BELFA  Bel Fuse Inc.

Exchange

NASDAQ

Sector

Capital Goods

Industry

Electrical Products

Market Cap.

252.06M

Vuru Grade

41.22/100

Current Price

$20.96
+0.00 (+0.00%)

Growth Price

$30.74
Undervalued by 46.65%

Stability Price

$0.14
Overvalued by 99.35%

Company Metrics

  • P/E 10.0253
  • P/S 0.5
  • P/B 1.59
  • EPS -5.44
  • Cash ROIC 7.01%
  • Cash Ratio 0.80
  • Dividend 0.24 / 1.1%
  • Avg. Vol. 1,854.00
  • Shares 12.03M
  • Market Cap. 252.06M

Company Description

Bel Fuse Inc. engages in the design, manufacture, and sale of products used in networking, telecommunications, high speed data transmission, and consumer electronics in North America, Europe, and Asia. Its magnetics products comprise MagJack integrated connector modules that provide the signal conditioning, electromagnetic interference suppression, and signal isolation; diplexer and triplexer filt... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Bel Fuse Inc. (BELFA) Ex-Dividend Date Scheduled for April 11, 2017
Nasdaq - Apr 10, 2017
Bel Fuse Inc. ( BELFA ) will begin trading ex-dividend on April 11, 2017. A cash dividend payment of $0.06 per share is scheduled to be paid on May 01, 2017.
Bel Fuse, Inc. (BELFB) Shares Bought by Dimensional Fund Advisors LP - BBNS
24.20
MarketWatch - Dec 22, 2009
Bel Fuse Inc. Cl B. Bel Fuse, Inc. engages in the development, manufacture, and trade of products, which powers, protects, and connects electronic circuits.
Bel Fuse Inc. Cl B BELFB (US: Nasdaq)
Wall Street Journal - Feb 12, 2011
News Bel Fuse Inc. Cl BBELFB. Significant News Only. 04/20/17; Press Release. Bel Will Report First Quarter 2017 Results on May 3, 2017.
Bel Fuse Inc. Class B Common Stock (BELFB) Moves Lower on Volume Spike for ...
Equities.com - Apr 25, 2017
Bel Fuse Inc. Class B Common Stock (BELFB) traded on unusually high volume on Apr. 25, as the stock lost 0.21% to close at $23.60.
Bel Fuse, Inc. (BELFB) Analysts See $0.00 EPS; Hydrogenics New (HYGS) SI ...
HuronReport - Apr 26, 2017
Analysts expect Bel Fuse, Inc. (NASDAQ:BELFB) to report $0.00 EPS on May, 3 before the open. The stock increased 4.87% or $1.15 during the last trading session, reaching $24.75.
Bel Fuse announces global distribution agreement with Arrow Electronics
Seeking Alpha - Dec 14, 2016
Bel Fuse Inc. (NASDAQ:BELFA) announced an agreement with Arrow Electronics (NYSE:ARW) for worldwide distribution and support for all current and future Bel subsidiaries in numerous product areas.
Avnet Expands Interconnect and Power Portfolio with New Global Bel Fuse ...
Yahoo Finance - Apr 19, 2017
Avnet (NYSE: AVT), a leading global technology distributor, and Bel Fuse Inc. (NASDAQ:BELFA and NASDAQ:BELFB), a leading global manufacturer of products that power, protect and connect electronic circuits, today announced the signing of an expanded ...
Bel Fuse, Inc. (BELFA) Analysts See $0.00 EPS; Sharps Compliance (SMED) Shorts ...
HuronReport - Apr 21, 2017
Analysts expect Bel Fuse, Inc. (NASDAQ:BELFA) to report $0.00 EPS on May, 5. About 108 shares traded. Bel Fuse, Inc. (NASDAQ:BELFA) has risen 10.34% since September 14, 2016 and is uptrending. It has underperformed by 0.49% the S&P500. Sharps ...
Bel Fuse' (BELFB) CEO Daniel Bernstein on Q4 2016 Results - Earnings Call ...
Seeking Alpha - Feb 17, 2017
Good day and welcome to the Bel Fuse Inc. Fourth Quarter and Full Year 2016 Results Conference Call. Today's conference is being recorded.
Mario Gabelli Targets Tiny Bel Fuse and its Dual-Class Structure
TheStreet.com - Jan 26, 2017
Activist Mario Gabelli has never been one to shy away from a challenge. His Gamco Asset Management Inc. ( GBL) has picked a difficult target in tiny Bel Fuse Inc. (BELFA) , pushing for change at a company with a dual-class structure designed to keep ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BELFA to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BELFA's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$20.96 Current Price

$30.74 Growth Price (DCF)

Undervalued by 46.65%


Growth Rate Assumed by Market: -20.14%


Future Free Cash Flow Growth Rate: 2.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.14 Stability Price (EPV)

Overvalued by 99.35%


Discount Rate: 15.0%

$13.65 Book Price

Overvalued by 34.88%


Poor Cash Return on Invested Capital over the past 5 years

BELFA has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

BELFA has only created $7.01 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 6.87M 2.31M 13.42M 55.90M 30.38M
divided by
Invested Capital 157.57M 179.04M 437.09M 379.95M 261.00M
Cash ROIC 4.36% 1.29% 3.07% 14.71% 11.64%

Very Poor Return on Equity over the past 5 years

BELFA has shown an inability to deliver results for shareholders. This could be due to poor management, BELFA operating in a highly competitive industry, or having a weak business in general.

BELFA has generated a $4.11 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 2.40M 15.91M 9.10M 19.20M -64.83M
divided by
Stockholders' Equity 215.39M 228.70M 224.75M 233.12M 158.43M
Return on Equity 1.12% 6.96% 4.05% 8.23% -40.92%

Excellent Business Performance over the past 10 years

BELFA has been able to maintain profitability in good times and bad. This could mean BELFA has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BELFA has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 10.58M 3.10M 26.80M 5.21M 27.34M 6.87M 2.31M 13.42M 55.90M 30.38M

Weak Balance Sheet

BELFA's financial position is not ideal. The key is to check whether BELFA is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 87.15M 92.70M 124.23M 85.54M 93.97M 71.26M 62.12M 77.14M 85.04M 73.41M
Current Assets 206.23M 193.62M 195.83M 203.56M 207.69M 191.14M 204.19M 310.66M 285.45M 255.44M
Total Assets 293.86M 261.78M 245.95M 277.17M 276.91M 275.22M 308.05M 636.03M 587.01M 426.74M
Current Liabilities 33.06M 29.63M 28.00M 46.27M 42.43M 46.39M 66.89M 121.80M 122.03M 92.33M
Total Liabilities 49.33M 44.01M 37.01M 56.84M 55.83M 59.83M 79.35M 411.27M 353.89M 268.31M
Stockholder' Equity 244.53M 217.77M 208.93M 220.33M 221.08M 215.39M 228.70M 224.75M 233.12M 158.43M
Current Ratio 6.24 6.53 6.99 4.40 4.90 4.12 3.05 2.55 2.34 2.77
TL-to-TA 0.17 0.17 0.15 0.21 0.20 0.22 0.26 0.65 0.60 0.63

Low or No Reinvestment of Profits over the past 10 years

BELFA has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to BELFA operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 214.58M 196.47M 185.01M 195.48M 196.03M 195.21M 207.99M 213.90M 229.37M 161.29M
Retained Earnings Growth - -8.44% -5.83% 5.66% 0.28% -0.42% 6.55% 2.84% 7.23% -29.68%

Highly Competitive Industry over the past 10 years

It's likely that BELFA is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely BELFA invests heavily in R&D and Sales, General & Administrative expenses.

Only $0.33 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 26.34M -14.93M -8.31M 13.65M 3.76M 2.40M 15.91M 9.10M 19.20M -64.83M
divided by
Revenue 259.14M 258.35M 182.75M 302.54M 295.12M 286.59M 349.19M 487.08M 567.08M 500.15M
Net Profit Margin 10.16% -5.78% -4.55% 4.51% 1.28% 0.84% 4.56% 1.87% 3.39% -12.96%

Inconsistent Gross Profit Margins over the past 10 years

BELFA has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$26.15 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 56.13M 41.27M 21.30M 63.35M 295.12M 46.50M 62.24M 87.98M 108.83M 99.91M
divided by
Revenue 259.14M 258.35M 182.75M 302.54M 295.12M 286.59M 349.19M 487.08M 567.08M 500.15M
Gross Margin 21.66% 15.97% 11.65% 20.94% 100.00% 16.23% 17.82% 18.06% 19.19% 19.98%

High Capital Intensity over the past 10 years

BELFA spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

75.89% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 9.27M 7.19M 2.36M 2.43M 2.93M 4.74M 8.28M 9.04M 9.89M 8.22M
divided by
Net Income 26.34M -14.93M -8.31M 13.65M 3.76M 2.40M 15.91M 9.10M 19.20M -64.83M
Capital Expenditure Ratio 35.20% -48.14% -28.36% 17.78% 77.79% 197.50% 52.02% 99.42% 51.52% -12.68%

Very Strong Dividend History over the past 10 years

BELFA has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests BELFA is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 2.47M 3.19M 3.14M 3.18M 3.21M 3.23M 3.11M 3.16M 3.24M 3.25M
divided by
Shares Outstanding 11.90M 11.53M 11.54M 11.68M 11.77M 11.80M 11.41M 11.67M 11.87M 11.92M
Dividend Paid Per Share 0.21 0.28 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.27
Price at Year End 32.29 16.73 19.37 24.85 21.14 16.96 19.37 24.02 14.97 25.31
Dividend Yield 0.64% 1.66% 1.40% 1.10% 1.29% 1.61% 1.41% 1.13% 1.82% 1.08%

History of Stock Buybacks over the past 10 years

BELFA has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 11.90M 11.53M 11.54M 11.68M 11.77M 11.80M 11.41M 11.67M 11.87M 11.92M
Stock Bought Back - 3.26% -0.10% -1.20% -0.79% -0.23% 3.37% -2.16% -1.74% -0.43%
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