Barnes Group Stock Intrinsic Value – Barnes Group Acquires MB Aerospace in $740M Deal
June 12, 2023
🌥️Trending News
Barnes Group ($NYSE:B) Inc., a global industrial and aerospace manufacturer and service provider, has recently announced its acquisition of MB Aerospace Holdings Limited for an estimated sum of $740 million. This deal marks the company’s latest effort to further expand its reach in the aerospace sector. They strive to provide high-quality products and cost-effective solutions in both the manufacturing and aftermarket services industry. The company is based in Bristol, Connecticut and trades on the NYSE under the symbol B. The acquisition of MB Aerospace will add to Barnes Group’s portfolio of leading aerospace and aerospace-related businesses. MB Aerospace is a leading engineering services provider with an extensive portfolio of complex machining and fabrication capabilities.
This addition will help Barnes Group to grow their capabilities globally and strengthen their position in the aerospace industry. The acquisition of MB Aerospace is a strategic move by Barnes Group to gain a larger presence in the aerospace sector and should prove beneficial to both companies. This move will give Barnes Group access to a larger engineering services base and provide MB Aerospace with additional resources to help them expand their capabilities.
Stock Price
On Monday, the BARNES GROUP announced that it had acquired MB Aerospace in a $740 million deal. The news sent BARNES GROUP’s stock down 1.6%, with the stock opening at $41.7 and closing at $41.0. The acquisition is expected to increase the company’s presence in the global aerospace industry.
It is also likely to enhance the company’s growth potential and expand its revenue stream. BARNES GROUP is now well-positioned to benefit from the increased demand for aerospace components and services. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Barnes Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.28k | 6.15 | 3.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Barnes Group. More…
| Operations | Investing | Financing |
| 117.09 | -38.83 | -75.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Barnes Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.44k | 1.06k | 27.28 |
Key Ratios Snapshot
Some of the financial key ratios for Barnes Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.8% | -20.6% | 3.5% |
| FCF Margin | ROE | ROA |
| 6.1% | 2.1% | 1.2% |
Analysis – Barnes Group Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of the financials of BARNES GROUP. After carefully evaluating the company’s assets and liabilities, our proprietary Valuation Line concluded that the intrinsic value of a BARNES GROUP share is approximately $41.3. As of now, the stock is trading at a price of $41.0, which we believe is a fair price for investors. More…
Peers
Since its inception in 1857, Barnes Group Inc has been engaged in a cutthroat competition with Cummins Inc, Schumag AG, and Harmonic Drive Systems Inc. All four companies have been vying for the top spot in the market share.
However, Barnes Group Inc has been able to hold its own against its competitors and has even managed to increase its market share in recent years.
– Cummins Inc ($NYSE:CMI)
Cummins Inc is a global power leader that designs, manufactures, sells, and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets, and related components and technology. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 55,600 people committed to powering a more prosperous world through three principal business segments: Engine, Electrical, and Components.
– Schumag AG ($LTS:0NIY)
Schumag AG is a publicly traded company with a market capitalization of 8.72 million as of 2022. The company has a return on equity of 1981.48%. Schumag AG is a leading provider of engineering and manufacturing solutions. The company provides a broad range of services, including design, development, and manufacturing of products and systems for the automotive, aerospace, and other industries. Schumag AG has a long history of innovation and is a trusted partner for many of the world’s leading companies.
– Harmonic Drive Systems Inc ($TSE:6324)
Harmonic Drive Systems Inc, headquartered in Tokyo, Japan, is a manufacturer of motion control products. The company’s products are used in a variety of industries, including aerospace, automotive, medical, and semiconductor. Harmonic Drive Systems Inc has a market cap of 458.21B as of 2022 and a Return on Equity of 5.85%. The company’s products are used in a variety of industries, including aerospace, automotive, medical, and semiconductor.
Summary
Barnes Group Inc. has recently purchased MB Aerospace for a total of $740 million, a move which will help the Connecticut-based industrial group diversify its offerings and continue to grow market share in the aerospace industry. With this acquisition, Barnes Group can now offer its customers access to MB Aerospace’s specialty products and services, including expanded engineering capabilities and an increased customer base. The deal also allows Barnes Group to further strengthen its global network of production plants, giving it a greater presence in the UK and the US. Overall, this transaction is a sound investment for Barnes Group which is expected to reap significant benefits in the long run.
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