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Bel Fuse B (BELFB)
NASDAQ:BELFB
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Bel Fuse Inc
(NASDAQ:BELFB)
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Rating:76Outperform
Price Target:
$250.00
▲(6.66% Upside)
Action:ReiteratedDate:02/19/26
BELFB scores well due to improving profitability and strong, improving free cash flow, reinforced by a positive technical trend and an upbeat earnings outlook that includes ongoing debt reduction. The main offset is valuation risk from a high P/E, only partly balanced by the high dividend yield.
Positive Factors
Strong cash generation
Bel delivered a sharp jump in free cash flow in 2025 and sustained positive operating cash flow across 2022–2025. Reliable cash conversion supports durable capital allocation: funds capex, dividends, continued debt paydown, and selective M&A, improving financial resilience despite revenue swings.
Improving margins and profitability
Gross margin expansion to ~39% and net margin improvement reflect better fixed-cost absorption and SKU-level discipline. Higher sustainable margins increase earnings durability, fund R&D and dividend policies, and provide a buffer against cyclical revenue declines in end markets.
Balance sheet improvement / debt paydown
Active debt reduction and an improving 2025 leverage profile enhance financial flexibility and lower interest costs. A stronger balance sheet supports longer-term investments, better credit optionality and steadier dividend or buyback policies even if revenues prove lumpy.
Negative Factors
Revenue volatility and uneven top-line
The choppy revenue trajectory impairs long-term visibility for capacity and cost planning. Cyclical or lumpy orders from OEMs can undermine operating leverage and make sustaining margin improvements harder if demand weakens again, affecting multi-quarter forecasting.
Leverage variability
Wide swings in debt levels across recent years indicate episodic funding needs or opportunistic leverage. This variability raises refinancing and policy risk: leverage could re-accumulate in downturns, constraining consistent investment, dividends, or M&A over the medium term.
End-market weakness and structural cost/FX pressures
Management cited weaker eMobility/rail demand, rising minimum wages in Mexico/China, and unfavorable FX. Persistent soft demand in specific verticals plus structural labor and currency headwinds can erode margins and slow the recovery of those segments over multiple quarters.
Bel Fuse Inc (BELFB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.93B
Dividend Yield0.16%
Average Volume (3M)176.89K
Price to Earnings (P/E)46.6
Beta (1Y)1.39
Revenue Growth23.70%
EPS Growth14.78%
CountryUS
Employees5,370
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.98
Shares Outstanding10,545,300
10 Day Avg. Volume188,074
30 Day Avg. Volume176,890
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.84
Price to Sales (P/S)0.53
P/FCF Ratio5.28
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue4.66
Enterprise Value/Gross Profit11.90
Enterprise Value/Ebitda21.44
Forecast
1Y Price Target
$258.00Price Target Upside10.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bel Fuse Inc Business Overview & Revenue Model
Company DescriptionBel 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 MoneyBel 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 Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational and financial momentum for 2025 — including record revenue, margin expansion, meaningful segment growth, a healthy book-to-bill and substantial debt reduction — while acknowledging near-term headwinds from rising raw material costs, unfavorable FX, some margin pressure in Magnetics and seasonal/visibility constraints. Management outlined concrete mitigation actions (pricing, hedging, operational moves), continued investment in R&D and go-to-market improvements, and an active M&A pipeline, leading to optimism about sustained growth drivers (A&D, space, AI, networking).Q4-2025 Updates
Positive Updates
Record Full-Year Revenue and Earnings
Full year 2025 net sales of $675.5M, a 26.3% increase vs. 2024; company reported record EBITDA and record GAAP and non-GAAP EPS for 2025.
Strong Fourth Quarter Performance
Q4 2025 sales of $175.9M, up 17.4% year-over-year; Q4 gross margin 39.4% vs. 37.5% in Q4 2024.
Margin Expansion for the Year
Full year gross margin expanded to 39.1% in 2025 from 37.8% in 2024, driven by higher volumes and improved factory absorption.
Power Solutions Segment Outperformance
Q4 Power Solutions & Protection sales of $92.5M, up 18.5% YoY; segment gross margin of 44.5% in Q4, a 390 basis point improvement vs. Q4 2024.
Connectivity Solutions Growth
Q4 Connectivity sales of $60.5M, up 15.1% YoY; commercial aerospace sales $18.2M (+26% YoY), space applications $2.6M (+53% YoY) and distribution channel sales +20% YoY; segment gross margin improved to 37.2% from 36.6%.
Magnetic Solutions Volume Gains
Q4 Magnetic Solutions sales of $22.9M, up 19.1% YoY, driven by higher shipments to a major networking customer.
Order Momentum and Book-to-Bill Strength
Full year book-to-bill ratio of 1.1 with Q4 book-to-bill at 1.3, indicating sustained order strength across all segments.
Improved Balance Sheet Liquidity Actions
Paid down $90M of long-term debt in 2025, reducing total debt to $197.5M; generated $80.6M of cash from operations for the year.
Active Growth Initiatives and Leadership Additions
Management highlighted continued focus on aerospace, defense, space and AI growth drivers, an active M&A pipeline, and the addition of Tom Smelker to the executive team to support A&D strategy.
Guidance for Q1 2026
Q1 2026 sales guidance of $165M to $180M and gross margin guidance of 37% to 39%, with management noting continued strength across all three segments despite seasonal Lunar New Year impact.
Negative Updates
Rising Raw Material Costs
Management cited headwinds from higher prices for gold, copper and printed circuit boards which will pressure input costs and margin if not fully offset by pricing or sourcing actions.
Unfavorable Foreign Exchange Movements
Unfavorable FX in the peso, renminbi and shekel negatively impacted results; hedges mitigate roughly half of exposure but hedges are rolling off and FX pressure is expected to continue into 2026.
Segment Margin Pressure in Magnetics
Magnetic Solutions gross margin fell to 27.3% in Q4 2025 from 29.1% in Q4 2024 (down ~180 basis points), attributed to minimum wage increases in China, higher material costs and unfavorable renminbi FX impacts.
Declines in Specific End Markets
Notable decreases included rail product sales down $4.0M and e-mobility sales down $1.1M in Q4 2025 versus Q4 2024, reflecting pockets of softness.
Lower Year-End Cash Balance
Cash at year-end was $57.8M, down $10.5M year-over-year largely due to $90M of debt paydown, $12M of CapEx and dividend payments — reducing short-term liquidity despite improved leverage.
Seasonal and Operational Timing Risks
Lunar New Year seasonality (2–3 weeks of reduced activity) and timing of customer funding/design wins (long cycle A&D programs often 1–2 years to monetize) create near-term visibility constraints.
R&D and Integration Costs
Q4 R&D increased to $8.0M (+$1.1M YoY) due in part to inclusion of Entercom R&D; management expects R&D to remain at elevated levels to support new technologies and design wins.
Company Guidance
Management guided Q1 2026 revenue of $165.0–$180.0 million and gross margin of 37–39%, citing continued strength across all three segments but warning that higher raw‑material costs (notably gold, copper and PCBs) and unfavorable FX in the peso, renminbi and shekel could pressure margins (about half of FX exposure is hedged); the guide reflects typical Lunar New Year seasonality and follows a record 2025 (net sales $675.5M, +26.3% YoY; Q4 sales $175.9M, +17.4% YoY; FY gross margin 39.1%; Q4 gross margin 39.4%), with FY book‑to‑bill 1.1 (Q4 1.3), FY operating cash flow $80.6M, year‑end cash $57.8M, $197.5M total debt after $90M of 2025 paydowns, a weighted‑average debt rate of 4.4%, $12M capex and $3.5M in dividend payments—management said it will pursue pricing actions where appropriate and expects R&D to remain near Q4’s $8M level.Bel Fuse Inc Financial Statement Overview
Summary
Strong profitability and cash generation underpin the score: gross margin expanded materially (to ~39% in 2025), net margin improved (to ~9% in 2025), and operating/free cash flow were strong in 2022–2025 with a sharp FCF jump in 2025. Offsets are a choppy revenue path (declines in 2023–2024 before rebounding in 2025) and leverage variability (debt spike in 2024, then reduction in 2025).Income Statement
Profitability has improved materially versus earlier years, with gross margin expanding from ~25% (2020–2021) to ~39% (2025) and net margin rising to ~9% (2025). Revenue has been somewhat volatile (declines in 2023–2024 followed by a rebound in 2025), but earnings held up well overall, with net income remaining solid even through the softer revenue period. Key weakness is uneven top-line trajectory and less consistent operating margin visibility across years.78
Positive
Balance Sheet
The balance sheet shows solid equity support and improving leverage in the most recent year, with total debt declining from 2024 to 2025 while equity increased. Total assets are stable-to-slightly down versus 2024, suggesting balance sheet discipline. Main concern is leverage variability across the period (debt rose sharply in 2024 vs. 2023), and some leverage/return figures are not available in 2025, limiting a full read-through on current returns and risk.70
Positive
Cash Flow
Cash generation is a clear strength: operating cash flow and free cash flow are positive and strong in 2022–2025, with free cash flow jumping sharply in 2025 (over 50% growth). Free cash flow runs at a healthy level relative to net income across most years (generally ~0.8–0.9x in 2022–2025), indicating earnings quality. The key weakness is historical volatility, including very weak operating cash flow and negative free cash flow in 2021.83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 675.46M | 534.79M | 639.81M | 654.23M | 543.49M |
| Gross Profit | 264.42M | 202.36M | 215.85M | 183.45M | 134.38M |
| EBITDA | 136.39M | 82.34M | 99.46M | 77.30M | 47.73M |
| Net Income | 61.54M | 40.96M | 73.83M | 52.69M | 24.82M |
Balance Sheet | |||||
| Total Assets | 935.20M | 949.79M | 571.63M | 560.47M | 511.85M |
| Cash, Cash Equivalents and Short-Term Investments | 57.80M | 69.20M | 126.92M | 70.27M | 61.76M |
| Total Debt | 237.26M | 318.21M | 82.10M | 118.67M | 134.05M |
| Total Liabilities | 416.53M | 508.63M | 231.07M | 298.12M | 303.10M |
| Stockholders Equity | 425.51M | 360.58M | 340.56M | 262.35M | 208.74M |
Cash Flow | |||||
| Free Cash Flow | 67.93M | 59.96M | 96.22M | 31.43M | -4.76M |
| Operating Cash Flow | 79.93M | 74.06M | 108.35M | 40.26M | 4.63M |
| Investing Cash Flow | -3.25M | -297.89M | -53.53M | -7.00M | -18.88M |
| Financing Cash Flow | -93.47M | 206.26M | -38.60M | -21.26M | -8.40M |
Bel Fuse Inc Technical Analysis
Positive
234.40
Price Trends
198.75
Positive
175.13
Positive
142.80
Positive
Market Momentum
10.44
Positive
62.39
Neutral
50.41
Neutral
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 234.4 is above the 20-day moving average (MA) of 223.02, above the 50-day MA of 198.75, and above the 200-day MA of 142.80, indicating a bullish trend. The MACD of 10.44 indicates Positive momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 50.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BELFB.
Bel Fuse Inc Risk Analysis
Bel Fuse Inc disclosed 29 risk factors in its most recent earnings report. Bel Fuse Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bel Fuse Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.93B | 46.56 | 15.66% | 0.16% | 23.70% | 14.78% | |
76 Outperform | $2.93B | 43.30 | 16.40% | 0.15% | 23.70% | 14.78% | |
68 Neutral | $1.54B | 23.84 | 10.98% | 0.36% | 3.70% | 1.68% | |
68 Neutral | $1.93B | -32.35 | -5.34% | ― | -4.87% | -235.48% | |
66 Neutral | $2.13B | 85.00 | 3.37% | 1.44% | -2.93% | -40.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $309.47M | -4.94 | -8.87% | 5.93% | -9.51% | 29.57% |
* Technology Sector Average
BELFB
Bel Fuse Inc
234.67
151.54
182.29%
BHE
Benchmark Electronics
60.36
20.50
51.43%
CTS
CTS
53.22
8.15
18.08%
MEI
Methode Electronics
9.09
-1.54
-14.48%
ROG
Rogers
109.77
24.52
28.76%
BELFA
Bel Fuse
217.16
131.58
153.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.