company background image
BFSA

BefesaXTRA:BFSA Stock Report

Last Price

€64.40

Market Cap

€2.6b

7D

-5.6%

1Y

11.2%

Updated

21 Jan, 2022

Data

Company Financials +
BFSA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health3/6
Dividends3/6

BFSA Stock Overview

Befesa S.A. provides environmental recycling services to the steel and aluminum industries in European and Asian markets.

Befesa Competitors

Veolia Environnement

ENXTPA:VIE

€21.9b

Norsk Hydro

OB:NHY

kr146.3b

Suez

ENXTPA:SEV

€12.7b

Shikun & Binui

TASE:SKBN

₪8.9b

Price History & Performance

Summary of all time highs, changes and price drops for Befesa
Historical stock prices
Current Share Price€64.40
52 Week High€72.90
52 Week Low€51.20
Beta1.11
1 Month Change-1.38%
3 Month Change-7.74%
1 Year Change11.23%
3 Year Change75.96%
5 Year Changen/a
Change since IPO102.71%

Recent News & Updates

Jan 10
These 4 Measures Indicate That Befesa (ETR:BFSA) Is Using Debt Reasonably Well

These 4 Measures Indicate That Befesa (ETR:BFSA) Is Using Debt Reasonably Well

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Oct 27
What Is Befesa S.A.'s (ETR:BFSA) Share Price Doing?

What Is Befesa S.A.'s (ETR:BFSA) Share Price Doing?

While Befesa S.A. ( ETR:BFSA ) might not be the most widely known stock at the moment, it saw a decent share price...

Oct 10
Here's Why Befesa (ETR:BFSA) Can Manage Its Debt Responsibly

Here's Why Befesa (ETR:BFSA) Can Manage Its Debt Responsibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 30
Befesa S.A. (ETR:BFSA) Shares Could Be 29% Below Their Intrinsic Value Estimate

Befesa S.A. (ETR:BFSA) Shares Could Be 29% Below Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Befesa S.A. ( ETR:BFSA...

Shareholder Returns

BFSADE Commercial ServicesDE Market
7D-5.6%-3.5%-2.0%
1Y11.2%4.8%8.1%

Return vs Industry: BFSA exceeded the German Commercial Services industry which returned 6.6% over the past year.

Return vs Market: BFSA exceeded the German Market which returned 10% over the past year.

Price Volatility

Is BFSA's price volatile compared to industry and market?
BFSA volatility
BFSA Average Weekly Movement3.7%
Commercial Services Industry Average Movement5.1%
Market Average Movement5.0%
10% most volatile stocks in DE Market9.7%
10% least volatile stocks in DE Market2.7%

Stable Share Price: BFSA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BFSA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19871,537Javier Molina Monteshttps://www.befesa.com

Befesa S.A. provides environmental recycling services to the steel and aluminum industries in European and Asian 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.

Befesa Fundamentals Summary

How do Befesa's earnings and revenue compare to its market cap?
BFSA fundamental statistics
Market Cap€2.58b
Earnings (TTM)€77.71m
Revenue (TTM)€732.17m

33.2x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BFSA income statement (TTM)
Revenue€732.17m
Cost of Revenue€413.17m
Gross Profit€319.01m
Expenses€241.30m
Earnings€77.71m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.94
Gross Margin43.57%
Net Profit Margin10.61%
Debt/Equity Ratio105.9%

How did BFSA perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

54%

Payout Ratio

Valuation

Is Befesa undervalued compared to its fair value and its price relative to the market?

43.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFSA (€64.4) is trading below our estimate of fair value (€113.33)

Significantly Below Fair Value: BFSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BFSA is poor value based on its PE Ratio (33.2x) compared to the German Commercial Services industry average (17.5x).

PE vs Market: BFSA is poor value based on its PE Ratio (33.2x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: BFSA is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: BFSA is overvalued based on its PB Ratio (4.2x) compared to the DE Commercial Services industry average (3.1x).


Future Growth

How is Befesa forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFSA's forecast earnings growth (24% per year) is above the savings rate (-0.01%).

Earnings vs Market: BFSA's earnings (24% per year) are forecast to grow faster than the German market (10.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BFSA's revenue (7.6% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: BFSA's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BFSA's Return on Equity is forecast to be low in 3 years time (18.3%).


Past Performance

How has Befesa performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BFSA has high quality earnings.

Growing Profit Margin: BFSA's current net profit margins (10.6%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: BFSA has become profitable over the past 5 years, growing earnings by 36.3% per year.

Accelerating Growth: BFSA's earnings growth over the past year (45.5%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: BFSA earnings growth over the past year (45.5%) exceeded the Commercial Services industry 29.5%.


Return on Equity

High ROE: BFSA's Return on Equity (13.1%) is considered low.


Financial Health

How is Befesa's financial position?


Financial Position Analysis

Short Term Liabilities: BFSA's short term assets (€382.2M) exceed its short term liabilities (€276.2M).

Long Term Liabilities: BFSA's short term assets (€382.2M) do not cover its long term liabilities (€782.3M).


Debt to Equity History and Analysis

Debt Level: BFSA's net debt to equity ratio (73.7%) is considered high.

Reducing Debt: BFSA's debt to equity ratio has reduced from 319.6% to 105.9% over the past 5 years.

Debt Coverage: BFSA's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: BFSA's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet


Dividend

What is Befesa current dividend yield, its reliability and sustainability?

1.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BFSA's dividend (1.82%) is higher than the bottom 25% of dividend payers in the German market (1%).

High Dividend: BFSA's dividend (1.82%) is low compared to the top 25% of dividend payers in the German market (3.33%).


Stability and Growth of Payments

Stable Dividend: BFSA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BFSA's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), BFSA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BFSA's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.0yrs

Average management tenure


CEO

Javier Molina Montes (62 yo)

22yrs

Tenure

€2,599,227

Compensation

Mr. Javier Molina Montes has been Chief Executive Officer of Befesa S.A. since 2000. Mr. Molina Montes has been the Chief Executive Officer at Befesa Medio Ambiente S.L. since July 2000 and serves as its P...


CEO Compensation Analysis

Compensation vs Market: Javier's total compensation ($USD2.95M) is above average for companies of similar size in the German market ($USD2.03M).

Compensation vs Earnings: Javier's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BFSA's management team is seasoned and experienced (15 years average tenure).


Board Members

Experienced Board: BFSA's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.4%.


Top Shareholders

Company Information

Befesa S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Befesa S.A.
  • Ticker: BFSA
  • Exchange: XTRA
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Implied Market Cap: €2.576b
  • Shares outstanding: 40.00m
  • Website: https://www.befesa.com

Number of Employees


Location

  • Befesa S.A.
  • 46, Boulevard Grande-Duchesse Charlotte
  • Luxembourg City
  • 1330
  • Luxembourg

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:28
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.