Why JBT Looks Good

by | Oct 9, 2021

Check out John Bean Technologies (Ticker: JBT). It’s an aerotech company that makes food processing machinery and equipment. Strong position, growth drivers, and cash for organic/inorganic opportunities. JBT has shown that it’s capable of executing well on a strategy that has worked well in the past, and this playbook should continue to work well in the future.


  • The stock performance since September 2018 has been mixed. The stock price of JBT is up ~15% vs. the index is up ~40% and the S&P 500 index is up ~50%.


  • JBT’s business fundamentals look stronger relative to the rest of the industry. Compared to full-sized companies, its sales are rising faster. Foodtech seems to have improved after a long period of stagnation. Aerotech is looking much healthier now. While there are concerns related to the price/cost/supply chain issues, recent execution suggests that these challenges can be managed well.


  • JBT has strong FCF results and limited M&A over the past two years, which means it could add 13% to its earnings by 2023 via acquisitions. This demonstrates that acquisitions should be a bigger part of the story over the next couple years.