Announcement • Feb 28
Befesa S.A. announces Annual dividend, payable on June 24, 2025 Befesa S.A. announced Annual dividend of EUR 0.6400 per share payable on June 24, 2025, ex-date on June 20, 2025 and record date on June 23, 2025. Price Target Changed • Nov 06
Price target decreased by 7.4% to €34.14 Down from €36.86, the current price target is an average from 11 analysts. New target price is 64% above last closing price of €20.80. Stock is down 21% over the past year. The company is forecast to post earnings per share of €1.44 for next year compared to €1.45 last year. Reported Earnings • Nov 01
Third quarter 2024 earnings: Revenues miss analyst expectations Third quarter 2024 results: Revenue: €293.7m (up 1.7% from 3Q 2023). Net income: €4.95m (down 32% from 3Q 2023). Profit margin: 1.7% (down from 2.5% in 3Q 2023). Revenue missed analyst estimates by 3.4%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has fallen by 26% per year whereas the company’s share price has fallen by 30% per year. Reported Earnings • Jul 26
Second quarter 2024 earnings: EPS exceeds analyst expectations Second quarter 2024 results: EPS: €0.26 (up from €0.13 in 2Q 2023). Revenue: €322.8m (up 10.0% from 2Q 2023). Net income: €10.6m (up 108% from 2Q 2023). Profit margin: 3.3% (up from 1.7% in 2Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 16%. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has fallen by 20% per year whereas the company’s share price has fallen by 25% per year. Upcoming Dividend • Jun 14
Upcoming dividend of €0.73 per share Eligible shareholders must have bought the stock before 21 June 2024. Payment date: 25 June 2024. Payout ratio is a comfortable 56% but the company is paying out more than the cash it is generating. Trailing yield: 2.4%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (3.9%). New Risk • Jun 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risks Dividend is not well covered by cash flows (146% cash payout ratio). Share price has been volatile over the past 3 months (7.2% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.5% net profit margin). Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: €0.24 (vs €0.38 in 1Q 2023) First quarter 2024 results: EPS: €0.24 (down from €0.38 in 1Q 2023). Revenue: €298.3m (down 7.3% from 1Q 2023). Net income: €9.45m (down 38% from 1Q 2023). Profit margin: 3.2% (down from 4.7% in 1Q 2023). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €36.54, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 15x in the Commercial Services industry in Germany. Total loss to shareholders of 34% over the past three years. Reported Earnings • Mar 21
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: €1.45 (down from €2.66 in FY 2022). Revenue: €1.18b (up 3.9% from FY 2022). Net income: €58.0m (down 45% from FY 2022). Profit margin: 4.9% (down from 9.4% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 18%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Declared Dividend • Mar 03
Dividend of €0.73 announced Shareholders will receive a dividend of €0.73. Ex-date: 21st June 2024 Payment date: 25th June 2024 Dividend yield will be 2.4%, which is lower than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (107% earnings payout ratio) nor is it covered by cash flows (dividend approximately 6x free cash flows). The dividend has increased by an average of 9.4% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 19% to bring the payout ratio under control. EPS is expected to grow by 141% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Jan 26
Befesa S.A.(XTRA:BFSA) dropped from Germany SDAX (Total Return) Index Befesa S.A. has been dropped from Germany SDAX (Total Return) Index. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to €31.76, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 12x in the Commercial Services industry in Germany. Total loss to shareholders of 11% over the past three years. Reported Earnings • Oct 27
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: €0.18 (down from €0.93 in 3Q 2022). Revenue: €288.7m (up 1.2% from 3Q 2022). Net income: €7.30m (down 80% from 3Q 2022). Profit margin: 2.5% (down from 13% in 3Q 2022). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 50%. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: €0.13 (down from €0.58 in 2Q 2022). Revenue: €293.5m (down 5.7% from 2Q 2022). Net income: €5.09m (down 78% from 2Q 2022). Profit margin: 1.7% (down from 7.4% in 2Q 2022). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 69%. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Jun 09
Upcoming dividend of €1.25 per share at 3.5% yield Eligible shareholders must have bought the stock before 16 June 2023. Payment date: 20 June 2023. Payout ratio is a comfortable 53% but the company is paying out more than the cash it is generating. Trailing yield: 3.5%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (4.2%). Reported Earnings • May 06
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: EPS: €0.38 (down from €0.68 in 1Q 2022). Revenue: €322.0m (up 23% from 1Q 2022). Net income: €15.2m (down 44% from 1Q 2022). Profit margin: 4.7% (down from 10% in 1Q 2022). Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 24
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: €2.66. Revenue: €1.14b (up 38% from FY 2021). Net income: €106.2m (up 6.5% from FY 2021). Profit margin: 9.4% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Commercial Services industry in Germany. Buying Opportunity • Feb 11
Now 21% undervalued Over the last 90 days, the stock is up 17%. The fair value is estimated to be €62.48, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has grown by 9.8%. For the next 3 years, revenue is forecast to grow by 9.0% per annum. Earnings is also forecast to grow by 3.0% per annum over the same time period. Announcement • Nov 17
Befesa S.A. to Report Fiscal Year 2022 Final Results on Mar 23, 2023 Befesa S.A. announced that they will report fiscal year 2022 final results on Mar 23, 2023 Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 16% share price gain to €40.30, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Commercial Services industry in Germany. Total returns to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €53.45 per share. Reported Earnings • Oct 29
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: €0.93 (up from €0.40 in 3Q 2021). Revenue: €285.3m (up 50% from 3Q 2021). Net income: €37.2m (up 134% from 3Q 2021). Profit margin: 13% (up from 8.4% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 16%. Earnings per share (EPS) also surpassed analyst estimates by 154%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Commercial Services industry in Germany. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Price Target Changed • Oct 21
Price target decreased to €53.00 Down from €58.18, the current price target is an average from 11 analysts. New target price is 58% above last closing price of €33.46. Stock is down 51% over the past year. The company is forecast to post earnings per share of €2.51 for next year compared to €2.68 last year. Price Target Changed • Sep 19
Price target decreased to €58.18 Down from €63.30, the current price target is an average from 11 analysts. New target price is 81% above last closing price of €32.08. Stock is down 51% over the past year. The company is forecast to post earnings per share of €2.52 for next year compared to €2.68 last year. Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment deteriorated over the past week After last week's 19% share price decline to €32.08, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Commercial Services industry in Germany. Total returns to shareholders of 5.5% over the past three years. Reported Earnings • Jul 30
Second quarter 2022 earnings released: EPS: €0.58 (vs €0.60 in 2Q 2021) Second quarter 2022 results: EPS: €0.58. Revenue: €311.1m (up 62% from 2Q 2021). Net income: €23.0m (up 11% from 2Q 2021). Profit margin: 7.4% (down from 11% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 8.1%, compared to a 5.3% growth forecast for the industry in Germany. Price Target Changed • Jul 20
Price target decreased to €69.02 Down from €76.17, the current price target is an average from 10 analysts. New target price is 52% above last closing price of €45.34. Stock is down 28% over the past year. The company is forecast to post earnings per share of €2.97 for next year compared to €2.68 last year. Price Target Changed • Jul 14
Price target decreased to €70.92 Down from €76.77, the current price target is an average from 10 analysts. New target price is 65% above last closing price of €43.00. Stock is down 36% over the past year. The company is forecast to post earnings per share of €2.98 for next year compared to €2.68 last year. Upcoming Dividend • Jun 10
Upcoming dividend of €1.25 per share Eligible shareholders must have bought the stock before 17 June 2022. Payment date: 21 June 2022. Payout ratio is a comfortable 48% but the company is paying out more than the cash it is generating. Trailing yield: 2.1%. Lower than top quartile of German dividend payers (4.3%). Lower than average of industry peers (3.3%). Reported Earnings • May 01
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: €0.68. Revenue: €261.4m (up 36% from 1Q 2021). Net income: €27.0m (up 8.9% from 1Q 2021). Profit margin: 10% (down from 13% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 26%. Over the next year, revenue is forecast to grow 18%, compared to a 16% growth forecast for the industry in Germany. Reported Earnings • Apr 01
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: €2.68 (up from €1.40 in FY 2020). Revenue: €821.6m (up 36% from FY 2020). Net income: €99.7m (up 110% from FY 2020). Profit margin: 12% (up from 7.9% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 2.6%. Over the next year, revenue is forecast to grow 34%, compared to a 26% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Reported Earnings • Nov 01
Third quarter 2021 earnings released: EPS €0.40 (vs €0.32 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €190.0m (up 31% from 3Q 2020). Net income: €15.9m (up 47% from 3Q 2020). Profit margin: 8.4% (up from 7.5% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Aug 20
Befesa S.A. (XTRA:BFSA) completed the acquisition of American Zinc Recycling Corp. from American Zinc Recycling LLC and others. Befesa S.A. (XTRA:BFSA) entered into an agreement to acquire American Zinc Recycling Corp. from American Zinc Recycling LLC and others for $450 million on June 16, 2021. Additionally, Befesa will invest $10 million for a minority stake in AZR’s downstream refining operation in Rutherford County, NC, American Zinc Products (“AZP”), forming a joint venture with the current ownership i.e. As part of the agreement, Befesa will also acquire a minority stake of 6.9% of the equity interests in American Zinc Products LLC ("AZP"), AZR's zinc refining subsidiary, for $10 million with the option to acquire the remaining 93.1% of the equity interests in AZP for a consideration of USD 135 million (subject to customary adjustments), plus an additional earn out in an amount of up to $29 million. The acquisition will be financed through a capital increase and a pre-approved term loan B (TLB) add-on of EUR 90 million, maintaining Befesa's leverage ratio at similar levels post acquisition. AZP employees will remain with the joint venture. The combined company will include all employees in AZR’s recycling business, and will operate under the Befesa name. The International Metals Reclamation Company (INMETCO), will continue to be a wholly owned subsidiary of AZR and operate as a standalone business. The transaction is subject to antitrust approval, regulatory approvals and other customary closing conditions. The expected closing date of the transaction is Q3 2021. BMO Capital Markets Corp. acted as a financial advisor to American Zinc Recycling Corp. and Iain Wood, Nicholas Houpt, Evan Goodman and William Pelak of Akin Gump Strauss Hauer & Feld LLP acted as a legal advisors to American Zinc Recycling Corp. Rohan Sawhney of Citigroup Inc. (NYSE:C) . acted as a financial advisor to American Zinc Recycling Corp. Noerr LLP acted as legal advisor to Befesa S.A. (XTRA:BFSA) Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Befesa S.A. (XTRA:BFSA)
Befesa S.A. (XTRA:BFSA) completed the acquisition of American Zinc Recycling Corp. from American Zinc Recycling LLC and others on August 19, 2021. AZR reports that it will continue to own a majority interest in American Zinc Products with a U.S. subsidiary of Glencore S.A. continuing to own the remaining interests. As part of the transaction, AZR LLC will be renamed Metals Recovery Holdings LLC. Michael Griffin will become president and CEO of AZR LLC. Andrew Repine will become chief financial officer of AZR. Price Target Changed • Jun 22
Price target increased to €67.37 Up from €62.31, the current price target is an average from 6 analysts. New target price is 9.0% above last closing price of €61.80. Stock is up 89% over the past year. Announcement • Apr 27
Befesa S.A. Proposes Dividend for the Year 2021 Befesa S.A. at its annual general meeting to be held on June 30, 2021, proposed dividend distribution of EUR 40 million (EUR 1.17 per share) for 2021, equal to 84% of 2020 net profit of EUR 47.6 million, equal to 50% on a two-year basis, at the upper end of the company’s dividend policy. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS €1.40 (vs €2.43 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: €604.3m (down 6.7% from FY 2019). Net income: €47.6m (down 42% from FY 2019). Profit margin: 7.9% (down from 13% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Price Target Changed • Mar 01
Price target raised to €58.03 Up from €52.46, the current price target is an average from 5 analysts. The new target price is close to the current share price of €56.20. As of last close, the stock is up 92% over the past year. Is New 90 Day High Low • Jan 20
New 90-day high: €58.70 The company is up 64% from its price of €35.70 on 22 October 2020. The German market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 36% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €55.72 per share. Price Target Changed • Jan 15
Price target raised to €52.46 Up from €48.89, the current price target is an average from 6 analysts. The new target price is close to the current share price of €55.00. As of last close, the stock is up 58% over the past year. Is New 90 Day High Low • Dec 24
New 90-day high: €49.25 The company is up 45% from its price of €34.00 on 25 September 2020. The German market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 31% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €53.37 per share. Is New 90 Day High Low • Dec 04
New 90-day high: €44.80 The company is up 35% from its price of €33.20 on 04 September 2020. The German market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €33.60 per share. Price Target Changed • Dec 01
Price target raised to €45.89 Up from €40.66, the current price target is an average from 6 analysts. The new target price is 6.0% above the current share price of €43.30. As of last close, the stock is up 29% over the past year. Announcement • Nov 26
Befesa S.A. to Report Fiscal Year 2020 Results on Feb 23, 2021 Befesa S.A. announced that they will report fiscal year 2020 results on Feb 23, 2021 Is New 90 Day High Low • Nov 10
New 90-day high: €37.65 The company is up 16% from its price of €32.45 on 11 August 2020. The German market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €33.18 per share. Analyst Estimate Surprise Post Earnings • Nov 03
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 7.2%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Over the next year, revenue is forecast to grow 7.4% while the growth in Commercial Services industry in Germany is expected to stay flat. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS €0.32 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: €145.2m (down 1.6% from 3Q 2019). Net income: €10.8m (down 42% from 3Q 2019). Profit margin: 7.5% (down from 13% in 3Q 2019). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Oct 24
New 90-day high: €36.85 The company is up 6.0% from its price of €34.65 on 24 July 2020. The German market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €31.88 per share. Is New 90 Day High Low • Oct 05
New 90-day high: €35.70 The company is up 7.0% from its price of €33.50 on 07 July 2020. The German market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €31.80 per share. 
