Belden (BDC) AI Stock Analysis

• Market Cap: $4.09B
• Dividend Yield: 0.19%
• Average Volume (3M): 307.78K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.15
• Revenue Growth: -2.03%
• EPS Growth: -14.97%
• Country: US
• Employees: 7,500
• Sector: Technology
• Sector Strength: 66
• Industry: Communication Equipment
• EPS (TTM): 1.60
• Shares Outstanding: 39,496,864
• 10 Day Avg. Volume: 280,687
• 30 Day Avg. Volume: 307,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.98
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $129.25
• Price Target Upside: 20.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Belden displays strong financial performance and positive earnings call highlights, contributing to a solid overall score. Strong revenue and profit growth, along with efficient cost management, are significant strengths. However, the stock's relatively high valuation and overbought technical indicators present potential risks. Investors should monitor global market conditions and the company's reliance on debt.

Positive Factors

Onshoring Trend

The U.S. onshoring trend is accelerating, expanding the opportunity pipeline with increased customer planning activity.

Revenue Growth

Automation Solutions orders increased by 22%, driving strong revenue and EBITDA growth.

Tariff Impact Mitigation

Finished goods to the U.S. primarily enter through Mexico under USMCA exemptions, minimizing direct P&L impact from tariffs with limited China exposure.

Negative Factors

European Market Weakness

Weaknesses in Europe persist, further complicated by tariff uncertainties.

FX Headwinds

Confidence in achieving the $8 EPS target this year has been tempered by FX headwinds and a lower 1Q revenue base.

Investment Reluctance

Customers are increasingly reluctant to commit to major investments in the short term due to uncertainties.

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 Inc. generates revenue primarily through the sale of its signal transmission products and solutions. Its key revenue streams include industrial connectivity solutions, enterprise networking products, and broadcast solutions. The company leverages its global presence and expertise to cater to diverse industries, offering a broad portfolio of high-quality products. Significant factors contributing to its earnings include its focus on innovation, strategic acquisitions, and long-term partnerships with leading companies in its target markets.

Belden Financial Statement Overview

Summary

Belden demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The company maintains a balanced leverage profile, though reliance on debt should be monitored. Its effective operational execution and healthy financial metrics position it well in the communication equipment industry.

Income Statement

Belden's income statement reflects strong profitability and growth. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is 37.5%, and the Net Profit Margin is 8.4%, indicating effective cost management and profitability. Revenue growth is positive at 3.6% compared to the previous annual report, demonstrating steady growth. The EBIT Margin is 11.4% and EBITDA Margin is 14.6%, both showing robust operational efficiency. Overall, the income statement presents a healthy financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet shows a stable financial position. The Debt-to-Equity Ratio is 1.04, indicating a balanced leverage level. Return on Equity (ROE) is 17.4%, reflecting good returns for shareholders. The Equity Ratio is 38.1%, suggesting adequate equity financing. While the company maintains a healthy equity base, it relies moderately on debt, which could pose risks if not managed carefully.

Cash Flow

The cash flow statement highlights solid cash generation capabilities. The Free Cash Flow Growth Rate is slightly negative at -1.5%, but the Operating Cash Flow to Net Income Ratio is 1.67, indicating strong cash conversion. The Free Cash Flow to Net Income Ratio is 1.03, demonstrating effective cash flow management. While there is a slight decline in free cash flow, overall cash flow metrics show strong liquidity and efficient cash operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.46B	2.51B	2.61B	2.41B	1.86B
	Gross Profit
922.22M	954.97M	916.29M	854.36M	663.29M
	EBIT
266.46M	317.52M	363.33M	296.53M	125.41M
	EBITDA
381.99M	418.83M	449.38M	365.58M	233.73M
	Net Income Common Stockholders
198.43M	242.76M	254.66M	63.92M	54.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
370.30M	597.04M	687.68M	643.76M	501.99M
	Total Assets
3.33B	3.24B	3.16B	3.42B	3.14B
	Total Debt
1.25B	1.30B	1.24B	1.53B	1.62B
	Net Debt
880.93M	701.05M	549.58M	883.46M	1.12B
	Total Liabilities
2.03B	2.07B	2.02B	2.46B	2.38B
	Stockholders Equity
1.29B	1.17B	1.14B	955.29M	750.58M
Cash Flow		Free Cash Flow
222.98M	202.91M	176.20M	177.42M	83.15M
	Operating Cash Flow
352.08M	319.64M	281.30M	272.06M	173.36M
	Investing Cash Flow
-426.75M	-200.36M	168.41M	-92.00M	-31.64M
	Financing Cash Flow
-143.72M	-211.93M	-393.21M	-32.93M	-74.91M

Belden Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 107.27 is above the 20-day moving average (MA) of 99.25, above the 50-day MA of 100.68, and below the 200-day MA of 109.70, indicating a neutral trend. The MACD of 1.67 indicates Negative momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 81.42 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
BDC	76 Outperform	$4.09B	21.76	16.13%	0.19%	-2.03%	-14.97%
DGII	75 Outperform	$1.03B	29.20	7.30%	―	-4.47%	195.28%
PI	63 Neutral	$2.80B	58.72	-0.78%	―	21.80%	89.21%
EXTR	61 Neutral	$1.89B	―	-78.83%	―	-11.00%	-792.47%
VIAV	60 Neutral	$2.01B	428.10	0.71%	―	3.34%	―
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%
LITE	59 Neutral	$4.46B	―	-42.79%	―	3.58%	-22.74%