Bel Fuse Inc (BELFB) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: 0.16%
• Average Volume (3M): 122.09K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 1.42
• Revenue Growth: 23.70%
• EPS Growth: 14.78%
• Country: US
• Employees: 5,370
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.09
• Shares Outstanding: 10,545,300
• 10 Day Avg. Volume: 93,627
• 30 Day Avg. Volume: 122,086
• PEG Ratio: -0.58
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 1.93
• P/FCF Ratio: 17.26
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 8.13
• Enterprise Value/Ebitda: 15.35
• 1Y Price Target: $176.50
• Price Target Upside: -2.50% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $180.00 ▼(-0.57% Downside)

Bel Fuse Inc. is on a positive growth trajectory with strong financial performance and a bullish technical outlook. The earnings call highlighted significant sales growth and margin expansion, contributing to a positive sentiment. However, the high P/E ratio and low dividend yield suggest valuation concerns, and cash flow management remains an area for improvement.

Positive Factors

Revenue Growth

Significant sales growth indicates strong demand across product lines, enhancing market position and supporting long-term expansion.

Margin Expansion

Improved margins reflect operational efficiencies and better cost management, contributing to sustained profitability.

Debt Reduction

Reducing debt enhances financial flexibility and strengthens the balance sheet, supporting future growth initiatives.

Negative Factors

Cash Flow Challenges

Negative cash flow growth may impact liquidity and limit the ability to invest in growth opportunities, posing long-term risks.

Impairment Charge

The impairment charge due to investment in Innolectric reflects challenges in the eMobility sector, affecting financial performance.

Foreign Exchange Pressures

Currency fluctuations can erode profit margins, impacting international competitiveness and financial stability.

Bel Fuse Inc 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. generates revenue through the sale of its electronic components and power solutions across multiple industries. Key revenue streams include the manufacturing of magnetics, connectors, and power supplies, which are sold to original equipment manufacturers (OEMs) and distributors. The company's strategic partnerships with major technology firms and its presence in high-growth markets like telecommunications and renewable energy further enhance its earnings potential. Additionally, Bel Fuse benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing while driving profitability.

Bel Fuse Inc Financial Statement Overview

Summary

Bel Fuse Inc. demonstrates strong revenue growth and profitability, with efficient operations reflected in healthy margins. The balance sheet shows a balanced leverage position, though cash flow metrics indicate potential liquidity issues. Overall, the company is on a positive growth trajectory but should focus on improving cash flow management.

Income Statement

Bel Fuse Inc. shows a strong revenue growth rate of 9.32% in the TTM, indicating a positive trajectory. The gross profit margin of 37.84% and net profit margin of 8.59% reflect solid profitability, although there is room for improvement in net margins. The EBIT and EBITDA margins are healthy at 14.72% and 18.53%, respectively, suggesting efficient operations.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.68, indicating a balanced approach to leverage. The return on equity (ROE) is 13.52%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, which could provide further insights into financial stability.

Cash Flow

Free cash flow growth is negative at -7.14%, which is a concern. The operating cash flow to net income ratio is 0.52, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.74, suggesting that cash flows are not fully covering net income, which could pose liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	649.38M	534.79M	639.81M	654.23M	543.49M	465.77M
Gross Profit	251.25M	202.36M	215.85M	183.45M	134.38M	119.73M
EBITDA	133.10M	82.34M	99.46M	77.30M	47.73M	33.30M
Net Income	65.19M	40.96M	73.83M	52.69M	24.82M	12.79M
Balance Sheet
Total Assets	952.80M	949.79M	571.63M	560.47M	511.85M	453.87M
Cash, Cash Equivalents and Short-Term Investments	57.74M	69.20M	126.92M	70.27M	61.76M	84.94M
Total Debt	249.46M	318.21M	82.10M	118.67M	134.05M	130.24M
Total Liabilities	443.77M	508.63M	231.07M	298.12M	303.10M	268.07M
Stockholders Equity	427.76M	360.58M	340.56M	262.35M	208.74M	185.80M
Cash Flow
Free Cash Flow	44.61M	59.96M	96.22M	31.43M	-4.76M	40.63M
Operating Cash Flow	59.39M	74.06M	108.35M	40.26M	4.63M	46.11M
Investing Cash Flow	-298.16M	-297.89M	-53.53M	-7.00M	-18.88M	-1.51M
Financing Cash Flow	159.45M	206.26M	-38.60M	-21.26M	-8.40M	-32.14M

Bel Fuse Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 181.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BELFB, the sentiment is Positive. The current price of 181.03 is above the 20-day moving average (MA) of 174.37, above the 50-day MA of 162.20, and above the 200-day MA of 120.49, indicating a bullish trend. The MACD of 5.02 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 86.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BELFB.

Bel Fuse Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BELFA	77 Outperform	$2.25B	31.37	16.40%	0.15%	23.70%	14.78%
BELFB	73 Outperform	$2.25B	35.46	16.40%	0.16%	23.70%	14.78%
CTS	73 Outperform	$1.31B	23.22	10.98%	0.36%	3.70%	1.68%
BHE	72 Outperform	$1.59B	43.48	3.37%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ROG	58 Neutral	$1.67B	-25.88	-5.34%	―	-4.87%	-235.48%
MEI	50 Neutral	$242.19M	-3.98	-8.87%	5.93%	-9.51%	29.57%