Belden Inc reports 31.2% EBITDA decline in 2020 and 12.6% Revenue decline
02/10/2021 • About Belden Inc (
$BDC) • By InTwits
Belden Inc reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Belden Inc is a company in decline: 2020 revenue growth was -12.6%, 5 years revenue CAGR was -4.2%
- Belden Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: $57m in FY2020, $69m in FY2019, $68m in FY2018, $44m in FY2017, $26m in FY2016
- The company has potentially unprofitable business model: ROIC is 5.3%
- It operates with high leverage: Net Debt/EBITDA is 4.6x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Belden Inc's Revenue dropped on 12.6%. Annual revenue decline showed slowdown in 20Q4 - revenue decreased on 9.3%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 16.9% to 13.3% in 2020. During 2016-2020 EBITDA Margin topped in 2018 at 17.6% and was declining since that time.
Gross Margin decreased slightly on 1.6 pp from 37.2% to 35.6% in 2020. Gross Margin followed a declining trend at -1.4 pp per annum in the last 5 years. SG&A as a % of Revenue showed almost no change in 2020.
Net Income margin jumped on 14.7 pp from -17.7% to -3.0% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.8% in 2020. The company showed CAPEX/Revenue growth of 2.2 pp from 2.7% in 2017 to 4.8% in 2020. For the last three years the average CAPEX/Revenue was 4.6%. CAPEX as a % of Revenue followed a growing trend at 0.76 pp per annum in the last 5 years.
Return on investment
The company operates at low but positive ROIC (5.3%) and negative ROE (-6.5%). ROIC decreased on 2.6 pp from 7.9% to 5.3% in 2020. ROE surged on 27.2 pp from -33.7% to -6.5% in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.6x and Debt / EBITDA is 6.6x. Net Debt / EBITDA jumped on 1.5x from 3.1x to 4.6x in 2020. Debt increased on 8.3% while cash jumped on 23.2%.
Belden Inc has no short term refinancing risk: cash is higher than short term debt (3,405.2%).
Management team
The company's CEO is Roel Vestjens. Roel Vestjens has 10 months tenure with the company.
Financial and operational results
FY ended 12/31/2020
Belden Inc ($BDC) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2,357 | 2,389 | 2,585 | 2,131 | 1,863 | -12.6% |
| Gross Profit | 981 | 935 | 1,008 | 794 | 663 | -16.4% |
| SG&A | 494 | 461 | 526 | 417 | 366 | -12.3% |
| EBITDA | 369 | 385 | 454 | 361 | 248 | -31.2% |
| EBIT | 224 | 235 | 305 | | | |
| Tax | -1 | 6 | 60 | | | |
| Net Income | 128 | 93 | 161 | -377 | -55 | |
| Stock Based Compensation | 18 | 15 | 18 | | | |
Balance Sheet
|
|---|
| Cash | 848 | 561 | 421 | 407 | 502 | 23.2% |
| Accounts Receivable | 388 | 474 | 466 | | | |
| Inventory | 190 | 297 | 316 | | | |
| Accounts Payable | 258 | 376 | 353 | | | |
| Short Term Debt | 0 | 0 | 0 | 14 | 15 | 6.1% |
| Long Term Debt | 1,620 | 1,561 | 1,463 | 1,495 | 1,620 | 8.4% |
Cash flow
|
|---|
| Capex | 54 | 64 | 98 | 110 | 90 | -18.0% |
| Dividends | 16 | 43 | 43 | | | |
| Acquisitions | 19 | 167 | 85 | | | |
Ratios
|
|---|
| Revenue growth | 2.1% | 1.4% | 8.2% | -17.6% | -12.6% | |
| EBITDA growth | 27.0% | 4.2% | 17.9% | -20.4% | -31.2% | |
|
|---|
| Gross Margin | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% | -1.6% |
| EBITDA Margin | 15.7% | 16.1% | 17.6% | 16.9% | 13.3% | -3.6% |
| EBIT Margin | 9.5% | 9.9% | 11.8% | | |
| SG&A, % of revenue | 21.0% | 19.3% | 20.3% | 19.6% | 19.7% | 0.1% |
| SBC, % of revenue | 0.8% | 0.6% | 0.7% | | |
| Net Income Margin | 5.4% | 3.9% | 6.2% | -17.7% | -3.0% | 14.7% |
| CAPEX, % of revenue | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% | -0.3% |
|
|---|
| ROIC | 7.9% | 7.8% | 10.5% | 7.9% | 5.3% | -2.6% |
| ROE | 9.9% | 4.0% | 8.9% | -33.7% | -6.5% | 27.2% |
| Net Debt/EBITDA | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x | 1.5x |
People
|
|---|
| Insider ownership | 2.1% | 2.1% | 2.1% | | | |
| Employees | 8,400 | 8,800 | 9,000 | | | |
| Revenue/Employee, th. $ | 281 | 271 | 287 | | | |
Belden Inc ($BDC) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 464 | 425 | 476 | 499 | | -21.1% | -22.5% | -10.7% | -9.3% |
| EBITDA | 60 | 47 | 67 | 74 | | -30.4% | -51.4% | -30.8% | -0.5% |
| Net Income | -11 | -68 | 17 | 7 | | -144.4% | -260.9% | - | - |
Balance Sheet
|
|---|
| Cash | 251 | 360 | 391 | 502 | | -26.0% | 21.8% | 31.9% | 23.2% |
| Short Term Debt | 14 | 14 | 15 | 15 | | -24.0% | -25.4% | -13.7% | 6.1% |
| Long Term Debt | 1,438 | 1,587 | 1,550 | 1,620 | | -5.4% | 3.4% | 4.9% | 8.4% |
Ratios
|
|---|
| Gross Margin | 36.8% | 35.3% | 35.2% | 35.2% | | -1.5% | -2.1% | -2.1% | -1.7% |
| EBITDA Margin | 13.0% | 11.1% | 14.0% | 14.9% | | -1.7% | -6.6% | -4.1% | 1.3% |
| Net Income Margin | -2.4% | -16.0% | 3.6% | 1.4% | | -6.7% | -23.7% | 59.3% | 28.2% |
Peers in Electronic Components
Below we provide Belden Inc benchmarking against other companies in Electronic Components industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| |
|---|
| Median (12 companies) | -10.4% | 8.3% | 16.6% | -0.1% | -4.6% |
|---|
| Belden Inc ($BDC) | - | 1.4% | 8.2% | -17.6% | -12.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Knowles Corporation ($KN) | 38.2% | 38.5% | 39.0% | 38.4% | 35.5% |
| |
|---|
| Median (12 companies) | 33.7% | 34.9% | 36.3% | 35.5% | 33.3% |
|---|
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| |
|---|
| Median (12 companies) | 13.6% | 8.7% | 9.3% | 17.5% | 15.4% |
|---|
| Belden Inc ($BDC) | 15.7% | 16.1% | 17.6% | 16.9% | 13.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
| Knowles Corporation ($KN) | 4.5% | 6.9% | 9.7% | 4.8% | 4.2% |
| |
|---|
| Median (12 companies) | 3.4% | 5.1% | 4.1% | 4.5% | 3.6% |
|---|
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| |
|---|
| Median (12 companies) | 4.7% | 6.0% | 7.8% | 8.5% | 6.9% |
|---|
| Belden Inc ($BDC) | 7.9% | 7.8% | 10.5% | 7.9% | 5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| Littelfuse, Inc. ($LFUS) | 1.0x | 0.2x | 0.6x | 0.6x | 0.1x |
| |
|---|
| Median (11 companies) | -0.5x | -0.3x | 0.5x | 0.6x | 0.0x |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
