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%

BFSA

0.8%

DE Commercial Services

0.1%

DE Market


1 Year Return

-19.1%

BFSA

-20.9%

DE Commercial Services

-4.5%

DE Market

BFSA outperformed the Commercial Services industry which returned -20.3% over the past year.

BFSA underperformed the Market in Germany which returned -4.6% over the past year.


Share holder returns

BFSAIndustryMarket
7 Day0%0.8%0.1%
30 Day20.2%12.5%6.2%
90 Day-1.3%-2.7%1.4%
1 Year-15.9%-19.1%-18.0%-20.9%-1.5%-4.5%
3 Yearn/a12.2%2.6%16.5%6.5%
5 Yearn/a-1.7%-15.3%33.8%15.5%

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 based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Befesa's share price is below the future cash flow value, and at a moderate discount (> 20%).

Befesa's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Befesa is good value based on earnings compared to the Europe Commercial Services industry average.

Befesa is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Befesa is poor value based on expected growth next year.


Price Based on Value of Assets

Befesa is overvalued based on assets compared to the DE Commercial Services industry average.


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Befesa's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Befesa's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Befesa's revenue growth is positive but not above the Germany market average.

Befesa's earnings growth is positive but not above the Germany market average.

Befesa's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Befesa is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Befesa has delivered over 20% year on year earnings growth in the past 5 years.

Befesa's 1-year earnings growth exceeds its 5-year average (92% vs 56.6%)

Befesa's earnings growth has exceeded the Europe Commercial Services industry average in the past year (92% vs 13%).


Return on Equity

Whilst Befesa has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Befesa used its assets more efficiently than the Europe Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Befesa has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Befesa's financial position?


Financial Position Analysis

Befesa is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Befesa's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Befesa's level of debt (171.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (276.8% vs 171.5% today).

Debt is well covered by operating cash flow (21.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Befesa's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.39%).

Befesa's dividend is above the markets top 25% of dividend payers in Germany (3.86%).

It is too early to tell whether Befesa has stable dividend payments.

Befesa only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Javier Molina Montes (59yo)

1.9yrs

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

5.7yrs

Average Tenure

52yo

Average Age

The average tenure for the Befesa management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.9yrs

Average Tenure

64yo

Average Age

The average tenure for the Befesa board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Javier Molina Montes (59yo)

    CEO & Executive Director

    • Tenure: 1.9yrs
  • Asier Zarraonandia Ayo (52yo)

    VP of Steel Dust Recycling Services Business Unit & Executive Director

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

    CFO & Executive Director

    • Tenure: 1.9yrs
  • 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: 1.9yrs
  • Romeo Kreinberg (68yo)

    Chairman of the Board

    • Tenure: 1.9yrs
  • Helmut Wieser (66yo)

    Independent Director

    • Tenure: 0.08yrs
  • Javier Molina Montes (59yo)

    CEO & Executive Director

    • Tenure: 1.9yrs
  • Frauke Heistermann (48yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
  • Asier Zarraonandia Ayo (52yo)

    VP of Steel Dust Recycling Services Business Unit & Executive Director

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

    CFO & Executive Director

    • Tenure: 1.9yrs
  • Manuel Soto (79yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
  • Georg von Waldersee (64yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs

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: €1.126b
  • 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

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 Analysis2019/09/19 21:43
End of Day Share Price2019/09/19 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.