Ready to invest in John Bean now and short it before the next earnings call?

JBT Stock  USD 106.13  1.37  1.31%   
As many baby boomers are still indifferent towards machinery space, it makes sense to review John Bean Technologies. We will try to explain if it is still possible for John Bean to generate above-average margins. Is John Bean Technologies valuation justified? I am going to cover the entity perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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Reviewed by Rifka Kats

This firm has 674.4 M in debt with debt to equity (D/E) ratio of 1.22, which is OK given its current industry classification.
Macroaxis provides investment recommendation on John Bean to complement and cross-verify current analyst consensus on John Bean Technologies. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of John Bean Technologies using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of John Bean Technologies based exclusively on its fundamental and basic technical indicators. By analyzing John Bean's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of John Bean's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of John Bean. We calculate exposure to John Bean's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to John Bean's related companies.

John Bean Technologies Investment Alerts

John Bean investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring John Bean Technologies performance across your portfolios.Please check all investment alerts for John Bean

John Bean Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare John Bean value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across John Bean competition to find correlations between indicators driving the intrinsic value of John Bean.

How does John Bean utilize its cash?

To perform a cash flow analysis of John Bean, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash John Bean is receiving and how much cash it distributes out in a given period. The John Bean cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
John Bean Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. John Bean reported Net Cash Flow from Operations of 142.3 Million in 2022

Breaking down John Bean Further

The newest bullish price patterns experienced by current John Bean shareholders may raise some interest from private investors. The stock closed today at a share price of 106.25 on 380,088 in trading volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in January. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.33. The current volatility is consistent with the ongoing market swings in January 2023 as well as with John Bean Technologies unsystematic, company-specific events.

Margins Breakdown

John Bean profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or John Bean itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of John Bean profit margins.
Profit Margin
Operating Margin
Operating Margin7.23
EBITDA Margin8.96
Gross Margin26.05
Profit Margin5.03

John Bean Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. John Bean Average Assets is increasing over the last 8 years. The previous year's value of John Bean Average Assets was 1,871,145,395. Additionally, John Bean Net Income Per Employee is comparatively stable at the moment. John Bean Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. John Bean Average Assets is increasing over the last 8 years. Additionally, John Bean Net Income Per Employee is comparatively stable at the moment.

Will John Bean continue to go mental?

Downside deviation is down to 2.18. It may call for a possible volatility drop.
As of the 21st of February, John Bean retains the Downside Deviation of 2.18, risk adjusted performance of 0.1427, and Market Risk Adjusted Performance of 0.1818. John Bean technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We have analyzed nineteen technical drivers for John Bean Technologies, which can be compared to its competitors. Please check out John Bean Technologies information ratio, as well as the relationship between the potential upside and kurtosis to decide if John Bean is priced fairly, providing market reflects its last-minute price of 106.25 per share. Given that John Bean Technologies has jensen alpha of 0.3129, we strongly advise you to confirm John Bean Technologies's regular market performance to make sure the company can sustain itself at a future point.

Our Final Take On John Bean

Whereas some firms within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, John Bean may offer a potential longer-term growth to private investors. On the whole, as of the 21st of February 2023, our primary 90 days advice on the firm is Strong Buy. However, we believe John Bean is overvalued with below average odds of financial distress for the next two years.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of John Bean Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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