Befesa S.A. (DE:BFSA)
XETRA:BFSA
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Befesa S.A.
(XETRA:BFSA)
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Rating:61Neutral
Price Target:
€34.00
▼(-3.68% Downside)
Action:ReiteratedDate:05/01/26
The score is primarily held back by financial performance trends—especially the sharp TTM revenue decline, lower margin profile versus peak years, and only average cash conversion with meaningful leverage. Offsetting factors include reasonable valuation (P/E ~13.9 and ~2% yield), a medium-term uptrend in technicals despite near-term consolidation, and a generally constructive earnings-call outlook with reaffirmed EBITDA guidance and expected deleveraging, balanced by ongoing end-market and regional headwinds.
Positive Factors
Resilient service+product business model
Befesa’s dual revenue streams—fees for hazardous-residue treatment plus sale of recovered metals—create durable cash generation and customer stickiness. Long-term industrial contracts with steel and aluminum producers provide predictable volumes and align incentives across processing and offtake channels.
Negative Factors
Significant TTM revenue decline
A near 30% TTM revenue drop signals persistent demand weakness or lower recoverable-metal economics. Over several quarters this reduces operating leverage, constrains margins, and limits cash flow available for capex and deleveraging, heightening cyclical downside if end-market recovery lags.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient service+product business model
Befesa’s dual revenue streams—fees for hazardous-residue treatment plus sale of recovered metals—create durable cash generation and customer stickiness. Long-term industrial contracts with steel and aluminum producers provide predictable volumes and align incentives across processing and offtake channels.
Read all positive factors
Befesa S.A. (BFSA) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.31B
Dividend Yield2.24%
Average Volume (3M)62.78K
Price to Earnings (P/E)14.0
Beta (1Y)1.33
Revenue Growth-7.17%
EPS Growth37.66%
CountryDE
Employees1,835
SectorIndustrials
Sector Strength72
IndustryWaste Management
Share Statistics
EPS (TTM)0.45
Shares Outstanding39,999,996
10 Day Avg. Volume72,927
30 Day Avg. Volume62,780
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)1.00
Price to Sales (P/S)0.67
P/FCF Ratio7.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€39.00Price Target Upside10.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.56
Revenue Forecast (FY)€1.32B
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....
How the Company Makes Money
Befesa makes money primarily through a combination of (a) service revenues for treating hazardous residues and (b) product revenues from selling recovered materials produced by its recycling processes.
1) Zinc recovery from steelmaking dust (EAF ...
Befesa S.A. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: EBITDA growth (+14%), margin expansion, record operating cash flow (+10%), successful deleveraging (net debt down 11%, leverage 2.27x) and strong commodity hedging/visibility. Key growth projects (Palmerton completed, Bernburg underway) and a disciplined CapEx and dividend approach support the constructive outlook. Headwinds remain in the aluminium segments, China utilization and inflationary/energy costs, but management expects recovery in secondary aluminium and higher treatment charges in 2026. On balance, the positive achievements and financial improvements outweigh the localized challenges.Positive Updates
Strong overall profitability and margin expansion
Adjusted EBITDA for FY2025 was €243 million, up 14% year‑on‑year, with EBITDA margin improving to 21% from 17% in FY2024, reflecting operational efficiency and disciplined cost management.
Negative Updates
Aluminum salt slag and secondary aluminium weakness
Aluminum salt slag EBITDA declined to €32 million in 2025, down 27% YoY (from €43m), driven by lower aluminum metal margins and higher operating/energy costs. Secondary aluminium remains under pressure with tight metal margins and low production linked to the weak automotive market.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong overall profitability and margin expansion
Adjusted EBITDA for FY2025 was €243 million, up 14% year‑on‑year, with EBITDA margin improving to 21% from 17% in FY2024, reflecting operational efficiency and disciplined cost management.
Read all positive updates
Company Guidance
Befesa expects 2026 to be another year of earnings growth, strong cash generation and continued deleveraging with net leverage targeted around ~2.0x by year‑end 2026 (below 2x thereafter). Total CapEx will be below EUR 70m in 2026, with regular maintenance CapEx roughly EUR 40–50m (management cited ~EUR45m) and the remainder as growth CapEx focused on Bernburg (permits secured, construction started Aug‑25, 12‑month build + 6‑month ramp‑up in H2‑26). Zinc hedges provide multi‑year visibility (average 2026 hedge ≈ EUR 2,990/t, 2027 hedged at $3,000/t and hedges extended into H1‑2028 at $3,100/t); treatment charges are expected to recover from $80/t in 2025 toward ~$100–130/t in 2026. Management flags moderate energy cost movements (coke normalizing, Q4 gas ~EUR45/MWh; Q4 coke ≈ EUR152/t), stable salt‑slag volumes with ~89% utilization, secondary‑Al utilization ~75% with gradual margin improvement, incremental U.S. steel‑dust volumes of ~60–70k t in 2026 and a target to ramp U.S. utilization from <70% today to ~90% by 2028, plus a proposed dividend of EUR 40m (EUR 1.00/sh, 50% payout, +37% vs 2025).Befesa S.A. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 868.72M | 1.24B | 1.18B | 1.14B | 821.61M | 604.33M |
| Gross Profit | 397.84M | 514.17M | 456.20M | 569.11M | 465.10M | 350.58M |
| EBITDA | 161.02M | 195.66M | 184.52M | 223.15M | 180.47M | 117.22M |
| Net Income | 62.82M | 50.82M | 57.97M | 106.22M | 99.75M | 47.61M |
Balance Sheet | ||||||
| Total Assets | 1.93B | 1.98B | 1.95B | 1.98B | 1.80B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 144.67M | 102.52M | 106.69M | 161.75M | 224.09M | 154.56M |
| Total Debt | 52.49M | 721.48M | 710.77M | 710.77M | 694.73M | 548.22M |
| Total Liabilities | 1.09B | 1.13B | 1.07B | 1.16B | 1.16B | 772.82M |
| Stockholders Equity | 817.27M | 830.22M | 823.53M | 805.10M | 622.84M | 317.29M |
Cash Flow | ||||||
| Free Cash Flow | 44.86M | 113.25M | 12.51M | 30.68M | 40.22M | 37.72M |
| Operating Cash Flow | 104.49M | 191.82M | 117.32M | 137.33M | 117.90M | 92.54M |
| Investing Cash Flow | -61.03M | -78.57M | -90.85M | -151.40M | -449.47M | -53.88M |
| Financing Cash Flow | -54.92M | -117.27M | -80.24M | -46.89M | 401.77M | -9.16M |
Befesa S.A. Technical Analysis
Positive
35.30
Price Trends
31.37
Positive
30.51
Positive
29.26
Positive
Market Momentum
1.24
Negative
70.89
Negative
93.79
Negative
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 35.3 is above the 20-day moving average (MA) of 30.90, above the 50-day MA of 31.37, and above the 200-day MA of 29.26, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 70.89 is Negative, neither overbought nor oversold. The STOCH value of 93.79 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | €9.43B | 22.78 | 17.54% | 2.01% | 1.35% | 10.41% | |
66 Neutral | €1.69B | 11.99 | 0.33% | 2.76% | 2.34% | 19.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | €1.31B | 14.05 | 7.41% | 2.24% | -7.17% | 37.66% | |
56 Neutral | €1.46B | 7.78 | -3.19% | 3.12% | -2.86% | 101.14% | |
54 Neutral | €25.83M | -1.99 | -20.30% | ― | 1.31% | -60.90% |
* Industrials Sector Average
DE:BFSA
Befesa S.A.
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27.32%
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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.