2.7426
LTD Being Reduced? 1.2000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 1.2550 Working Capital >= 1.5? 0.7983
Leverage Ratio < 20%? 0.7993 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 1.3844 Inventory Turnover > 1? 2.7880
Shares Out Decreasing? 1.2000 Market Cap.> 1.5 Billion? 1.1450
Profit Margin > 7.5%? 0.8093
Income Tests:
Dividend Yield > 2.0%? 3.0000 EPS Annual Growth > 10%? 3.0000
Enterprise Value/Revenue: 0.8600 EPS 5-yr Growth > 20%? -2.1520
Enterprise Value/EBITDA: 1.3471 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 3.0000 Collection < 45 days? 0.6712
Rev. Qtrly Growth > 15%? 1.8300 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 3.0000 Borrowing Int. Rate< 6%? 1.6373
Stock Performance Tests:
Volatility > 25%? 1.5476 % Held by Insiders < 5%? 0.3169
Beta > 1.25? 1.5600 % Held by Institut. < 50? 0.6083
50 Da MA > 200 Da MA? -0.0538 % Held by Institut. > 30? 2.7400
52-Wk Change vs. S&P 500: 0.0993 Short Ratio > 5? 1.6000
Price/Book Value < 3? 2.3500 Short % of Float > 20? 0.4300
Return on Assets > 17%? 0.2929 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.9898 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 1.9147
Cash Flow / Assets >.10? 0.3332
B Barnes Group Inc. Overall Zenith Index: 1.3865
Financial Statements |
Income Statement:
Balance Sheet:
Cash Flow Statement:
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Barnes Group Inc.:
Symbol? B
Total Months Available: 47
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
22.00 18.81 25.85 20.22 25.15 17.47
RANGE = 25.85 TO 17.47 Close = 23.59
CHANNEL = 22.00 TO 20.22 Degree = 2
Volatility = 7.55% Index = 1
Intraday Chart |
2 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | - 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | - 1 |
| Ratios | + 1 |
| Market Grader | - 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | - 1 |
| Right Time Study | - 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | - 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 1 |
Place 1,250 shares of Barnes Group Inc. (B) on the Active List.
