Belden (BDC) AI Stock Analysis

• Market Cap: $4.74B
• Dividend Yield: 0.17%
• Average Volume (3M): 249.11K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.42
• Revenue Growth: 13.42%
• EPS Growth: 31.28%
• Country: US
• Employees: 7,500
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.97
• Shares Outstanding: 39,300,210
• 10 Day Avg. Volume: 217,395
• 30 Day Avg. Volume: 249,113
• PEG Ratio: -1.53
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 20.55
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 14.39
• 1Y Price Target: $147.00
• Price Target Upside: 21.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 7.42
• Revenue Forecast (FY): $2.69B

• Rating: 66 Neutral
• Price Target: $118.00 ▼(-2.12% Downside)

Belden's overall score is driven by strong financial performance and positive earnings call highlights, particularly in the Automation Solutions segment. However, technical analysis indicates bearish momentum, and valuation metrics suggest limited dividend appeal. The company should focus on improving cash flow metrics and addressing margin pressures.

Positive Factors

Revenue Growth

Belden's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Strategic Wins

Winning strategic contracts in key sectors enhances Belden's competitive position and supports sustained revenue growth.

Market Position

Belden's ability to achieve organic growth reflects its strong market position and effective execution in meeting customer needs.

Negative Factors

Declining Free Cash Flow

A significant decline in free cash flow growth may limit Belden's ability to invest in growth opportunities and manage financial obligations.

Moderate Leverage

Moderate leverage could pose risks if not managed carefully, potentially impacting financial flexibility and stability.

Challenges in Broadband Segment

Technical challenges in the Broadband segment could hinder growth and operational efficiency, affecting overall performance.

Belden Business Overview & Revenue Model

Company Description

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 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 Money

Belden generates revenue primarily through the sale of its products and solutions in various sectors. The company has key revenue streams from its industrial solutions, which include cables and connectivity products used in manufacturing and automation systems, as well as from its enterprise solutions that cater to data centers and corporate networks. Additionally, Belden's broadcast solutions provide critical infrastructure for media and entertainment companies. The company benefits from strong partnerships with major players in different industries, enabling it to expand its market presence. Furthermore, Belden's focus on innovation and developing cutting-edge products helps to maintain its competitive edge, driving customer demand and sales growth.

Belden Financial Statement Overview

Summary

Belden demonstrates strong profitability and efficient operations, with a solid income statement and stable balance sheet. However, the decline in free cash flow growth is a concern, indicating potential cash flow risks.

Income Statement

Belden's income statement shows a strong gross profit margin of 56.72% in TTM, indicating efficient cost management. The net profit margin has improved to 8.57% from previous years, reflecting better profitability. Revenue growth is modest at 1.65% TTM, but it shows recovery from a decline in earlier periods. EBIT and EBITDA margins are stable, suggesting consistent operational performance.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.11 in TTM, indicating moderate leverage. Return on Equity (ROE) is healthy at 18.26%, showcasing effective use of equity. The equity ratio stands at 36.89%, suggesting a balanced capital structure. However, the company should monitor its debt levels to maintain financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 85.3% TTM, which is a concern. However, the operating cash flow to net income ratio is 0.58, indicating decent cash generation relative to net income. The free cash flow to net income ratio is 0.58, suggesting that the company is generating adequate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.66B	2.46B	2.51B	2.61B	2.30B	1.75B
Gross Profit	1.02B	922.22M	954.97M	916.29M	771.84M	575.62M
EBITDA	422.20M	381.99M	418.83M	449.69M	377.46M	258.41M
Net Income	228.02M	198.43M	242.76M	254.66M	63.92M	-55.16M
Balance Sheet
Total Assets	3.37B	3.33B	3.24B	3.16B	3.42B	3.14B
Cash, Cash Equivalents and Short-Term Investments	314.26M	370.30M	597.04M	687.68M	641.56M	501.99M
Total Debt	1.38B	1.25B	1.30B	1.24B	1.54B	1.63B
Total Liabilities	2.12B	2.03B	2.07B	2.02B	2.46B	2.38B
Stockholders Equity	1.24B	1.29B	1.17B	1.14B	955.29M	750.58M
Cash Flow
Free Cash Flow	213.82M	222.98M	202.91M	176.20M	181.07M	83.15M
Operating Cash Flow	369.19M	352.08M	319.64M	281.30M	272.06M	173.36M
Investing Cash Flow	-149.63M	-426.75M	-200.36M	168.41M	-92.00M	-31.64M
Financing Cash Flow	-229.28M	-143.72M	-211.93M	-393.21M	-32.93M	-74.91M

Belden Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.56
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDC, the sentiment is Positive. The current price of 120.56 is above the 20-day moving average (MA) of 113.81, above the 50-day MA of 115.91, and above the 200-day MA of 114.06, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 89.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BDC.

Belden Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	77 Outperform	$1.58B	39.60	6.71%	―	1.46%	78.77%
VIAV	68 Neutral	$3.92B	266.51	2.13%	―	15.60%	―
BDC	66 Neutral	$4.74B	21.33	18.41%	0.17%	13.42%	31.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMM	60 Neutral	$4.17B	―	―	―	9.86%	99.11%
EXTR	57 Neutral	$2.33B	274.80	17.08%	―	14.31%	―
PI	56 Neutral	$4.72B	―	-7.49%	―	4.24%	-141.83%

Belden Corporate Events

Belden’s Earnings Call: Record Revenue and Strategic Wins

Belden’s recent earnings call conveyed a generally positive sentiment, highlighting the company’s robust financial performance, particularly in the Automation Solutions segment, and strategic advancements in Physical AI. However, the call also addressed challenges in the Smart Infrastructure Solutions segment and the impact of fluctuating copper prices and tariffs on margins.

Belden Inc. Achieves Record Third Quarter Results

Belden Inc., a global leader in providing comprehensive connection solutions, operates primarily in the technology and industrial sectors, offering innovative products that enhance connectivity and efficiency.