Befesa S.A. (BFSA) AI Stock Analysis

• Market Cap: €1.13B
• Dividend Yield: 2.26%
• Average Volume (3M): 48.15K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.09
• Revenue Growth: 2.80%
• EPS Growth: 22.69%
• Country: DE
• Employees: 1,835
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.54
• Shares Outstanding: 39,999,996
• 10 Day Avg. Volume: 59,264
• 30 Day Avg. Volume: 48,148
• PEG Ratio: -1.32
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 7.33
• 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: €36.05
• Price Target Upside: 27.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: €29.00 ▲(2.47% Upside)

Befesa S.A.'s overall stock score is primarily influenced by its solid financial performance, despite operational challenges. The technical analysis suggests a neutral market sentiment, while the valuation indicates reasonable pricing with a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth from 2020 to 2024 indicates strong market demand and effective business strategies, supporting long-term sustainability.

Cash Generation

Stable cash flows and positive free cash flow highlight Befesa's ability to generate cash effectively, ensuring financial flexibility and operational resilience.

Balance Sheet Health

A stable balance sheet with a moderate debt-to-equity ratio provides a strong financial foundation, supporting long-term growth and investment capacity.

Negative Factors

Operational Challenges

Negative EBIT margin indicates operational inefficiencies, which could hinder profitability and require strategic adjustments to improve performance.

Profitability Decline

A declining ROE suggests reduced efficiency in generating profits from equity, potentially impacting investor confidence and long-term returns.

Inconsistent Cash Flow Growth

Inconsistent free cash flow growth can lead to unpredictability in financial planning and investment, affecting long-term strategic initiatives.

Befesa S.A. Business Overview & Revenue Model

Company Description

Befesa S.A. provides environmental recycling services to the steel and aluminum industries in European, Asian, and North American markets. It operates through two segments, Steel Dust Recycling Services and Aluminium Salt Slags Recycling Services. The Steel Dust Recycling Services segment collects and recycles steel dust and other steel residues generated in the production of crude, stainless, and galvanized steel. The Aluminium Salt Slags Recycling Services segment recycles salt slags; spent pot linings, a hazardous residue generated by primary aluminum producers; and recovers and sells salt, aluminum concentrate, and aluminum oxides. This segment also collects and recycles aluminum scrap and other aluminum residues, such as aluminum dross, shavings, and cuttings; and produces secondary aluminum alloys for automotive and construction industries. The company also offers logistics and waelz oxide treatment services; develops projects and technology; and operates as a marketing company. Befesa S.A. was founded in 1987 and is based in Luxembourg City, Luxembourg.

How the Company Makes Money

Befesa generates revenue through multiple streams, primarily from its recycling services in the steel and aluminum sectors. The company earns money by processing and recycling steel dust and aluminum scrap, transforming these materials into high-quality secondary raw materials that can be sold back to the market. Key revenue streams include sales from recycled aluminum and steel products, service fees for waste management, and long-term contracts with major industrial clients. Additionally, Befesa benefits from partnerships with steel and aluminum producers, allowing them to secure a stable supply of recyclable materials. Factors contributing to its earnings include rising demand for sustainable materials, regulatory pressures on waste management, and the company's ability to innovate in the recycling processes to improve efficiency and cost-effectiveness.

Befesa S.A. Financial Statement Overview

Summary

Befesa S.A. demonstrates solid revenue growth and strong cash generation capabilities. However, operational challenges are evident with a negative EBIT margin in the TTM period. The balance sheet remains robust, providing a sound financial foundation, but the company should focus on improving operational efficiency to enhance EBIT margins.

Income Statement

Befesa S.A. shows a healthy revenue growth trajectory, with revenue increasing consistently from 2020 to 2024. However, the TTM EBIT margin is negative, indicating operational challenges. The gross profit margin has decreased in the TTM period, but the net profit margin remains positive, suggesting some resilience. EBITDA margins are strong, highlighting efficient cash generation from operations.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, though it increased slightly in the TTM period. Return on Equity (ROE) is reasonable but has decreased compared to prior years, indicating a decline in profitability relative to equity. The equity ratio remains solid, ensuring a strong asset base.

Cash Flow

Cash flows show stability, with positive free cash flow in the TTM period despite a decrease from the previous year. The operating cash flow to net income ratio is strong, indicating effective cash conversion from profits. However, free cash flow growth is inconsistent, suggesting variability in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.24B	1.18B	1.14B	821.61M	604.33M
Gross Profit	212.81M	514.17M	456.20M	569.11M	465.10M	350.58M
EBITDA	218.99M	195.66M	178.39M	223.15M	188.54M	117.22M
Net Income	45.01M	50.82M	57.97M	106.22M	99.75M	47.61M
Balance Sheet
Total Assets	1.92B	1.98B	1.95B	1.98B	1.80B	1.10B
Cash, Cash Equivalents and Short-Term Investments	96.50M	102.52M	106.69M	161.75M	224.09M	154.56M
Total Debt	697.59M	721.48M	710.77M	710.77M	694.73M	548.22M
Total Liabilities	1.08B	1.13B	1.07B	1.16B	1.16B	772.82M
Stockholders Equity	829.87M	830.22M	823.53M	805.10M	622.84M	317.29M
Cash Flow
Free Cash Flow	40.68M	113.25M	12.51M	30.68M	40.22M	37.72M
Operating Cash Flow	151.69M	191.82M	117.32M	137.33M	117.90M	92.54M
Investing Cash Flow	-62.35M	-78.57M	-90.85M	-151.40M	-449.47M	-53.88M
Financing Cash Flow	-76.28M	-117.27M	-80.24M	-46.89M	401.77M	-9.16M

Befesa S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 28.3 is above the 20-day moving average (MA) of 27.36, above the 50-day MA of 27.19, and above the 200-day MA of 24.81, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 54.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB	74 Outperform	1.57B	13.54	10.81%	2.88%	4.20%	-20.71%
KSB3	72 Outperform	1.57B	13.15	10.81%	3.05%	4.20%	-20.71%
DEZ	66 Neutral	1.42B	54.14	2.95%	1.87%	1.57%	-70.53%
BFSA	64 Neutral	€1.13B	15.71	8.71%	2.26%	2.80%	22.69%
JEN	63 Neutral	1.01B	13.07	8.08%	2.15%	-2.59%	-3.21%
SZG	47 Neutral	1.46B	-3.10	-9.69%	0.83%	-7.50%	-3837.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%