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Barco NV (BCNAY)
OTHER OTC:BCNAY
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Barco
(OTC:BCNAY)
Select Model
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Rating:63Neutral
Price Target:
$7.50
▲(6.08% Upside)
Barco's financial stability and attractive dividend yield are significant strengths, supporting a moderate overall score. However, bearish technical indicators and revenue growth challenges weigh on the stock's outlook.
Positive Factors
Cash Generation Ability
Strong cash generation enhances Barco's ability to invest in growth opportunities, pay dividends, and reduce debt, supporting long-term stability.
Balance Sheet Health
A robust balance sheet with low leverage provides Barco with financial flexibility to navigate economic cycles and invest in strategic initiatives.
Operational Efficiency
Maintaining a stable EBITDA margin despite revenue challenges reflects Barco's efficient cost management and operational resilience.
Negative Factors
Revenue Growth Challenges
Declining revenue can limit Barco's ability to expand market share and invest in new technologies, potentially impacting long-term growth prospects.
Volatility in Cash Flow
Volatile cash flows can hinder Barco's capacity to consistently fund operations and strategic initiatives, affecting financial predictability.
Revenue Growth
Persistent revenue decline may indicate challenges in market demand or competitive pressures, affecting Barco's ability to achieve sustainable growth.
Barco (BCNAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend Yield4%
Average Volume (3M)0.00
Price to Earnings (P/E)14.7
Beta (1Y)0.45
Revenue Growth0.82%
EPS Growth42.23%
CountryUS
Employees2,944
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.16
Shares Outstanding185,833,280
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)0.44
Price to Sales (P/S)0.37
P/FCF Ratio3.44
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit2.64
Enterprise Value/Ebitda7.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Barco Business Overview & Revenue Model
Company DescriptionBarco (BCNAY) is a global technology company specializing in visualization and collaboration solutions across various sectors, including healthcare, entertainment, and enterprise. The company is known for its innovative products such as projection systems, display solutions, and collaborative software that enhance visual experiences and improve communication in professional environments.
How the Company Makes MoneyBarco generates revenue primarily through the sale of its advanced visualization products and software solutions. Key revenue streams include sales from projectors and displays for cinema and commercial applications, medical imaging systems for healthcare facilities, and collaborative software tools for enterprises. The company also benefits from recurring revenues through service contracts, maintenance agreements, and software subscriptions. Strategic partnerships with industry leaders and a strong presence in high-growth markets further contribute to its earnings, enabling Barco to stay competitive and expand its customer base.
Barco Earnings Call Summary
Earnings Call Date:Feb 08, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
While Barco reported stable topline revenue and significant improvement in profitability, challenges persist in the healthcare and enterprise segments, as well as in the APAC region, particularly China. The company is cautious about macroeconomic uncertainties and aims for further improvements in 2024.Q4-2023 Updates
Positive Updates
Stable Topline with Profitability Improvement
Annual sales remained at EUR 1,050 million, similar to last year, with a notable EBITDA margin increase to 13.6%, 1.6 percentage points higher than the previous year.
Entertainment Segment Growth
Entertainment segment achieved a 15% sales growth, benefiting from the transition from lamp to laser projectors and easing supply chain issues.
Increased Revenue from Ecolabeled Products
Revenue from ecolabeled products rose to 65% of total sales, up from 50% the previous year.
Net Income and Free Cash Flow Improvement
Net income increased by EUR 5 million to EUR 80 million, and free cash flow improved to EUR 38 million.
Focus on Sustainability
Significant progress in reducing carbon emissions, with a more than 50% footprint reduction compared to 2015.
Negative Updates
Decline in Healthcare Sales
Healthcare sales declined by 16% due to high customer inventories and challenges in the Chinese market.
Enterprise Segment Challenges
Negative sales growth of 4% in the Enterprise segment, impacted by high inventory levels and challenging market conditions.
APAC Region Performance
APAC sales decreased by 4%, attributed to challenges in the Chinese market, affecting the overall regional performance.
High Working Capital
Working capital remained high at 16.6% of sales, with a targeted reduction to 12%.
Uncertain Macroeconomic Outlook
The company expressed caution about the uncertain macroeconomic conditions and inventory normalization expected in 2024.
Company Guidance
In the earnings call for Q4 2023, Barco provided guidance for the upcoming year, indicating expectations for the top line to remain consistent with 2023, with an anticipated gradual increase in sales starting from Q2 2024. Key financial metrics revealed included a top line of EUR 1,050 million, an EBITDA margin improvement to 13.6%, and a net income of EUR 80 million. The company highlighted a focus on new product launches and continued investment in core initiatives, with an aim for the EBITDA margin to exceed 14% in 2024. Barco's net cash was reported at EUR 241 million, and the board proposed a dividend of EUR 0.48 per share. The guidance underscored cautious optimism amidst uncertain market conditions, with expectations for inventory normalization and strategic expansion in software and services, notably cinema-as-a-service, which now accounts for 25% of the cinema division’s revenue.Barco Financial Statement Overview
Summary
Barco demonstrates financial stability with consistent profitability and strong equity. While revenue has declined, efficient operational management and solid cash flow generation provide resilience. The balance sheet reflects a healthy structure with minimal leverage risk. Overall, Barco is well-positioned financially, though revenue growth challenges remain.Income Statement
Barco's revenue has decreased recently, but the company maintains a stable gross profit margin. Net income has been positive, showing profitability despite the revenue drop. The company has managed to sustain its EBITDA margin, indicating operational efficiency.71
Positive
Balance Sheet
Barco has a solid equity position with a modest debt-to-equity ratio, indicating manageable leverage. The return on equity has been positive and stable, suggesting efficient use of equity capital. The equity ratio is strong, reflecting a robust financial structure.77
Positive
Cash Flow
Barco shows a significant increase in free cash flow, which is a positive indicator of financial health. The operating cash flow to net income ratio demonstrates strong cash generation relative to profits. However, past fluctuations in operating cash flow suggest potential volatility.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 966.48M | 946.59M | 1.05B | 1.06B | 804.29M | 770.08M |
| Gross Profit | 394.32M | 385.43M | 438.52M | 412.75M | 287.49M | 283.78M |
| EBITDA | 131.19M | 118.36M | 135.45M | 126.75M | 52.80M | 40.90M |
| Net Income | 77.26M | 62.96M | 80.17M | 75.22M | 8.88M | -4.39M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.23B | 1.16B | 1.15B | 1.10B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 271.74M | 362.96M | 290.75M | 307.57M | 354.33M | 238.58M |
| Total Debt | 35.13M | 103.91M | 49.60M | 43.55M | 44.58M | 45.13M |
| Total Liabilities | 391.49M | 433.71M | 348.12M | 368.42M | 369.44M | 321.10M |
| Stockholders Equity | 696.41M | 795.15M | 795.33M | 759.19M | 693.78M | 659.31M |
Cash Flow | ||||||
| Free Cash Flow | 108.07M | 100.58M | 39.97M | 6.58M | 80.87M | -33.43M |
| Operating Cash Flow | 145.51M | 143.14M | 94.38M | 27.80M | 99.65M | -18.45M |
| Investing Cash Flow | -21.91M | -28.73M | -51.38M | -57.47M | 37.64M | -45.96M |
| Financing Cash Flow | -81.40M | -46.34M | -53.45M | -24.73M | -35.50M | -39.63M |
Barco Technical Analysis
Neutral
7.07
Price Trends
7.39
Negative
7.74
Negative
7.28
Negative
Market Momentum
-0.10
Negative
46.70
Neutral
68.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BCNAY, the sentiment is Neutral. The current price of 7.07 is above the 20-day moving average (MA) of 7.05, below the 50-day MA of 7.39, and below the 200-day MA of 7.28, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 68.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BCNAY.
Barco Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.99B | 31.78 | 16.40% | 0.18% | 23.70% | 14.78% | |
69 Neutral | $1.54B | 41.01 | 3.37% | 1.46% | -2.93% | -40.33% | |
68 Neutral | $1.27B | 22.19 | 10.98% | 0.39% | 3.70% | 1.68% | |
64 Neutral | $895.38M | 4,193.18 | 4.36% | ― | -7.67% | 7.66% | |
63 Neutral | $1.25B | 14.67 | 10.46% | 4.00% | 0.82% | 42.23% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $1.10B | 75,000.00 | 6.17% | ― | 16.91% | ― |
* 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.