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Befesa S.A.
(XETRA:BFSA)
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Rating:70Outperform
Price Target:
€38.00
▲(8.26% Upside)
Action:Upgraded
Date:08/03/26
The score is driven primarily by solid and improving operating performance with a manageable (but still meaningful) leverage profile, supported by a constructive technical uptrend. Valuation is reasonable with a moderate P/E and a supportive dividend yield, while the latest earnings call was broadly positive on guidance and deleveraging but flagged ongoing macro/FX and near-term cash-flow timing headwinds.
Positive Factors
Margin expansion & solid profitability
Sustained EBITDA and EBIT margin expansion reflects durable operational strength, especially in steel dust where processing yields high metal recoveries. Higher structural margins improve cash generation capacity and resilience to cyclical metal prices, supporting reinvestment and shareholder returns over coming quarters.
Negative Factors
High absolute debt load
While leverage ratios have improved, a large gross debt stock increases refinancing and interest-rate exposure. In a downturn or if margins slip, the absolute debt burden could constrain capital allocation, require tighter liquidity management, and limit strategic optionality over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion & solid profitability
Sustained EBITDA and EBIT margin expansion reflects durable operational strength, especially in steel dust where processing yields high metal recoveries. Higher structural margins improve cash generation capacity and resilience to cyclical metal prices, supporting reinvestment and shareholder returns over coming quarters.
Read all positive factors
Befesa S.A. (BFSA) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.40B
Dividend Yield2.86%
Average Volume (3M)62.78K
Price to Earnings (P/E)16.3
Beta (1Y)1.31
Revenue Growth-4.02%
EPS Growth20.75%
CountryDE
Employees1,763
SectorIndustrials
Sector Strength72
IndustryEnvironmental Services
Share Statistics
EPS (TTM)2.14
Shares Outstanding39,999,996
10 Day Avg. Volume72,927
30 Day Avg. Volume62,780
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.47
Price to Sales (P/S)1.00
P/FCF Ratio11.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€42.25Price Target Upside20.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.58
Revenue Forecast (FY)€1.26B
Befesa S.A. Business Overview & Revenue Model
Company Description
Befesa S.A. offers environmental recycling services to the steel and aluminum industries in the European, Asian, and North American markets. It operates in two segments, Steel Dust Recycling Services and Aluminium Salt Slags Recycling Services. Th...
How the Company Makes Money
Befesa makes money by providing specialized waste treatment and recycling services and by selling recovered materials from those processes. Its core revenue streams are typically organized around two industrial recycling activities: (1) Steel dust...
Befesa S.A. Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: strong H1 EBITDA growth, margin expansion, solid cash generation and continued deleveraging were highlighted, supported by favorable zinc prices and U.S. volume gains. Management reaffirmed full‑year guidance and provided visibility via an extended hedging book and disciplined capital allocation. Headwinds include persistent inflationary pressures (notably fuel and natural gas), FX impacts, short‑term working capital drag from WOX inventory, and continued weakness in secondary aluminum and certain Asian markets. Overall, positive momentum is evident, but the company remains exposed to macro/commodity/FX risks and near‑term capex timing effects.Positive Updates
Group Adjusted EBITDA Growth
Total adjusted EBITDA of EUR 124 million in H1 2026, up 11% year‑on‑year; group EBITDA margin improved to 22% in Q2 2026 from 19% in Q2 2025 (approx. +300 bps).
Negative Updates
Secondary Aluminium Weakness and Scrap Supply Issues
Secondary aluminum volumes remain under pressure due to record‑high alloy scrap leakage/export from Europe and weak automotive demand; revenues and EBITDA roughly flat YoY despite metal margin improvements—timing and contractual lags impacting margin pass‑through.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Adjusted EBITDA Growth
Total adjusted EBITDA of EUR 124 million in H1 2026, up 11% year‑on‑year; group EBITDA margin improved to 22% in Q2 2026 from 19% in Q2 2025 (approx. +300 bps).
Read all positive updates
Company Guidance
Befesa reaffirmed 2026 guidance of adjusted EBITDA EUR 250–270m (growth 3–11%) and total CapEx ~EUR 70m (c. EUR 45m maintenance, remainder for Bernburg), while targeting net leverage around/below 2x by year-end (net leverage 2.18 at June 2026; net debt EUR 555m; gross debt EUR 690m). Confidence is supported by H1 results: adjusted EBITDA EUR 124m (+11% YoY), steel dust EBITDA EUR 104m (27% margin, +8% YoY), operating cash flow EUR 71m (+10%), H1 CapEx EUR 46m (maintenance EUR 31m; growth EUR 15m) and H1 cash on hand EUR 134m plus EUR 100m undrawn RCF (~EUR 234m liquidity). Market and commercial assumptions include average LME zinc H1 $3,353/t (+22% YoY; Q2 $3,463/t), treatment charge $85/t, a ~30‑month hedge book extended to Jan‑2029 (record ~$3,100/t for 2027–28; 2026 hedge ~USD 2,990/t), and expected steel dust utilization ~76–77% for the year; Bernburg ( +60,000 t capacity to 200,000 t) is on track to start end‑Aug with most contribution in Q4 (incremental EBITDA c. EUR 6–7m), and the dividend policy remains 40–50% (EUR 40m paid in July = EUR 1/sh).Befesa S.A. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.17B | 1.18B | 1.24B | 1.18B | 1.14B | 821.61M |
| Gross Profit | 501.70M | 161.16M | 514.17M | 456.20M | 569.11M | 465.10M |
| EBITDA | 254.48M | 225.08M | 195.66M | 184.52M | 223.15M | 180.47M |
| Net Income | 85.48M | 80.50M | 50.82M | 57.97M | 106.22M | 99.75M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 1.87B | 1.98B | 1.95B | 1.98B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 134.49M | 142.60M | 102.52M | 106.69M | 161.75M | 224.09M |
| Total Debt | 689.68M | 690.83M | 721.48M | 710.77M | 710.77M | 694.73M |
| Total Liabilities | 1.22B | 1.06B | 1.13B | 1.07B | 1.16B | 1.16B |
| Stockholders Equity | 730.90M | 802.56M | 830.22M | 823.53M | 805.10M | 622.84M |
Cash Flow | ||||||
| Free Cash Flow | 113.61M | 104.39M | 113.25M | 12.51M | 30.68M | 40.22M |
| Operating Cash Flow | 196.23M | 178.22M | 191.82M | 117.32M | 137.33M | 117.90M |
| Investing Cash Flow | -85.12M | -76.12M | -78.57M | -90.85M | -151.40M | -449.47M |
| Financing Cash Flow | -69.30M | -57.27M | -117.27M | -80.24M | -46.89M | 401.77M |
Befesa S.A. Technical Analysis
Positive
35.10
Price Trends
33.51
Positive
32.53
Positive
30.82
Positive
Market Momentum
0.72
Negative
62.76
Neutral
76.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BFSA, the sentiment is Positive. The current price of 35.1 is above the 20-day moving average (MA) of 34.31, above the 50-day MA of 33.51, and above the 200-day MA of 30.82, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 76.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BFSA.
Befesa S.A. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €1.40B | 16.33 | 10.12% | 2.85% | -4.02% | 20.75% | |
66 Neutral | €9.96B | 23.99 | 17.42% | 2.05% | 1.30% | 10.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | €1.56B | 51.92 | 16.47% | 2.80% | 2.34% | 19.31% | |
57 Neutral | €1.23B | 6.22 | -3.44% | 4.40% | -2.35% | 89.53% | |
44 Neutral | €18.06M | -6.23 | -21.21% | ― | 1.02% | -6.21% |
* Industrials Sector Average
DE:BFSA
Befesa S.A.
35.50
9.66
37.37%
DE:DUE
Durr AG
18.48
-3.04
-14.13%
DE:G1A
GEA Group AG
62.95
0.55
0.88%
DE:KSB
KSB AG
934.00
16.40
1.79%
DE:ZEF
ZhongDe Waste Technology
0.02
-0.38
-95.00%
DE:WAH
Wolftank-Adisa Holding AG
3.58
-4.32
-54.68%
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.