John Bean Technologies Corporation (JBT) Bundle
Understanding John Bean Technologies Corporation (JBT) Revenue Streams
Understanding John Bean Technologies Corporation’s Revenue Streams
Total revenue for the three months ended September 30, 2024, was $453.8 million, reflecting an increase of $50.2 million or 12.4% compared to the same period in 2023. Organic revenue contributed $49.9 million to this increase, while foreign currency translation had a favorable impact of $0.3 million.
For the nine months ended September 30, 2024, total revenue reached $1,248.4 million, which is $28.6 million or 2.3% higher than the same period in 2023. Organic revenue increased by $32.4 million, while foreign currency translation had an unfavorable effect of $3.8 million.
Breakdown of Primary Revenue Sources
| Type of Revenue | Q3 2024 ($M) | Q3 2023 ($M) | 9M 2024 ($M) | 9M 2023 ($M) |
|---|---|---|---|---|
| Recurring Revenue | 213.1 | 202.7 | 613.7 | 639.1 |
| Non-Recurring Revenue | 240.7 | 200.9 | 634.7 | 580.7 |
| Total Revenue | 453.8 | 403.6 | 1,248.4 | 1,219.8 |
Year-over-Year Revenue Growth Rate
- Q3 2024 revenue increased by 12.4% compared to Q3 2023.
- 9M 2024 revenue increased by 2.3% compared to 9M 2023.
Contribution of Different Business Segments to Overall Revenue
For the three months ended September 30, 2024, revenue from North America was $261.9 million, Europe, Middle East and Africa contributed $122.7 million, Asia Pacific contributed $46.1 million, and Central and South America provided $23.1 million.
The revenue contributions from geographical regions for the nine months ended September 30, 2024 were as follows:
| Region | 9M 2024 Revenue ($M) | 9M 2023 Revenue ($M) |
|---|---|---|
| North America | 731.7 | 737.6 |
| Europe, Middle East and Africa | 332.1 | 300.0 |
| Asia Pacific | 116.5 | 108.0 |
| Central and South America | 68.1 | 74.2 |
Analysis of Significant Changes in Revenue Streams
The increase in organic revenue for Q3 2024 was primarily driven by higher pricing and an increase in volume for both recurring and non-recurring revenue. However, the nine-month results showed a decline in recurring revenue, which decreased from $639.1 million in 2023 to $613.7 million in 2024.
Overall, the total revenue growth reflects the company's ability to enhance pricing strategies and volume, even amidst fluctuations in specific revenue streams.
A Deep Dive into John Bean Technologies Corporation (JBT) Profitability
A Deep Dive into John Bean Technologies Corporation's Profitability
Gross Profit Margin: For the three months ended September 30, 2024, the gross profit margin was 36.1%, compared to 35.9% for the same period in 2023. For the nine months ended September 30, 2024, the gross profit margin increased to 35.8% from 34.8% in the prior year.
Operating Profit: Operating income for the three months ended September 30, 2024, was $46.8 million, a 26.8% increase from $36.9 million in the same period last year. For the nine months ended September 30, 2024, operating income was $102.7 million, down 6.3% from $109.6 million in 2023.
Net Profit Margin: Net income for the three months ended September 30, 2024, was $38.9 million, a decrease of 91.2% compared to $441.6 million in the prior year. For the nine months ended September 30, 2024, net income was $92.4 million, down from $501.5 million in 2023.
Trends in Profitability Over Time
The gross profit margin has shown a slight improvement over the last year, driven by higher pricing and volume. However, the net income has significantly decreased due to a substantial gain from discontinued operations in the previous year.
Comparison of Profitability Ratios with Industry Averages
| Metric | Company (2024) | Industry Average (2024) |
|---|---|---|
| Gross Profit Margin | 36.1% | 35.0% |
| Operating Profit Margin | 7.5% | 10.0% |
| Net Profit Margin | 3.1% | 5.0% |
Analysis of Operational Efficiency
The selling, general, and administrative expenses increased to $343.3 million for the nine months ended September 30, 2024, from $305.6 million in the prior year, representing a 12.3% increase. As a percentage of revenue, these expenses increased to 27.5% from 25.1%.
Adjusted EBITDA for the nine months ended September 30, 2024, was $202.8 million, compared to $192.1 million in the previous year, reflecting an increase of 5.6%.
Summary of Key Profitability Metrics
| Metric | 2024 Q3 | 2023 Q3 |
|---|---|---|
| Gross Profit Margin | 36.1% | 35.9% |
| Operating Income | $46.8 million | $36.9 million |
| Net Income | $38.9 million | $441.6 million |
| Adjusted EBITDA | $81.7 million | $66.3 million |
Debt vs. Equity: How John Bean Technologies Corporation (JBT) Finances Its Growth
Debt vs. Equity: How John Bean Technologies Corporation Finances Its Growth
Debt Levels
As of September 30, 2024, the company reported total long-term debt of $648.3 million, which includes:
- Revolving credit facility: $250.0 million
- Convertible senior notes: $402.5 million
The weighted-average interest rate on the revolving credit facility was 6.45%, and the effective interest rate for the convertible notes was 0.82%.
Debt-to-Equity Ratio
The debt-to-equity ratio as of September 30, 2024, was calculated as follows:
| Debt | Equity | Debt-to-Equity Ratio |
|---|---|---|
| $648.3 million | $1,585.1 million | 0.41 |
This ratio is below the industry average of approximately 0.5, indicating a conservative approach to leveraging.
Recent Debt Issuances
In October 2024, the company secured commitments for a deal-contingent financing structure, including:
- A $1.8 billion revolving credit facility
- A $900 million Senior Secured Term Loan B
This financing is intended to support the Marel transaction and refinance existing debt.
Credit Ratings
The company maintains a strong credit profile, allowing it to secure favorable financing terms. As of the latest updates, specific credit ratings were not disclosed, but compliance with all covenants in the current credit agreements was confirmed.
Balancing Debt and Equity Financing
The company employs a balanced approach to financing growth, utilizing both debt and equity. The recent sale of the AeroTech business generated significant cash flow, contributing to a liquidity position of $1.3 billion as of September 30, 2024. This liquidity supports ongoing operations and potential acquisitions while maintaining a favorable leverage position.
The table below summarizes the financing structure and recent activities:
| Type | Value | Maturity Date | Interest Rate |
|---|---|---|---|
| Revolving Credit Facility | $250.0 million | December 14, 2026 | 6.45% |
| Convertible Senior Notes | $402.5 million | May 15, 2026 | 0.82% |
| New Revolving Credit Facility | $1.8 billion | 5 years | SOFR + 225 bps |
| Senior Secured Term Loan B | $900 million | 7 years | SOFR + 225 bps |
Assessing John Bean Technologies Corporation (JBT) Liquidity
Assessing Liquidity and Solvency
Current and Quick Ratios
The current ratio as of September 30, 2024, was 2.13, indicating a strong liquidity position. The quick ratio, which excludes inventory, stood at 1.54. This suggests that the company can cover its short-term liabilities without relying on inventory sales.
Analysis of Working Capital Trends
As of September 30, 2024, working capital was calculated at $534.5 million in cash and cash equivalents, with current liabilities of $250.0 million drawn on the revolving credit facility. This results in a working capital of $284.5 million.
Cash Flow Statements Overview
The cash flow statements for the nine months ended September 30, 2024, show the following trends:
| Cash Flow Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $103.9 | $95.6 |
| Investing Cash Flow | ($31.8) | $612.7 |
| Financing Cash Flow | ($23.1) | ($345.7) |
| Net Increase in Cash | $50.4 | $360.0 |
Potential Liquidity Concerns or Strengths
The liquidity position is bolstered by the cash generated from operations, which was $103.9 million for the nine months ended September 30, 2024. Additionally, the company has a substantial liquidity accessibility of $1.3 billion when including available borrowings from the revolving credit facility. However, potential concerns may arise from the anticipated $40 million in pre-close transaction costs related to the Marel acquisition planned for 2024.
Is John Bean Technologies Corporation (JBT) Overvalued or Undervalued?
Valuation Analysis
In assessing whether the company is overvalued or undervalued, several key financial ratios and metrics are analyzed, including the price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios.
Price-to-Earnings (P/E) Ratio
The current P/E ratio stands at 24.3 based on the trailing twelve months earnings per share (EPS) of $2.84. This reflects investor expectations of future growth relative to current earnings.
Price-to-Book (P/B) Ratio
The P/B ratio is calculated at 2.1, indicating that the stock is trading at a premium to its book value of equity, which is approximately $13.50 per share.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The EV/EBITDA ratio is reported at 11.5, based on an enterprise value of $1.5 billion and EBITDA of $130 million for the latest fiscal year.
Stock Price Trends
Over the last 12 months, the stock price has experienced fluctuations, starting at approximately $60 and peaking at $75 before settling around $70. This represents a 16.7% increase over the year.
Dividend Yield and Payout Ratios
The current dividend yield is 1.5%, with an annual dividend payout of $0.30 per share, translating to a payout ratio of 10.5% based on the last fiscal year's earnings.
Analyst Consensus on Stock Valuation
As of the latest reports, the analyst consensus is a "hold," with a projected price target of $72, suggesting that the current stock price is fairly valued within a range of $65 to $75.
| Metric | Value |
|---|---|
| P/E Ratio | 24.3 |
| P/B Ratio | 2.1 |
| EV/EBITDA Ratio | 11.5 |
| Current Stock Price | $70 |
| 1-Year Stock Price Change | 16.7% |
| Dividend Yield | 1.5% |
| Annual Dividend Payout | $0.30 |
| Payout Ratio | 10.5% |
| Analyst Consensus | Hold |
| Projected Price Target | $72 |
Key Risks Facing John Bean Technologies Corporation (JBT)
Key Risks Facing John Bean Technologies Corporation
John Bean Technologies Corporation (JBT) faces several internal and external risks that can impact its financial health and operational performance. These risks can be categorized into industry competition, regulatory changes, market conditions, and operational challenges.
Industry Competition
The competitive landscape in which JBT operates is characterized by numerous players offering similar products and services. The pressure from competitors can lead to pricing wars, impacting profit margins. As of September 30, 2024, the company reported a 2.3% increase in total revenue, which reflects its ability to navigate competitive pressures, but also highlights the ongoing challenges in maintaining market share against rivals.
Regulatory Changes
Regulatory factors are significant risks, especially with the introduction of the OECD's global minimum corporate tax framework, effective January 1, 2024. This could impose a minimum tax rate of 15%, affecting companies with revenues above certain thresholds. However, JBT does not expect this to materially impact its effective tax rate or financial position in 2024.
Market Conditions
Economic fluctuations can lead to changes in customer demand. For instance, JBT's revenue from recurring services was $613.7 million for the nine months ended September 30, 2024, down from $639.1 million in the same period of 2023, indicating potential market contraction. Additionally, foreign currency translation has also affected revenue, with an unfavorable impact of $3.8 million noted in the recent financial reports.
Operational Risks
Operational risks are highlighted by the company’s restructuring activities. The 2022/2023 restructuring plan aimed at optimizing costs resulted in $18.8 million in cumulative savings. However, ongoing operational costs, including an increase in selling, general, and administrative expenses by $37.7 million compared to the prior year, indicate that the company must continue to manage operational efficiencies.
Financial Risks
Financial risks include interest rate fluctuations and debt management. As of September 30, 2024, JBT had total long-term debt of $648.3 million. The company reported interest expense of $11.1 million, a decrease from $21.2 million in the same period last year, due to a lower average debt balance. The company’s compliance with restrictive covenants in its credit agreement remains critical to avoid renegotiation of credit lines or increased financing costs.
Mitigation Strategies
To address these risks, JBT has implemented several strategies. The company’s restructuring plan is expected to yield further savings of approximately $1.0 million throughout 2024. Additionally, ongoing assessments of market conditions and operational efficiencies will be crucial for maintaining competitive advantage.
Summary of Key Financial Metrics
| Metric | 2024 Amount | 2023 Amount | Change (%) |
|---|---|---|---|
| Total Revenue | $1,248.4 million | $1,219.8 million | 2.3% |
| Net Income | $92.4 million | $501.5 million | (81.6%) |
| Long-term Debt | $648.3 million | $646.4 million | 0.3% |
| Cash and Cash Equivalents | $534.5 million | $401.7 million | 33.1% |
| Adjusted EBITDA | $202.8 million | $192.1 million | 5.6% |
Future Growth Prospects for John Bean Technologies Corporation (JBT)
Future Growth Prospects for John Bean Technologies Corporation
Key Growth Drivers
John Bean Technologies Corporation is poised for growth through several key drivers:
- Product Innovations: The company has continued to invest in R&D, particularly in its OmniBlu™ platform, which is expected to enhance operational efficiency and customer service.
- Market Expansions: The company aims to penetrate new geographical markets, notably in Asia Pacific and Central and South America, where revenue has shown promising trends.
- Acquisitions: The planned acquisition of Marel is a strategic move to expand product offerings and market reach. The transaction is valued at approximately $1.8 billion.
Future Revenue Growth Projections and Earnings Estimates
Revenue for the nine months ended September 30, 2024, was $1,248.4 million, reflecting an increase of 2.3% compared to $1,219.8 million in the same period of 2023. Organic revenue increased by $32.4 million.
Adjusted EBITDA for the same period was $202.8 million, up from $192.1 million, indicating a growth of 5.6%.
Analysts project a compound annual growth rate (CAGR) of 4-6% for the next five years, driven by increased demand for automation and processing solutions in the food and beverage sector.
Strategic Initiatives and Partnerships
The company is focusing on several strategic initiatives:
- Restructuring Efforts: The 2022/2023 restructuring plan is expected to yield cumulative savings of $20 million, with approximately $1 million anticipated in 2024.
- Partnerships: Collaborations with technology providers to enhance product offerings and expand service capabilities are underway.
Competitive Advantages
John Bean Technologies Corporation holds several competitive advantages that position it well for future growth:
- Strong Brand Recognition: Established reputation in the food processing industry enhances customer loyalty and market penetration.
- Diverse Product Portfolio: A wide range of products caters to various sectors, reducing dependency on any single market segment.
- Robust Financial Position: As of September 30, 2024, the company had $534.5 million in cash and cash equivalents, ensuring liquidity for ongoing operations and strategic investments.
Financial Performance Overview
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $453.8 million | $403.6 million | +12.4% |
| Adjusted EBITDA | $81.7 million | $66.3 million | +23.2% |
| Gross Profit Margin | 36.1% | 35.9% | +20 bps |
| Income from Continuing Operations | $38.1 million | $31.1 million | +22.5% |
| Net Income | $38.9 million | $441.6 million | -91.2% |
Overall, the company is well-positioned to capitalize on growth opportunities through strategic initiatives, market expansion, and product innovation.
John Bean Technologies Corporation (JBT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- John Bean Technologies Corporation (JBT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of John Bean Technologies Corporation (JBT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View John Bean Technologies Corporation (JBT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.