XTRA:BFSA

Stock Analysis Report

Executive Summary

Befesa S.A., a services company, offers waste management solutions.

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Befesa's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

BFSA

1.1%

DE Commercial Services

1.7%

DE Market


1 Year Return

-11.8%

BFSA

-11.1%

DE Commercial Services

7.2%

DE Market

Return vs Industry: BFSA underperformed the German Commercial Services industry which returned -11.1% over the past year.

Return vs Market: BFSA underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

BFSAIndustryMarket
7 Day0.8%1.1%1.7%
30 Day3.2%1.3%2.4%
90 Day2.1%0.9%2.3%
1 Year-8.3%-11.8%-7.9%-11.1%10.6%7.2%
3 Yearn/a4.2%-4.8%18.4%8.1%
5 Yearn/a-4.4%-17.8%42.3%22.9%

Price Volatility Vs. Market

How volatile is Befesa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFSA (€33.4) is trading below our estimate of fair value (€55.93)

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


Price To Earnings Ratio

PE vs Industry: BFSA is good value based on its PE Ratio (12.7x) compared to the Commercial Services industry average (16.5x).

PE vs Market: BFSA is good value based on its PE Ratio (12.7x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: BFSA is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BFSA is overvalued based on its PB Ratio (3.8x) compared to the DE Commercial Services industry average (2.6x).


Next Steps

Future Growth

How is Befesa forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFSA's forecast earnings growth (6.8% per year) is above the savings rate (0.2%).

Earnings vs Market: BFSA's earnings (6.8% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: BFSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: BFSA's revenue (4.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BFSA's revenue (4.2% 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 high in 3 years time (21.7%)


Next Steps

Past Performance

How has Befesa performed over the past 5 years?

56.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BFSA's earnings have grown significantly by 56.6% per year over the past 5 years.

Accelerating Growth: BFSA's earnings growth over the past year (92%) exceeds its 5-year average (56.6% per year).

Earnings vs Industry: BFSA earnings growth over the past year (92%) exceeded the Commercial Services industry 6.4%.


Return on Equity

High ROE: Whilst BFSA's Return on Equity (30.54%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BFSA has a higher Return on Assets than the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: BFSA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Befesa's financial position?


Financial Position Analysis

Short Term Liabilities: BFSA's short term assets (€310.9M) exceeds its short term liabilities (€189.0M)

Long Term Liabilities: BFSA's short term assets (310.9M) do not cover its long term liabilities (607.9M)


Debt to Equity History and Analysis

Debt Level: BFSA's debt to equity ratio (171.5%) is considered high

Reducing Debt: BFSA's debt to equity ratio has reduced from 276.8% to 171.5% over the past 5 years.

Debt Coverage: BFSA's debt is well covered by operating cash flow (21.9%).

Interest Coverage: BFSA's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

Inventory Level: BFSA has a high level of physical assets or inventory.

Debt Coverage by Assets: BFSA's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

3.95%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BFSA's dividend (3.95%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: BFSA's dividend (3.95%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: Whilst dividend payments have been stable, BFSA has been paying a dividend for less than 10 years.

Growing Dividend: BFSA's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.3%), 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 (49.4% payout ratio).


Next Steps

Management

What is the CEO of Befesa's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Javier Molina Montes (59yo)

2yrs

Tenure

0

Mr. Javier Molina Montes has been Chief Executive Officer of Befesa S.A. since October 18, 2017. Mr. Molina Montes has been the Chief Executive Officer at Befesa Medio Ambiente S.L. since July 2000 and ser ...


Management Age and Tenure

5.8yrs

Average Tenure

52yo

Average Age

Experienced Management: BFSA's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

64yo

Average Age

Experienced Board: BFSA's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Javier Molina Montes (59yo)

    CEO & Executive Director

    • Tenure: 2yrs
  • Asier Zarraonandia Ayo (52yo)

    VP of Steel Dust Recycling Services Business Unit & Executive Director

    • Tenure: 0yrs
  • Wolf Lehmann (48yo)

    CFO & Executive Director

    • Tenure: 2yrs
  • Rafael Pérez

    Director of Investor Relations & Strategy

    • Tenure: 0yrs
  • Birke Fuchs

    Board Secretary & General Counsel

    • Tenure: 0yrs

Board Members

  • Santiago Zaldumbide (77yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
  • Romeo Kreinberg (68yo)

    Independent Chairman of the Board

    • Tenure: 2yrs
  • Helmut Wieser (66yo)

    Independent Director

    • Tenure: 0.2yrs
  • Javier Molina Montes (59yo)

    CEO & Executive Director

    • Tenure: 2yrs
  • Frauke Heistermann (48yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
  • Asier Zarraonandia Ayo (52yo)

    VP of Steel Dust Recycling Services Business Unit & Executive Director

    • Tenure: 0yrs
  • Wolf Lehmann (48yo)

    CFO & Executive Director

    • Tenure: 2yrs
  • Manuel Soto (79yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
  • Georg von Waldersee (64yo)

    Independent Non-Executive Director

    • Tenure: 2yrs

Company Information

Befesa S.A.'s company bio, 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
  • Market Cap: €1.138b
  • Shares outstanding: 34.07m
  • Website: https://www.befesa.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BFSADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2017
0RVKLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 2017
BFSAXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 2017
BFSADBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 2017

Biography

Befesa S.A., a services company, offers waste management solutions. It operates through Steel Dust Recycling Services and Aluminium Salt Slags Recycling Services segments. The Steel Dust Recycling Services ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 21:57
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.