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Barco NV (BCNAY)
OTHER OTC:BCNAY
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Barco
(OTC:BCNAY)
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Rating:64Neutral
Price Target:
$6.50
▼(-6.61% Downside)
Action:ReiteratedDate:02/18/26
The score is driven mainly by solid financial quality (good margins and low leverage) and supportive valuation (moderate P/E and strong dividend yield). Offsetting these are weak technicals (downtrend and negative momentum) and execution risks highlighted on the call—especially Healthcare profitability pressure and limited order visibility—despite management’s positive FY2026 growth outlook.
Positive Factors
Sustained Healthy Margins
Stable ~40% gross margins and improving net margin indicate durable product-level economics and pricing power across hardware and software. Sustained margins provide buffer versus revenue volatility and support reinvestment, dividends and margin-accretive shift to software/recurring revenue over time.
Conservative Balance Sheet / Net Cash
Very low leverage and a net cash position give the company financial flexibility to fund factory upgrades, shift to OpEx models, pursue M&A or sustain dividends through cyclical troughs without forcing distressed financing, reducing solvency and liquidity risk long-term.
Structural Shift to Recurring Revenue
Momentum in Entertainment and a deliberate move to recurring models (CaaS) increases revenue visibility, customer lifetime value and margin durability. Recurring streams diversify hardware cyclicality and can convert high upfront costs into long-term, predictable cash flows and higher lifetime margins.
Negative Factors
Recent Sharp Revenue Decline
Material top-line deterioration undermines operating leverage and could erode capital efficiency if sustained. Even with healthy margins, prolonged revenue contraction compresses absolute EBITDA, weakens free cash flow conversion and raises execution risk for hitting mid-term targets.
Healthcare Segment Underperformance
Persistent weakness in Healthcare—driven by U.S. spending delays, tariff and FX headwinds and weaker renewals—signals structural exposure to public spending cycles and trade policy. Recovery timing uncertainty risks group margin upside and complicates path to 2028 targets.
Reduced Order Visibility / Shorter Lead Times
Shorter lead times and later bookings shrink forward visibility, making demand forecasting, capacity planning and working-capital management harder. This structural shift raises execution risk, increases margin volatility and limits predictable revenue conversion over multi-quarter horizons.
Barco (BCNAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.17B
Dividend Yield4.08%
Average Volume (3M)0.00
Price to Earnings (P/E)13.6
Beta (1Y)0.41
Revenue Growth0.82%
EPS Growth42.23%
CountryUS
Employees2,944
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.34
Shares Outstanding185,833,280
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)0.76
Price to Sales (P/S)0.56
P/FCF Ratio8.88
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit1.95
Enterprise Value/Ebitda6.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.56
Revenue Forecast (FY)$1.20B
Barco Business Overview & Revenue Model
Company DescriptionBarco NV, together with its subsidiaries, develops visualization solutions for the entertainment, enterprise, and healthcare markets worldwide. The company operates through three divisions: Entertainment, Enterprise, and Healthcare. It offers cinema, installation, postproduction, rental, simulation, and virtual reality projectors; presentation switchers and screen management systems, scalers, cards, and controllers; LED image processing and indoor LED displays; and laser, LCD, LED rear-projection, and LED video walls, as well as video wall controllers and upgrade kits. The company also provides wireless conferencing and presentation systems. In addition, it offers 3D sound products; options and accessories, such as boards/cards, lamps, lenses, mechanics, sensors, and others; cinema software and control room collaboration systems; visual display systems comprising canvas, caves, power walls, reconfigurable displays, and transportable caves; and a portfolio of support, maintenance, training, and professional services. Further, the company provides critical decision-making solutions, such as breakout and control rooms, field workers, and operators; networked solutions for education, meetings, trainings, and operating rooms; operational collaboration systems; and AV streaming for encoders and decoders, and software clients. Additionally, it offers software products for clinical collaboration; and medical display systems, as well as solutions for operating rooms. Barco NV was founded in 1934 and is headquartered in Kortrijk, Belgium.
How the Company Makes MoneyBarco generates revenue primarily through the sale of its hardware and software products, as well as through ongoing service and support contracts. Key revenue streams include the sale of projection systems and displays for cinemas and healthcare facilities, which are complemented by software solutions that enhance image quality and operational efficiency. Additionally, Barco earns income from service agreements, maintenance contracts, and training services for its products. The company also benefits from strategic partnerships with various industry leaders and technology providers, which help expand its market reach and drive innovation in its product offerings.
Barco Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call balances clear commercial and operational progress (group revenue growth at constant currency, EUR 125m EBITDA, 20% EPS growth, strong Entertainment momentum, progress on sustainability targets and recurring-revenue initiatives such as HDR/Cinema-as-a-Service) against persistent headwinds (Healthcare EBITDA decline, U.S. tariffs and FX pressure, shorter order cycles reducing visibility, and competitive pressure in modality). Management emphasizes disciplined cost control, structural initiatives to restore Healthcare performance, and cautious but positive guidance skewed to H2. Overall, the company reported measurable improvements and strategic shifts that outweigh near-term challenges, but some recovery (notably in U.S. Healthcare and visibility) is timing-dependent.Q4-2025 Updates
Positive Updates
Revenue Growth
Full-year sales of EUR 964 million, up 2% year-over-year reported and up 4% at constant currency.
Profitability and EBITDA
EBITDA of EUR 125 million, representing a 13% EBITDA margin. Management reports recurring EBITDA growth of approximately EUR 30 million after adjusting for one-offs, FX and tariffs.
Earnings Per Share and Capital Returns
Earnings per share increased to EUR 0.85, up 20% year-over-year. Company returned approximately EUR 120 million to shareholders (including a EUR 44 million dividend and completed share buybacks) and the Board proposes an increased dividend of EUR 0.55 per share and cancellation of ~6% of outstanding shares.
Entertainment Segment Outperformance
Entertainment sales grew ~11% with profit growth of 27%, driven by Cinema and Immersive Experience. Cinema capture rate >60%, >50 HDR systems installed in 2025 and >100 systems in the 2026 pipeline; total contract value of HDR-signed contracts ~EUR 89 million. Management highlights shift to recurring revenue model (Cinema as a Service) and lifetime value 8x–10x vs one-off projector sales.
Regional Strength in EMEA
EMEA region delivered double-digit growth, reported at approximately +11% for sales and orders, supporting group performance.
Operational Discipline and Cost Control
OpEx disciplined execution: operating expenses were ~4% below prior year; R&D normalized to ~12.6% following heavy 2024 product development; management cites automation and process optimisation as levers to protect margins.
Cash Generation and Balance Sheet Metrics
Free cash flow of EUR 57 million (6% of sales), net cash position EUR 186 million at year-end. Inventory levels flat year-over-year with inventory turns improving to ~2.2x; DSO 65 days.
Sustainability & Customer Metrics
Eco-labeled product revenues reached 67% (up 8% year-over-year) surpassing the company target. Employee engagement score 67 (up year-over-year) and Net Promoter Score of 60 (up ~6% year-over-year), with strong product quality and aftersales service feedback.
Negative Updates
Healthcare Performance Weakness
Healthcare EBITDA declined to EUR 26.5 million, down 22% year-over-year, representing a 10.1% margin. Underperformance driven by slower U.S. orders (delayed government spending), tariffs and FX impacts, and weaker surgical renewals in H2.
U.S. Market and Tariff/Currency Headwinds
Americas sales reported down ~3% (ex-currency). Management cites headwinds from tariffs and a weak dollar; company highlighted roughly EUR 7 million impact from tariffs and ~EUR 8 million impact from FX on prior-year comparatives and margins. Tariffs added notable cost pressure (projection shipments cited).
Order Visibility and Shorter Lead Times
Orders trended later in the cycle (order-to-sales conversion faster) and order intake at constant currency was below 2% year-over-year, reducing forward visibility. Normalization of supply chains and shorter lead times have made booking patterns more 'book-and-turn' and less preorder-driven.
Modality and Competitive Pressure in China
Modality business described as commoditizing with strong Chinese competition. Management is moving modality ownership to the Suzhou hub to cut costs and improve competitiveness, signaling margin pressure and structural repositioning needs.
Margin Variability and Cautious Guidance
Despite divisional strengths, the company reconfirmed conservative medium-term guidance (EUR 1.1 billion revenue and 15% EBITDA by 2028). Investors questioned why higher divisional margins do not translate to a more aggressive group-margin target; management cited Healthcare recovery timing and H1 FX exposure as reasons for caution.
Net Cash Reduction and Cash Uses
Net cash declined by ~EUR 73 million year-over-year to EUR 186 million, reflecting shareholder returns and ongoing cash deployment; management signaled priority use of cash for CapEx, factory upgrades and potential M&A, and paused further buybacks for now.
Working Capital and Contract Effects
Working capital increased slightly (~1%); contracts-in-progress related to Cinema as a Service (~EUR 10 million) affect working capital and free cash flow dynamics. Management intends to target working capital normalization (around 12%) but some investments and CaaS effects will persist.
Segment-Specific Near-Term Risk in Surgical
Surgical experienced strong H1 but weaker H2 due to expiring contracts and long design-in times for replacements, implying a timing-related revenue and margin headwind heading into 2026.
Company Guidance
Barco guided that, assuming no major macro deterioration, it expects both revenue and EBITDA to grow in FY2026 at constant currency, with growth skewed to the second half and some currency headwinds in H1; this follows FY2025 results of EUR 964m sales (+2% reported / +4% at constant currency), EBITDA of EUR 125m (13% margin), EPS EUR 0.85 (+20%), an order book of EUR 493m and free cash flow of EUR 57m (6% of sales). Management reconfirmed its Capital Markets Day targets for 2028 of EUR 1.1bn revenue, 15% EBITDA margin and 15% recurring revenue, proposed a dividend of EUR 0.55/share and cancellation of ~5.575m shares (~6% outstanding), noted it returned ~EUR 120m to shareholders in FY25 (EUR 44m dividend + buybacks of EUR 60m and EUR 30m), and reported year-end net cash of EUR 186m while emphasising a strategic shift from CapEx to OpEx and continued focus on software/recurring revenue to drive future margins.Barco Financial Statement Overview
Summary
Healthy underlying profitability and balance-sheet resilience (solid ~40% gross margin, improved net margin, and low leverage), but offset by the stated sharp 2025 revenue decline and a meaningful drop in free cash flow, raising questions about near-term earnings/cash durability.Income Statement
Profitability is solid and relatively consistent: gross margin held around ~40% in 2024–2025, and net margin improved to ~7.1% in 2025 (vs. ~6.7% in 2024), with operating profitability also ticking up. However, the top-line trajectory is the key concern—revenue fell ~27% in 2025 after declines in 2024, reversing the prior recovery and creating risk that earnings durability could weaken if volumes don’t stabilize.62
Positive
Balance Sheet
The balance sheet appears conservative with low leverage: debt is modest versus equity (debt-to-equity ~0.10 in 2025), providing flexibility through downcycles. That said, equity and total assets stepped down in 2025 versus 2024, and returns on equity were stronger in 2022–2024 than implied by the softer 2025 earnings base—suggesting some pressure on capital efficiency if the revenue decline persists.78
Positive
Cash Flow
Cash generation is positive, with operating cash flow and free cash flow remaining positive in 2025, and free cash flow covering a meaningful portion of earnings (about ~61% in 2025). The main weakness is volatility: free cash flow dropped sharply in 2025 (down ~44% year over year) after a stronger 2024, and the business has shown uneven cash conversion historically (including negative operating/free cash flow in 2020).56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 963.84M | 946.59M | 1.05B | 1.06B | 804.29M |
| Gross Profit | 386.05M | 385.43M | 438.52M | 412.75M | 287.49M |
| EBITDA | 130.16M | 118.36M | 135.45M | 126.75M | 52.80M |
| Net Income | 68.73M | 62.96M | 80.17M | 75.22M | 8.88M |
Balance Sheet | |||||
| Total Assets | 1.10B | 1.23B | 1.16B | 1.15B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 259.78M | 362.96M | 290.75M | 307.57M | 354.33M |
| Total Debt | 73.56M | 103.91M | 49.60M | 43.55M | 44.58M |
| Total Liabilities | 385.63M | 433.71M | 348.12M | 368.42M | 369.44M |
| Stockholders Equity | 714.84M | 795.15M | 795.33M | 759.19M | 693.78M |
Cash Flow | |||||
| Free Cash Flow | 60.86M | 100.58M | 39.97M | 6.58M | 80.87M |
| Operating Cash Flow | 99.31M | 143.14M | 94.38M | 27.80M | 99.65M |
| Investing Cash Flow | -34.84M | -28.73M | -51.38M | -57.47M | 37.64M |
| Financing Cash Flow | -148.31M | -46.34M | -53.45M | -24.73M | -35.50M |
Barco Technical Analysis
Negative
6.96
Price Trends
6.84
Negative
7.05
Negative
7.41
Negative
Market Momentum
-0.12
Positive
41.41
Neutral
44.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCNAY, the sentiment is Negative. The current price of 6.96 is above the 20-day moving average (MA) of 6.62, above the 50-day MA of 6.84, and below the 200-day MA of 7.41, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 41.41 is Neutral, neither overbought nor oversold. The STOCH value of 44.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BCNAY.
Barco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.93B | 50.57 | 15.66% | 0.16% | 23.70% | 14.78% | |
68 Neutral | $1.54B | 24.16 | 10.98% | 0.36% | 3.70% | 1.68% | |
66 Neutral | $2.13B | 87.04 | 3.37% | 1.44% | -2.93% | -40.33% | |
66 Neutral | $1.33B | 199.63 | 2.64% | ― | -6.13% | -76.92% | |
64 Neutral | $1.17B | 13.56 | 10.46% | 4.08% | 0.82% | 42.23% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.06B | 91,181.66 | 4.85% | ― | 10.76% | ― |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.