BDC

Belden

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

Belden generates cash by designing and manufacturing mission-critical communication equipment that forms the backbone of data transmission networks. Its products are embedded deep within customer infrastructure, creating switching costs and recurring upgrade cycles as networks scale and modernize. The company’s 18.80% operating margin reflects specialization and engineering intensity rather than commodity exposure, allowing it to capture value through performance differentiation. Cash flow is driven by a combination of hardware sales tied to infrastructure expansion and replacement demand, reinforced by long-term relationships in industrial and enterprise network environments.

VALUATION

P/E

21.8

Market Cap ($M USD)

$4,985

Forward P/E

14.5

PEG

1.3

PRICE TO SALES

1.9

PRICE TO BOOK

4

EV / EBITDA

13.50

5-Year Average P/E

DIVIDEND

Yield

0.20%

Annual Payout

$0.20

Payout Ratio

3.30%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

0.00%

Financial Health & Profitability

Earnings Per Share

$6.00

Next Year EPS Growth Estimate

$8.90

Next Year Revenue Growth Estimate

4.60%

Return on Equity (ROE)

18.80%

Operating Margin

11.60%

Debt-to-Equity

1.1

Piotroski F-Score

8

Altman Z-Score

3.2

Return on Invested Capital (ROIC)

10.70%%

Current Ratio

1.9

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 21.8x earnings and 14.5x forward earnings, the market is already discounting a meaningful earnings normalization, especially with EPS listed at 13.50 versus next year’s estimate of 6.00. The compression to a 14.5 forward P/E alongside a PEG of 1.3 suggests moderate growth expectations rather than hyper-optimism, while an Altman Z-Score of 3.2 signals solid balance sheet stability with low near-term bankruptcy risk. A Piotroski F-Score of 8 reinforces operational strength and accounting quality, indicating this is not a distressed multiple masking deterioration. The valuation feels more “tempered GARP” than deep value, but the combination of profitability metrics and financial safety implies the market is pricing in a slowdown without assigning distress risk. Overall, this looks like a financially sound operator trading at a reasonable forward multiple, not a broken story.

AI Exposure / Tech Reliance

As a Communication Equipment company within the Technology sector, Belden sits directly in the infrastructure layer that enables AI-driven data transmission and network modernization. AI workloads increase bandwidth, latency sensitivity, and infrastructure complexity, all of which structurally benefit communication hardware suppliers. The company’s ability to maintain an 18.80% operating margin suggests it has pricing power and technical specialization in a segment where performance and reliability are critical.

The Bull Case

A GARP or disciplined value investor would be drawn to the 10.70% ROIC combined with an 18.80% operating margin, signaling efficient capital deployment and strong operating leverage. The Piotroski F-Score of 8 is a major institutional green light, indicating improving fundamentals, solid cash flow characteristics, and disciplined balance sheet management. With a Current Ratio of 1.9 and Debt/Equity at 11.60%, leverage is modest and liquidity is healthy, reinforcing the Altman Z-Score of 3.2 as evidence of financial durability. A forward P/E of 14.5 for a company generating double-digit ROIC and positive sales growth expectations positions it squarely in the sweet spot for GARP investors seeking earnings resilience without paying premium multiples. Add in 1.1% TTM yield and minimal short interest at 0.00%, and you have a fundamentally supported equity with limited visible bearish pressure.

The Bear Case

The glaring issue is the projected EPS drop from 13.50 to 6.00 next year, which implies a dramatic earnings contraction that could justify the market’s cautious stance. A PEG of 1.3 is not cheap if growth is decelerating, and a Price/Book of 4 limits the margin of safety for deep value investors. Return on Equity at 4.60% is uninspiring relative to the 10.70% ROIC, suggesting equity efficiency is weaker than operating returns imply. The dividend profile is negligible, with a 1.1% yield and minimal payout support, offering little downside cushion. If earnings volatility persists, the current valuation could compress further despite the clean balance sheet.

Market Sentiment & Smart Money

Short Interest %

6.20%

Analyst Consensus

1.67

Average Analyst Price Target

$168.00

Institutional Ownership %

105.10%

1-Year Beta

1.45

Insider Buying % (6 Mo)

1.70%%

Distance to 52-Week High

80.40%%

Distance to 52-Week Low

144.30%%