JBT Marel (JBTM) AI Stock Analysis

246 Followers

Top Page

JBT Marel

(NYSE:JBTM)

66Neutral

JBT Marel's strong financial position and positive earnings call guidance are significant positives, indicating potential for future growth. However, technical indicators suggest a bearish trend, and the high P/E ratio raises valuation concerns. Macroeconomic challenges and segment-specific performance issues add to the risk profile.

Positive Factors

Acquisition Progress

Over 90% of Marel shares have been validly tendered in JBT’s offer to acquire Marel, signaling a successful acquisition process.

Cost Synergies

Management has increased confidence in cost synergies after deal close, which supports future financial performance.

Market Reception

The company reported mixed fourth-quarter results but saw a 15% increase in share price, indicating positive market reception.

Negative Factors

Acquisition Impact

Year one dilution from the acquisition of Marel is more adverse than originally feared, at an estimated $0.65 to $1.25.

Revenue Performance

Standalone JBT fourth-quarter revenues totaled $467.6 million, below the consensus estimate of $489.1 million.

Sales Synergy

The 2025 benefit from sales synergy targets is expected to be negligible due to alignment of digital platforms being likely a 2026 event.

JBT Marel (JBTM) vs. S&P 500 (SPY)

Market Cap

$4.98B

Dividend Yield0.42%

Average Volume (3M)592.26K

Price to Earnings (P/E)36.2

Beta (1Y)0.80

Revenue Growth-4.48%

EPS Growth-85.89%

CountryUS

Employees12,200

SectorIndustrials

Sector Strength69

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)2.65

Shares Outstanding51,965,360

10 Day Avg. Volume777,278

30 Day Avg. Volume592,263

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.75

Price to Cash Flow (P/CF)12.50

P/FCF Ratio12.70

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$153.00

Price Target Upside59.51% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

JBT Marel Business Overview & Revenue Model

Company DescriptionJBT Marel (JBTM) is a leading global technology solutions provider specializing in the food processing industry. The company offers a comprehensive range of equipment, systems, and services for the poultry, meat, fish, and prepared foods sectors. JBT Marel's innovative solutions focus on enhancing production efficiency, food safety, and sustainability, catering to a diverse clientele across the food processing value chain.

How the Company Makes MoneyJBT Marel makes money through the sale of its advanced food processing equipment and systems, which are designed to improve operational efficiency and product quality for its customers. The company generates revenue from both the initial sale of its machinery and ongoing service contracts, including maintenance and support services. JBT Marel also engages in aftermarket sales, providing spare parts and upgrades to its installed equipment base. Strategic partnerships with key players in the food processing industry and continual investment in research and development further bolster its revenue streams by enabling the company to offer cutting-edge solutions and capture new market opportunities.

JBT Marel Financial Statement Overview

Summary

JBTM demonstrates balanced financial health with strong profitability and a stable capital structure. Income statement shows a stable gross profit margin and improved efficiency. However, revenue growth is sluggish. Balance sheet is robust with good leverage management and strong ROE. Cash flow is moderate with room for improvement in cash generation relative to net income.

Income Statement

Positive

The income statement reflects a stable gross profit margin of approximately 36% in TTM, with a net profit margin of around 10%, showing improved efficiency over the previous year. However, revenue growth has been sluggish in the TTM, with only a 2% increase. The EBIT and EBITDA margins are healthy at 9.67% and 16.54% respectively, indicating sound operational performance.

Balance Sheet

Positive

The balance sheet is robust with a debt-to-equity ratio of 0.41, indicating good leverage management. ROE is strong at 10.94% in TTM, reflecting effective utilization of shareholder equity. The equity ratio stands at 56.83%, showcasing a solid capital structure with a substantial equity base.

Cash Flow

Positive

Cash flow analysis reveals moderate performance with an operating cash flow to net income ratio of 0.43 in TTM. Free cash flow has grown substantially compared to the previous period, but the free cash flow to net income ratio is relatively low at 0.22, suggesting room for improvement in cash generation relative to net income.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
1.70B	1.66B	2.17B	1.87B	1.73B	1.95B
	Gross Profit
612.10M	585.70M	617.30M	566.80M	533.70M	598.10M
	EBIT
164.20M	164.70M	168.40M	160.10M	163.10M	188.20M
	EBITDA
280.70M	268.70M	208.50M	242.90M	235.60M	264.80M
	Net Income Common Stockholders
173.50M	582.60M	137.40M	119.10M	108.80M	129.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.00M	483.30M	73.10M	78.80M	47.50M	39.50M
	Total Assets
1.44B	2.71B	2.58B	2.14B	1.81B	1.91B
	Total Debt
387.60M	646.40M	977.90M	674.40M	524.90M	699.20M
	Net Debt
344.60M	163.10M	904.80M	595.60M	477.40M	659.70M
	Total Liabilities
985.60M	1.22B	1.72B	1.39B	1.17B	1.35B
	Stockholders Equity
456.90M	1.49B	862.70M	750.50M	637.10M	569.50M
Cash Flow		Free Cash Flow
38.50M	19.10M	54.70M	171.60M	217.70M	72.30M
	Operating Cash Flow
75.30M	74.20M	142.30M	225.70M	252.00M	110.20M
	Investing Cash Flow
84.80M	729.30M	-416.10M	-272.90M	-37.30M	-401.70M
	Financing Cash Flow
-21.60M	-354.10M	270.60M	80.80M	-207.40M	287.50M

JBT Marel Technical Analysis

Technical Analysis Sentiment

Negative

Last Price95.92

Price Trends

50DMA

123.09

Negative

100DMA

123.83

Negative

200DMA

110.52

Negative

Market Momentum

MACD

-7.70

Positive

RSI

28.17

Positive

STOCH

22.40

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBTM, the sentiment is Negative. The current price of 95.92 is below the 20-day moving average (MA) of 116.88, below the 50-day MA of 123.09, and below the 200-day MA of 110.52, indicating a bearish trend. The MACD of -7.70 indicates Positive momentum. The RSI at 28.17 is Positive, neither overbought nor oversold. The STOCH value of 22.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JBTM.

JBT Marel Risk Analysis

JBT Marel disclosed 58 risk factors in its most recent earnings report. JBT Marel 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

JBT Marel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWA	79 Outperform	$3.84B	28.12	17.49%	1.07%	11.94%	77.46%
WTS	77 Outperform	$6.47B	22.28	18.08%	0.89%	9.53%	10.98%
FLS	75 Outperform	$5.57B	19.79	14.34%	1.99%	5.49%	51.02%
SPXC	71 Outperform	$6.18B	30.84	15.65%	―	13.94%	37.49%
SXI	68 Neutral	$1.70B	31.17	8.57%	0.87%	-2.46%	-60.60%
JBTM	66 Neutral	$4.98B	36.17	5.58%	0.42%	-4.48%	-85.89%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%

* Industrials Sector Average

Performance Comparison

JBTM

JBT Marel

95.92

3.21

3.46%

FLS

Flowserve

42.28

-3.38

-7.40%

MWA

Mueller Water Products

24.53

9.56

63.86%

SPXC

SPX

132.06

12.88

10.81%

SXI

Standex International

142.78

-26.81

-15.81%

WTS

Watts Water Technologies

193.71

-4.27

-2.16%

JBT Marel Earnings Call Summary

Earnings Call Date: Feb 24, 2025 | % Change Since: -18.12% | Next Earnings Date: May 6, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong order growth and successful integration efforts of JBT and Marel, with increased synergy expectations and strong performance across key markets. However, macroeconomic challenges and weaker performance in certain segments like the beverage market present some concerns.

Highlights

Record Orders and Strong Revenue Growth

JBT reported record orders of $523 million in Q4, and Marel reported record orders of €474 million, totaling over $1 billion combined. JBT's full-year revenue increased 3%, with adjusted EBITDA up 8%.

Successful Integration of JBT and Marel

The integration of JBT and Marel is progressing well, with significant progress in organizational design and a promising customer-centric go-to-market strategy.

Increased Cost Synergy Expectations

The company raised its cost synergy guidance to $150 million in annual run-rate savings by the end of year three, up from $125 million, mainly due to supply chain savings.

Strong Performance in Poultry and Other Markets

The poultry industry showed strong fundamentals, with incremental investment expected in 2025. Other markets like meat, fish, fruit and vegetable, and pharmaceuticals also performed well, with strong order demand continuing into 2025.

Lowlights

Macro Concerns and Tariff Challenges

The company faces macroeconomic concerns, including potential U.S. tariffs and retaliatory measures, and higher inflation, which could impact future performance.

Lower Performance in Beverage Market

The beverage market was weaker through most of 2024 due to challenging industry fundamentals, though there was some improvement at year-end.

Delayed Equipment Shipments

JBT's results came in at the lower end of guidance due to delayed equipment shipments and higher than expected employee healthcare costs.

Company Guidance

In the recent earnings call for JBT Marel, the company provided guidance for 2025, highlighting several key metrics. They expect full-year revenue growth on a constant currency basis to be between 4.5% and 6.5%, excluding a projected negative foreign exchange impact of approximately $75 million. For 2025, the adjusted EBITDA margin is forecasted to range from 15.75% to 16.5%, representing an improvement of over 200 basis points. The company also anticipates realizing cost synergies of $35 million to $40 million in 2025, with run-rate synergies of $80 million to $90 million by year-end. The projected adjusted EPS for the year is between $5.50 and $6.10. For the first quarter of 2025, JBT Marel expects revenue of $820 million to $850 million, adjusted EBITDA margins of 12% to 13%, and adjusted EPS in the range of $0.70 to $0.90. Capital expenditures for the year are projected to be between $90 million and $100 million, with an expected leverage ratio below 3x by the end of 2025.

JBT Marel Corporate Events

Delistings and Listing ChangesM&A TransactionsBusiness Operations and Strategy

JBT Marel Completes Strategic Merger and Consolidation

Positive

Jan 7, 2025

JBT Marel Corporation completed the settlement of its voluntary takeover of Marel hf., with the combined entity commencing trading under the ticker symbol ‘JBTM’ on the NYSE and Nasdaq Iceland. The company has initiated a compulsory acquisition of remaining Marel shares to consolidate ownership, with the delisting of Marel from Euronext Amsterdam and Nasdaq Iceland approved. This strategic merger aims to enhance JBT Marel’s industry positioning by integrating complementary strengths, which is expected to deliver significant value to customers and shareholders, with a focus on the future of food.

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.