Bel Fuse Inc (BELFB) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: 0.19%
• Average Volume (3M): 161.43K
• Price to Earnings (P/E): 35.1
• Beta (1Y): 1.28
• Revenue Growth: 6.08%
• EPS Growth: -23.58%
• Country: US
• Employees: 5,370
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.67
• Shares Outstanding: 10,548,254
• 10 Day Avg. Volume: 139,223
• 30 Day Avg. Volume: 161,427
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 15.77
• 1Y Price Target: $120.33
• Price Target Upside: -16.37% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $159.00 ▲(10.51% Upside)

Bel Fuse Inc. receives a strong overall score driven by robust financial performance and positive earnings call insights. The stock's technical indicators show bullish momentum, though overbought conditions suggest caution. Valuation metrics indicate the stock may be expensive, but the company's growth prospects and operational efficiency provide a solid foundation.

Positive Factors

Acquisitions

The acquisition of Enercon is seen as a well-timed expansion in the defense market at a time when global defense budgets are rising.

Earnings

Bel delivered an impressive beat-and-raise Q2, as signs of improvement in the networking and the distribution channel gain momentum while the A&D business continues to see strong demand.

Financial Performance

BELFB has undergone an impressive transformation that has resulted in EBITDA margin expansion, above industry revenue growth, and being positioned to capitalize on secular tailwinds from electrification.

Negative Factors

Revenue Guidance

Q2 revenue guidance at the midpoint of the range was ~8% below consensus, with much of that attributable to conservative assumptions for possible downside from China-related tariffs and lower turns business.

Tariffs

Mgmt sized the tariff exposure from China on products shipped directly into the U.S. at about 10% of total sales and plans to take various actions to mitigate the tariffs.

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 design, manufacture, and sale of electronic components and solutions. The company's key revenue streams include sales from its product lines: power solutions, magnetics, connectors, and circuit protection devices. Bel Fuse's extensive global distribution network and strategic partnerships with original equipment manufacturers (OEMs) and contract manufacturers further enhance its market reach and sales potential. The company's earnings are significantly influenced by technological advancements, industry demand for electronic components, and its ability to innovate and meet customer requirements.

Bel Fuse Inc Financial Statement Overview

Summary

Bel Fuse Inc. shows strong financial performance with improved profitability, efficient debt management, and robust cash flow generation. Despite slight revenue fluctuations, the company's solid balance sheet and cash flow management position it well within the industry.

Income Statement

Bel Fuse Inc. demonstrates strong profitability with a consistent increase in gross profit margin from 29.2% in 2021 to 37.8% in TTM (Trailing-Twelve-Months). The EBIT margin improved significantly from 1.6% in 2021 to 13.2% in the TTM, reflecting enhanced operational efficiency. Net profit margin also saw a favorable rise from 4.6% in 2021 to 8.6% in the TTM. Though revenue dipped in 2023, the overall trend since 2020 shows a robust growth trajectory.

Balance Sheet

The balance sheet reveals a well-capitalized structure with an equity ratio of 51.1% in the TTM, indicating strong financial health. The debt-to-equity ratio decreased from 0.64 in 2021 to 0.57 in the TTM, showcasing effective debt management. Return on equity improved from 11.9% in 2021 to 10.5% in the TTM, although slightly less than the previous year, still reflects a solid return for shareholders.

Cash Flow

Bel Fuse Inc.'s cash flow statements indicate a positive free cash flow to net income ratio of 0.94 in the TTM, underscoring efficient cash generation capabilities. Operating cash flow to net income ratio stands at 1.26, reflecting strong cash flow management. Despite fluctuations in investing and financing cash flows, the company has maintained consistent free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	594.03M	534.79M	639.81M	654.23M	543.49M	465.77M
Gross Profit	224.79M	202.36M	215.85M	183.45M	134.38M	119.73M
EBITDA	95.62M	82.34M	99.46M	84.79M	42.19M	27.96M
Net Income	51.02M	40.96M	73.83M	52.69M	24.82M	12.79M
Balance Sheet
Total Assets	950.58M	949.79M	571.63M	560.47M	511.85M	453.87M
Cash, Cash Equivalents and Short-Term Investments	59.28M	69.20M	126.92M	70.27M	61.76M	84.94M
Total Debt	275.07M	318.21M	82.59M	116.61M	134.05M	130.24M
Total Liabilities	464.87M	508.63M	231.07M	298.12M	303.10M	268.07M
Stockholders Equity	485.71M	360.58M	340.56M	262.35M	208.74M	185.80M
Cash Flow
Free Cash Flow	48.04M	59.96M	96.22M	31.43M	-4.76M	40.63M
Operating Cash Flow	64.54M	74.06M	108.35M	40.26M	4.63M	46.11M
Investing Cash Flow	-273.62M	-297.89M	-53.53M	-7.00M	-18.88M	-1.51M
Financing Cash Flow	182.27M	206.26M	-38.60M	-21.26M	-8.40M	-32.14M

Bel Fuse Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 143.88 is above the 20-day moving average (MA) of 134.55, above the 50-day MA of 119.75, and above the 200-day MA of 88.46, indicating a bullish trend. The MACD of 5.85 indicates Positive momentum. The RSI at 70.13 is Negative, neither overbought nor oversold. The STOCH value of 85.92 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
BELFB	77 Outperform	$1.76B	35.13	13.40%	0.19%	6.08%	-23.58%
BELFA	76 Outperform	$1.77B	28.88	13.40%	0.20%	6.08%	-23.93%
CTS	76 Outperform	$1.26B	20.11	11.96%	0.38%	1.16%	19.81%
BHE	69 Neutral	$1.45B	38.51	3.49%	1.68%	-5.95%	-43.46%
ROG	62 Neutral	$1.44B	72.21	-5.25%	―	-7.61%	-212.91%
Sector *	61 Neutral	$35.55B	8.88	-11.05%	1.87%	8.55%	-8.14%
MEI	52 Neutral	$247.15M	―	-8.58%	6.89%	-5.96%	49.33%