Bel Fuse Inc /Nj (NASDAQ: BELFA)

Sector: Technology Industry: Electronic Components CIK: 0000729580
Market Cap 2.87 Bn
P/B 7.82
P/E 52.44
P/S 5.47
ROIC (Qtr) 11.05
Div Yield % 0.14
Rev 1y % (Qtr) 44.76
Total Debt (Qtr) 249.46 Mn
Debt/Equity (Qtr) 0.58
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About

Bel Fuse Inc., a company with a rich history spanning 75 years, is a prominent player in the design, manufacturing, and marketing of a wide range of products that power, protect, and connect electronic circuits. Bel's operations extend across various markets, including networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and eMobility. The company's product portfolio is categorized into three primary segments: Power Solutions and Protection, Connectivity Solutions,...

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Investment thesis

Bull case

  • Healthy cash reserves of 57.74M provide 7.03x coverage of short-term debt 8.21M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 59.39M provides strong 10.57x coverage of stock compensation 5.62M, indicating sustainable incentive practices.
  • Robust free cash flow of 53.02M exceeds capital expenditure of 6.37M by 8.32x, indicating strong organic growth funding capability.
  • Retained earnings of 409.42M provide full 1.70x coverage of long-term debt 241.24M, indicating strong internal capital position.
  • Tangible assets of 516.95M provide robust 8.04x coverage of other current liabilities 64.33M, indicating strong asset backing.

Bear case

  • Operating cash flow of 59.39M barely covers its investment activities of (298.16M), with a coverage ratio of -0.20, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 59.39M provides thin coverage of dividend payments of (3.46M) with a -17.16 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (298.16M) provide weak support for R&D spending of 29.81M, which is -10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 57.74M provide limited coverage of acquisition spending of (321.33M), which is -0.18x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 59.39M barely covers operating expenses of (134000) with a -443.19 ratio, suggesting thin operational efficiency margins and limited flexibility.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Electronic Components
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APH Amphenol Corp /De/ 180.75 Bn 42.33 7.83 15.50 Bn
2 GLW Corning Inc /Ny 111.40 Bn 69.80 7.13 8.43 Bn
3 TEL TE Connectivity plc 69.66 Bn 33.75 3.85 5.71 Bn
4 CLS Celestica Inc 33.17 Bn 47.38 2.94 0.78 Bn
5 JBL Jabil Inc 27.80 Bn 39.54 0.89 3.37 Bn
6 FLEX Flex Ltd. 24.18 Bn 28.38 0.90 5.02 Bn
7 FN Fabrinet 17.82 Bn 47.27 4.58 0.06 Bn
8 TTMI Ttm Technologies Inc 9.30 Bn 70.47 3.34 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.01 3.02
EV to Cash from Ops. EV/CFO 30.98 -590.38
EV to Debt EV to Debt 11.51 107.94
EV to EBIT EV/EBIT 41.22 20.68
EV to EBITDA EV/EBITDA 33.25 -27.60
EV to Free Cash Flow [EV/FCF] EV/FCF 34.53 -537.03
EV to Market Cap EV to Market Cap 1.00 -1.14
EV to Revenue EV/Rev 5.47 96.65
Price to Book Value [P/B] P/B 7.82 6.99
Price to Earnings [P/E] P/E 52.44 -8.83
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -13.58 1.07
Dividend Payout Ratio % Div Payout % (Qtr) 4.90 20.91
Dividend per Basic Share Div per Share (Qtr) 0.24 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 5.73 10.42
Interest Coverage Int. cover (Qtr) 6.75 14.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 32.98 -43.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -56.99 125.88
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.20 -176.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 38.04 14.38
EBIT Growth (1y) % EBIT 1y % (Qtr) 41.52 15.28
EBT Growth (1y) % EBT 1y % (Qtr) 23.61 7.50
EPS Growth (1y) % EPS 1y % (Qtr) 19.90 2.30
FCF Growth (1y) % FCF 1y % (Qtr) -36.23 9.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.32 15.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.68 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.05 0.05
Cash Ratio Cash Ratio (Qtr) 0.46 1.48
Current Ratio Curr Ratio (Qtr) 3.06 3.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.58 0.68
Interest Cover Ratio Int Coverage (Qtr) 6.75 14.05
Times Interest Earned Times Interest Earned (Qtr) 6.75 14.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19.10 21.48
EBIT Margin % EBIT Margin % (Qtr) 15.18 -42.60
EBT Margin % EBT Margin % (Qtr) 12.93 -10.39
Gross Margin % Gross Margin % (Qtr) 38.70 31.37
Net Profit Margin % Net Margin % (Qtr) 11.40 -11.50