Bel Fuse (BELFA) AI Stock Analysis

• Market Cap: $759.53M
• Dividend Yield: 0.4%
• Average Volume (3M): 6.04K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 1.50
• Revenue Growth: -16.41%
• EPS Growth: -44.24%
• Country: US
• Employees: 5,370
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.31
• Shares Outstanding: 2,115,263
• 10 Day Avg. Volume: 4,656
• 30 Day Avg. Volume: 6,035
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.71
• Price to Cash Flow (P/CF): 27.40
• P/FCF Ratio: 121.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $115.00
• Price Target Upside: 88.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Bel Fuse's overall stock performance reflects a balance of strengths and challenges. The company's financial performance indicates profitability but also concerns with revenue and cash flow declines. Technical analysis suggests a bearish trend, while valuation shows potential overvaluation relative to the current financial state. The earnings call provides optimism for future growth, driven by strategic initiatives and market opportunities. However, ongoing challenges and tariff impacts remain key risks.

Bel Fuse Business Overview & Revenue Model

Company Description

Bel Fuse Inc. designs, manufactures, markets, and sells products that are used in the networking, telecommunication, high-speed data transmission, commercial aerospace, military, broadcasting, transportation, e-Mobility and broadcasting, and consumer electronic industries in the United States, Macao, the United Kingdom, Slovakia, Germany, Switzerland, and internationally. It offers magnetic products, such as integrated connector modules; power transformers; SMD power inductors and SMPS transformers; and ethernet discrete components. The company also provides power solutions and protection products comprising front-end power supplies; board-mount power; industrial power; external power; and circuit protection products. In addition, it offers connectivity solutions, which includes expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity. The company sells its products under the Bel, TRP Connector, MagJack, Signal, Bel Power Solutions, Melcher, CUI, Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex, and Stewart Connector brands through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors. Bel Fuse Inc. was incorporated in 1949 and is headquartered in Jersey City, New Jersey.

How the Company Makes Money

Bel Fuse Inc. makes money through the design, manufacture, and sale of its electronic products. The primary revenue streams include sales of its magnetic solutions, such as transformers and inductors; power solutions, including AC-DC and DC-DC power converters; and connectivity solutions like cable assemblies and connectors. The company leverages its extensive network of distributors and direct sales force to reach a global customer base. Significant partnerships with key players in sectors like telecommunications and data centers enhance their market presence. Additionally, Bel Fuse invests in research and development to innovate and maintain a competitive edge, further driving sales growth and profitability.

Bel Fuse Financial Statement Overview

Summary

Bel Fuse's financial statements present a mixed picture with both strengths and challenges. The income statement shows profitability through strong gross profit margins, but a decline in revenue and net income raises concerns. The balance sheet is stable with a solid equity ratio and manageable debt levels, offering a buffer against financial risks. Cash flow analysis reveals a decline in free cash flow, highlighting potential liquidity issues. While the company demonstrates a capacity to generate profits, it faces challenges in sustaining revenue growth and cash flow.

Income Statement

Bel Fuse shows a mixed performance in its income statement. The TTM data reveals a decline in total revenue by 16.42% compared to the previous year, while net income also fell by 33.37%. Despite these setbacks, the company maintains a strong gross profit margin of 37.83% in TTM, which is a positive indicator of its ability to control production costs. The EBIT margin is 12.02%, showing a reasonable level of profitability, although the EBITDA margin of 10.16% suggests room for improvement. Overall, while profitability margins are decent, the decline in revenue and net income is concerning.

Balance Sheet

Bel Fuse's balance sheet indicates stability with a debt-to-equity ratio of 0.87 in TTM, suggesting manageable leverage. The equity ratio improved to 37.96%, highlighting a strong equity base relative to total assets. Return on equity stands at 13.64%, indicating effective utilization of shareholder capital to generate profits. While the company's debt levels have increased, the robust equity and reasonable leverage ratios help mitigate potential risks.

Cash Flow

The cash flow statement of Bel Fuse presents a cautious outlook. Free cash flow decreased by 37.65% in TTM, reflecting potential pressures on liquidity. The operating cash flow to net income ratio is 1.51, suggesting solid cash generation relative to earnings. However, the free cash flow to net income ratio of 1.22 points to reduced cash availability for reinvestment or debt reduction. The significant drop in free cash flow growth is a concern for future financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
534.79M	639.81M	654.23M	543.49M	465.77M
	Gross Profit
202.36M	215.85M	183.45M	134.38M	119.73M
	EBIT
64.30M	87.98M	65.15M	8.63M	-793.00K
	EBITDA
82.34M	99.46M	84.79M	42.19M	27.96M
	Net Income Common Stockholders
40.96M	73.83M	52.69M	24.82M	12.79M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.20M	126.92M	70.27M	61.76M	84.94M
	Total Assets
949.79M	571.63M	560.47M	511.85M	453.87M
	Total Debt
313.22M	82.59M	116.61M	134.05M	130.24M
	Net Debt
244.96M	-6.79M	46.35M	72.29M	45.30M
	Total Liabilities
508.63M	231.07M	298.12M	303.10M	268.07M
	Stockholders Equity
360.58M	340.56M	262.35M	208.74M	185.80M
Cash Flow		Free Cash Flow
59.96M	96.22M	31.43M	-4.76M	40.63M
	Operating Cash Flow
74.06M	108.35M	40.26M	4.63M	46.11M
	Investing Cash Flow
-297.89M	-53.53M	-7.00M	-18.88M	-1.51M
	Financing Cash Flow
206.26M	-38.60M	-21.26M	-8.40M	-32.14M

Bel Fuse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BELFA, the sentiment is Negative. The current price of 60.95 is below the 20-day moving average (MA) of 72.55, below the 50-day MA of 78.54, and below the 200-day MA of 88.32, indicating a bearish trend. The MACD of -2.23 indicates Negative momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 18.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BELFA.

Bel Fuse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLXS	73 Outperform	$3.03B	26.16	9.27%	―	-3.53%	-3.90%
TTMI	61 Neutral	$1.81B	33.19	3.66%	―	9.41%	―
BELFA	61 Neutral	$759.53M	17.84	11.68%	0.40%	-16.41%	-44.24%
LFUS	61 Neutral	$3.77B	38.13	4.62%	1.80%	-7.28%	-56.46%
MRCY	61 Neutral	$2.60B	―	-6.10%	―	-1.21%	-4.63%
Sector *	57 Neutral	$18.52B	9.81	-13.96%	2.71%	5.07%	-23.65%
VSH	47 Neutral	$1.61B	26.74	-1.47%	3.37%	-13.65%	-110.03%

Bel Fuse Corporate Events

Bel Fuse Revises Incentive Awards for 2024

On March 12, 2025, Bel Fuse’s Board of Directors approved incentive awards for fiscal year 2024, recognizing the management team’s significant achievements despite not meeting certain performance metrics. The Compensation Committee identified flaws in the 2024 Incentive Program, which led to adjustments in the metrics and a more holistic approach for future compensation plans, ensuring alignment with shareholder interests and rewarding management’s efforts. This decision reflects Bel Fuse’s commitment to refining its incentive structure to better measure and reward company and individual performance.

Bel Fuse Expands Equity Plan Post-Enercon Acquisition

Bel Fuse Inc. announced the adoption of an Israeli Appendix to its 2020 Equity Compensation Plan, following its acquisition of 80% of Enercon Technologies Ltd. in November 2024. This appendix aims to facilitate participation by Israeli employees and service providers in the plan, ensuring compliance with Israeli tax laws. Additionally, Bel reported its fourth quarter and full year 2024 financial results, highlighting net sales of $534.8 million for 2024, a decrease from the previous year. Despite a challenging environment, the company achieved a strong gross profit margin, supported by its acquisition of Enercon, which is set to enhance Bel’s market position in aerospace and defense. The company is optimistic about 2025, focusing on growth initiatives and organizational efficiency.

Bel Fuse Announces CEO Transition in 2025

On February 3, 2025, Bel Fuse announced the transition of Daniel Bernstein from CEO to Non-Executive Chairman following the annual shareholder meeting on May 27, 2025. Farouq Tuweiq, the current CFO, will assume the CEO role after the meeting, marking a strategic leadership change aimed at continuing the company’s recent record performance and growth.