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Belden Inc (BDC)
NYSE:BDC
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Belden
(NYSE:BDC)
71Outperform
Positive Factors
Market Positioning
Belden's revenue mix is heavily weighted to the Americas region with minimal exposure to China, directly positioning the company to benefit from the reindustrialization dynamics.
Revenue Growth
Automation Solutions revenue was up 15% year-over-year and was 52% of total revenue, with orders up a healthy 21% year-over-year.
Negative Factors
Earnings Outlook
Management’s conviction of reaching the $8 EPS target this year has softened, primarily driven by FX headwinds and a lower first quarter revenue base than previously anticipated.
Tariff Impact
Tariff uncertainty likely weighs on performance near-term, though demand trends underpinning Belden’s business are expected to strengthen as the macro stabilizes.
Belden (BDC) vs. S&P 500 (SPY)
Market Cap
$3.67B
Dividend Yield0.21%
Average Volume (3M)345.27K
Price to Earnings (P/E)19.2
Beta (1Y)1.12
Revenue Growth-2.03%
EPS Growth-14.97%
CountryUS
Employees7,500
SectorTechnology
Sector Strength44
IndustryCommunication Equipment
Share Statistics
EPS (TTM)4.81
Shares Outstanding39,757,336
10 Day Avg. Volume358,952
30 Day Avg. Volume345,270
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.67
Price to Cash Flow (P/CF)5.90
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$131.40Price Target Upside42.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Belden Business Overview & Revenue Model
Company DescriptionBelden 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 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 copper and fiber 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 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.
How the Company Makes MoneyBelden Inc. generates revenue primarily through the sale of its signal transmission products and solutions. Its key revenue streams include industrial connectivity solutions, enterprise networking products, and broadcast solutions. The company leverages its global presence and expertise to cater to diverse industries, offering a broad portfolio of high-quality products. Significant factors contributing to its earnings include its focus on innovation, strategic acquisitions, and long-term partnerships with leading companies in its target markets.
Belden Financial Statement Overview
Summary
Belden's financial performance is characterized by strong cash flow generation and profitability, as evidenced by healthy margins. However, there is a slight decline in revenue growth, which needs monitoring.Income Statement
Belden's income statement reflects steady growth and profitability. The gross profit margin has remained robust, indicating strong cost control and pricing strategies. However, recent trends show a slight decline in total revenue. The net profit margin and EBIT margins are healthy, suggesting good operational efficiency. Nevertheless, the slight dip in revenue growth rate could be a concern if it persists.75
Positive
Balance Sheet
Belden's balance sheet shows a stable financial position with a reasonable debt-to-equity ratio, suggesting manageable leverage levels. The equity ratio indicates a solid equity base, though the return on equity has seen fluctuations, reflecting variable net income performance over the years. The company has maintained sufficient assets to cover its liabilities, enhancing financial stability.70
Positive
Cash Flow
The cash flow statement highlights strong cash generation capabilities, with consistent positive operating cash flow. The free cash flow growth rate showcases the company's ability to generate cash post capital expenditures, which is a positive indicator for reinvestment and shareholder returns. The operating cash flow to net income ratio indicates effective cash conversion from profits.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.46B | 2.51B | 2.61B | 2.41B | 1.86B | Gross Profit |
| 922.22M | 954.97M | 916.29M | 854.36M | 663.29M | EBIT |
| 266.46M | 317.52M | 363.33M | 296.53M | 125.41M | EBITDA |
| 266.46M | 418.83M | 449.38M | 365.58M | 233.73M | Net Income Common Stockholders |
| 198.43M | 242.76M | 254.66M | 63.92M | 54.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 370.30M | 597.04M | 687.68M | 643.76M | 501.99M | Total Assets |
| 3.26B | 3.24B | 3.16B | 3.42B | 3.14B | Total Debt |
| 1.23B | 1.30B | 1.24B | 1.53B | 1.62B | Net Debt |
| 859.85M | 701.05M | 549.58M | 883.46M | 1.12B | Total Liabilities |
| 1.97B | 2.07B | 2.02B | 2.46B | 2.38B | Stockholders Equity |
| 1.29B | 1.17B | 1.14B | 955.29M | 750.58M |
| Cash Flow | Free Cash Flow | |||
| 222.98M | 202.91M | 176.20M | 177.42M | 83.15M | Operating Cash Flow |
| 352.08M | 319.64M | 281.30M | 272.06M | 173.36M | Investing Cash Flow |
| -426.75M | -200.36M | 168.41M | -92.00M | -31.64M | Financing Cash Flow |
| -143.72M | -211.93M | -393.21M | -32.93M | -74.91M |
Belden Technical Analysis
Negative
92.21
Price Trends
103.05
Negative
110.44
Negative
109.16
Negative
Market Momentum
-2.90
Negative
45.43
Neutral
59.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDC, the sentiment is Negative. The current price of 92.21 is below the 20-day moving average (MA) of 96.47, below the 50-day MA of 103.05, and below the 200-day MA of 109.16, indicating a bearish trend. The MACD of -2.90 indicates Negative momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDC.
Belden Risk Analysis
Belden disclosed 31 risk factors in its most recent earnings report. Belden reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Belden Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.67B | 19.19 | 16.13% | 0.21% | -2.03% | -14.97% | |
68 Neutral | $962.33M | 27.21 | 6.29% | ― | -4.49% | 119.80% | |
63 Neutral | $1.96B | 52.32 | 44.39% | ― | 19.04% | ― | |
58 Neutral | $9.82B | 10.00 | -6.63% | 3.09% | 7.49% | -11.58% | |
56 Neutral | $2.18B | ― | -5.53% | ― | -0.67% | -856.71% | |
52 Neutral | $3.46B | ― | -48.63% | ― | -1.72% | -94.98% | |
40 Underperform | $1.47B | ― | -152.77% | ― | -24.49% | -250.61% |
* Technology Sector Average
Performance Comparison
BDC
Belden
94.73
10.66
12.68%
DGII
Digi International
26.49
-3.91
-12.86%
EXTR
Extreme Networks
11.41
0.32
2.89%
LITE
Lumentum Holdings
51.64
9.63
22.92%
VIAV
Viavi Solutions
9.83
1.82
22.72%
PI
IMPINJ
74.29
-49.39
-39.93%
Belden Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -20.67% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong performance in the fourth quarter with revenue and EPS exceeding expectations, robust free cash flow, and positive order momentum. However, there were challenges such as a year-over-year revenue decline, currency exchange headwinds, and short-term market uncertainty. The highlights and lowlights appear to be balanced, reflecting both significant achievements and challenges.Highlights
Fourth Quarter Revenue and Earnings Exceed Expectations
Revenue totaled $666 million, up 21% compared to the prior year, and earnings per share came in at $1.92, exceeding the high end of guidance.
Strong Organic Growth in Key Markets
Organic growth of 14% for the quarter, with particular strength in the Americas, showing 23% organic growth.
Robust Free Cash Flow
Full year free cash flow was strong at $223 million, slightly ahead of expectations.
Successful Capital Deployment
Deployed $295 million towards tuck-in acquisitions and repurchased approximately half a million shares for $55 million during the fourth quarter.
Increased EBITDA Margins
EBITDA margins increased by 110 basis points year-over-year to 17.1% in the fourth quarter.
Positive Order Momentum
Orders for the quarter were up 23% compared to the prior year, with full-year orders reaching nearly $2.5 billion, up 9%.
Advancements in Solutions Capabilities
Significant strides in advancing solutions capabilities and expanding into smart infrastructure.
Lowlights
Year-Over-Year Revenue Decline
Revenue for the year was nearly $2.5 billion, down 2% from the prior year.
Decline in Organic Revenue
Organic revenue was down 6% for the year, with Automation Solutions down 6% and Smart Infrastructure Solutions down 5%.
Impact of Currency Exchange
Guidance includes a currency exchange headwind of approximately $15 million in revenue and $0.05 in EPS due to a stronger U.S. dollar.
Short-Term Market Uncertainty
Short-term friction and uncertainty due to policy decisions affecting customer order patterns.
Company Guidance
During the Belden Fourth Quarter 2024 earnings call, the company reported significant financial achievements, exceeding expectations with a 21% year-over-year revenue growth to $666 million and an earnings per share (EPS) of $1.92, surpassing the high end of their guidance. The adjusted EBITDA margins improved by 110 basis points to 17.1%. For the full year, Belden's orders increased by 9%, reaching nearly $2.5 billion, while free cash flow totaled $223 million, representing 9.1% of revenue. The company deployed $295 million in tuck-in acquisitions and repurchased 1.3 million shares for $133 million, contributing to a strong balance sheet with a net debt to EBITDA ratio of 1.8 times. Looking ahead, Belden anticipates a revenue increase of 13% to 16% for the first quarter of 2025, with an EPS projected between $1.43 and $1.53, while also managing currency exchange headwinds. The company remains optimistic about its long-term growth prospects, driven by its solutions transformation and strategic capital allocation.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.