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JBT Marel (JBTM)
NYSE:JBTM
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JBT Marel
(NYSE:JBTM)
Rating:65Neutral
Price Target:―
Positive Factors
Acquisition Integration
JBT is highlighted as a top idea for 2025 due to improved demand and multi-year earnings growth opportunity from Marel acquisition integration.
Financial Performance
JBT Marel reported strong first-quarter results as both revenue and orders were above expectations.
Order Momentum
Order momentum continued in first quarter 2025 (+12% year-over-year), with record bookings at Marel led by poultry, implying year-over-year growth starting at 19% to roughly $510 million.
Negative Factors
Acquisition Dilution
Year one dilution from the acquisition of Marel is more adverse than originally feared, at an estimated $0.65 to $1.25.
Guidance Suspension
The decision to suspend full year 2025 guidance appears to stem from an abundance of caution, with JBT Marel calling out prolonged periods of macro uncertainty as historically poor for the more cyclical equipment piece of the business.
Order Deferrals
Management witnessed a handful of deferrals during the quarter, potentially impacting second-quarter orders.
JBT Marel (JBTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.89B
Dividend Yield0.35%
Average Volume (3M)536.36K
Price to Earnings (P/E)40.4
Beta (1Y)0.88
Revenue Growth30.24%
EPS Growth-107.38%
CountryUS
Employees11,700
SectorIndustrials
Sector Strength92
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.97
Shares Outstanding51,968,742
10 Day Avg. Volume452,208
30 Day Avg. Volume536,362
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.41
Price to Sales (P/S)0.00
P/FCF Ratio27.92
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit7.40
Enterprise Value/Ebitda6.85
Forecast
1Y Price Target
$129.00Price Target Upside13.84% Upside
Rating ConsensusHold
Number of Analyst Covering4
JBT Marel Business Overview & Revenue Model
Company DescriptionJBT Marel Corporation provides technology solutions to food and beverage industry in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers value-added processing that includes chilling, mixing/grinding, injecting, blending, marinating, tumbling, flattening, forming, portioning, coating, cooking, frying, freezing, extracting, pasteurizing, sterilizing, concentrating, high pressure processing, weighing, inspecting, filling, closing, sealing, end of line material handling, and packaging solutions to the food, beverage, and health market. In addition, it offers automated guided vehicle systems for material movement in the manufacturing, warehouse, and medical facilities. It serves baby food, bakery and confectionery, citrus processing, fruits and nuts, juices, non-food, pet food, pharmaceutical, plant- based beverages and protein, poultry, meat, and seafood, ready meals, oils, soups, sauces, seasoning and dressings, automotive, building material, tissue, paper, and packaging, hospitals, pharma and life sciences, fast moving consumer goods, manufacturing, warehousing, and other industries. The company markets and sells its products and solutions through direct sales force, independent distributors, sales representatives, and technical service teams. The company was formerly known as John Bean Technologies Corporation and changed its name to JBT Marel Corporation in January 2025. JBT Marel Corporation was incorporated in 1994 and is headquartered in Chicago, Illinois.
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
JBT Marel exhibits a stable financial foundation with strong cash generation capabilities and improved balance sheet strength. However, the recent net loss and declining profit margins highlight the need for operational efficiencies and cost control. The company should focus on reversing the net income trend to sustain long-term growth.Income Statement
The income statement shows a mixed performance. The revenue growth rate for TTM is strong compared to the previous annual period, but the company posted a negative net income. Gross profit margin remains healthy, yet the net profit margin is concerning due to the significant net loss in the TTM. EBIT and EBITDA margins have decreased, reflecting challenges in maintaining operational efficiency.65
Positive
Balance Sheet
The balance sheet is relatively robust with a high equity ratio, indicating strong capitalization. Debt levels have been reduced significantly, improving the debt-to-equity ratio favorably. However, the return on equity has been negatively impacted by the net loss, which may be a potential risk if profitability issues persist.72
Positive
Cash Flow
Cash flow metrics are solid, with a strong operating cash flow to net income ratio indicating effective cash generation from operations. Free cash flow has grown, showing good liquidity management. However, the substantial increase in financing cash flow suggests reliance on external funding, which could indicate potential liquidity concerns in the future if not managed well.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.18B | 1.72B | 1.66B | 2.17B | 1.87B | 1.73B | Gross Profit |
| 778.70M | 626.50M | 585.70M | 617.30M | 566.80M | 533.70M | EBIT |
| 55.90M | 118.40M | 164.70M | 168.40M | 160.10M | 163.10M | EBITDA |
| 114.90M | 204.20M | 268.70M | 208.50M | 242.90M | 235.60M | Net Income Common Stockholders |
| -110.40M | 85.40M | 582.60M | 137.40M | 119.10M | 108.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 101.00M | 1.23B | 483.30M | 73.10M | 78.80M | 47.50M | Total Assets |
| 8.00B | 3.41B | 2.71B | 2.58B | 2.14B | 1.81B | Total Debt |
| 21.40M | 1.25B | 646.40M | 977.90M | 674.40M | 524.90M | Net Debt |
| -79.60M | 23.70M | 163.10M | 904.80M | 595.60M | 477.40M | Total Liabilities |
| 3.89B | 1.87B | 1.22B | 1.72B | 1.39B | 1.17B | Stockholders Equity |
| 4.11B | 1.54B | 1.49B | 862.70M | 750.50M | 637.10M |
| Cash Flow | Free Cash Flow | ||||
| 209.20M | 194.70M | 19.10M | 54.70M | 171.60M | 217.70M | Operating Cash Flow |
| 256.60M | 232.60M | 74.20M | 142.30M | 225.70M | 252.00M | Investing Cash Flow |
| -1.80B | -41.30M | 729.30M | -416.10M | -272.90M | -37.30M | Financing Cash Flow |
| 1.19B | 561.80M | -354.10M | 270.60M | 80.80M | -207.40M |
JBT Marel Technical Analysis
Neutral
113.32
Price Trends
111.38
Positive
119.10
Negative
112.23
Positive
Market Momentum
2.27
Negative
52.62
Neutral
24.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBTM, the sentiment is Neutral. The current price of 113.32 is above the 20-day moving average (MA) of 111.73, above the 50-day MA of 111.38, and above the 200-day MA of 112.23, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 3 New Risks
1.
Our maintenance of two stock exchange listings may adversely affect liquidity in the market for our common stock and could result in pricing differentials of our common stock between the two stock exchanges. Q4, 2024
2.
Any dividend paid is subject to various factors, including our financial condition and results of operations. Q4, 2024
3.
We may not be able to timely and effectively implement controls and procedures over Marel's operations as required under the U.S. securities laws. Q4, 2024
JBT Marel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.00B | 34.63 | 15.24% | ― | 10.78% | 30.05% | |
79 Outperform | $7.92B | 27.17 | 17.61% | 0.72% | 3.89% | 8.17% | |
78 Outperform | $6.49B | 23.26 | 14.00% | 1.69% | 4.23% | 20.40% | |
69 Neutral | $3.85B | 26.85 | 17.68% | 1.07% | 10.96% | 43.44% | |
68 Neutral | $1.76B | 28.82 | 9.29% | 0.84% | 2.67% | -18.41% | |
65 Neutral | $5.89B | 40.40 | -3.97% | 0.35% | 30.24% | -107.38% | |
64 Neutral | $4.39B | 11.81 | 5.20% | 249.38% | 3.96% | -12.36% |
* Industrials Sector Average
Performance Comparison
JBTM
JBT Marel
113.32
20.12
21.59%
FLS
Flowserve
49.61
1.21
2.50%
MWA
Mueller Water Products
24.57
6.39
35.15%
SPXC
SPX
149.77
7.78
5.48%
SXI
Standex International
145.86
-18.15
-11.07%
WTS
Watts Water Technologies
237.29
35.88
17.81%
JBT Marel Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 5.75%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
JBT Marel's earnings call highlighted strong performance in revenue and order growth, successful integration efforts, and a solid liquidity position. However, the suspension of full-year guidance due to tariff uncertainties and challenges in specific market segments like whitefish present notable risks. Overall, while positive achievements were significant, the uncertainties and potential financial impacts of tariffs weigh on the outlook.Q1-2025 Updates
Positive Updates
Better-than-Expected Revenue and Margin Performance
JBT Marel's first quarter revenue exceeded the midpoint of guidance by $19 million, outperforming expectations due to strong equipment shipments and recurring revenue. Adjusted EBITDA margin was 13.1%, surpassing guidance by 60 basis points.
Strong Order Growth
Orders increased 12% year over year, with significant demand from the Poultry industry and robust orders in meat, beverage, pharma, and pet food sectors. Combined orders reached $916 million, reflecting healthy growth.
Progress on Integration and Synergy Realization
Significant progress in integrating JBT and Marel, with cost synergies on track to achieve in-year savings of $35 million to $40 million in 2025 and annual run-rate savings of $80 million to $90 million.
Strong Liquidity Position
The company has a liquidity of approximately $1.3 billion, providing significant financial flexibility, with a reduction in leverage to 3.8 times, improving from just below 4 times at transaction close.
Negative Updates
Impact of Tariffs and Economic Uncertainty
Temporary suspension of full-year financial guidance due to uncertainty from US tariffs and potential reciprocal tariffs. Estimated cost impact of $50 million to $60 million annually due to tariffs.
Challenges in Whitefish Market
Continued challenges in the whitefish market, with a 25% quota reduction in the Barents Sea for 2025, impacting demand and market conditions.
Potential Backlog Repricing
Discussions with customers about potential repricing of backlog orders due to tariff impacts, which may affect revenue and margin stability.
Company Guidance
During JBT Marel's Q1 2025 earnings call, the company reported strong performance, exceeding revenue and adjusted EBITDA guidance, with a 13.1% adjusted EBITDA margin surpassing expectations by 60 basis points. Orders increased by 12% year-over-year, driven by robust demand in the poultry, meat, beverage, pharma, and pet food sectors across various global regions. Despite macroeconomic uncertainties and US tariff impacts, JBT Marel suspended its full-year guidance, offering only Q2 projections, anticipating $885 million to $915 million in revenue and an adjusted EBITDA margin between 14.5% and 15.25%. The company estimated potential tariff costs of $50 million to $60 million annually but plans to mitigate these by over half through supplier negotiations, pricing adjustments, and manufacturing shifts. The integration of JBT and Marel is on track, with targeted annual run-rate synergy savings of $150 million expected by the end of 2027.JBT Marel Corporate Events
Executive/Board ChangesShareholder Meetings
JBT Marel Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 20, 2025
On May 15, 2025, JBT Marel Corporation held its Annual Meeting of Stockholders where three key proposals were voted on. The stockholders re-elected three directors, approved executive compensation on an advisory basis, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the 2025 fiscal year.
The most recent analyst rating on (JBTM) stock is a Sell with a $85.00 price target. To see the full list of analyst forecasts on JBT Marel stock, see the JBTM Stock Forecast page.
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.