DB:BFSA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value average dividend payer.


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

Stable Share Price: BFSA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.3%

BFSA

0.8%

DE Commercial Services

7.3%

DE Market


1 Year Return

-35.3%

BFSA

-32.2%

DE Commercial Services

-17.7%

DE Market

Return vs Industry: BFSA matched the German Commercial Services industry which returned -32.2% over the past year.

Return vs Market: BFSA underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

BFSAIndustryMarket
7 Day10.3%0.8%7.3%
30 Day-13.7%-22.5%-17.9%
90 Day-32.3%-34.5%-25.8%
1 Year-32.7%-35.3%-29.7%-32.2%-15.1%-17.7%
3 Yearn/a-27.5%-33.9%-18.7%-25.6%
5 Yearn/a-35.3%-44.4%-17.7%-29.0%

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?

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BFSA (€25.25) is trading below our estimate of fair value (€29.94)

Significantly Below Fair Value: BFSA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BFSA is good value based on its PE Ratio (10.3x) compared to the Commercial Services industry average (95.2x).

PE vs Market: BFSA is good value based on its PE Ratio (10.3x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: BFSA is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: BFSA is good value based on its PB Ratio (2.5x) compared to the DE Commercial Services industry average (2.5x).


Next Steps

Future Growth

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

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFSA's forecast earnings growth (4.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: BFSA's earnings (4.9% per year) are forecast to grow slower than the German market (14.2% per year).

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

Revenue vs Market: BFSA's revenue (4.1% per year) is forecast to grow slower than the German market (4.2% per year).

High Growth Revenue: BFSA's revenue (4.1% 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 (21.2%)


Next Steps

Past Performance

How has Befesa performed over the past 5 years?

53.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BFSA has high quality earnings.

Growing Profit Margin: BFSA's current net profit margins (12.8%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: BFSA's earnings have grown significantly by 53.1% per year over the past 5 years.

Accelerating Growth: BFSA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BFSA had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Commercial Services industry average (10.4%).


Return on Equity

High ROE: Whilst BFSA's Return on Equity (24.4%) is high, this metric is skewed due to their high level of debt.


Next Steps

  • Explore strong past performing companies in the Commercial Services industry.

Financial Health

How is Befesa's financial position?


Financial Position Analysis

Short Term Liabilities: BFSA's short term assets (€277.8M) exceed its short term liabilities (€139.3M).

Long Term Liabilities: BFSA's short term assets (€277.8M) do not cover its long term liabilities (€616.3M).


Debt to Equity History and Analysis

Debt Level: BFSA's debt to equity ratio (147.4%) is considered high.

Reducing Debt: BFSA's debt to equity ratio has reduced from 277.2% to 147.4% over the past 5 years.

Debt Coverage: BFSA's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: BFSA's interest payments on its debt are well covered by EBIT (8.1x 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 0.5x debt).


Next Steps

Dividend

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

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BFSA's dividend (5.26%) is higher than the bottom 25% of dividend payers in the German market (1.71%).

High Dividend: BFSA's dividend (5.26%) is in the top 25% of dividend payers in the German market (4.98%)


Stability and Growth of Payments

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 (54.4%), 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 covered by earnings (50.4% payout ratio).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Javier Molina Montes (59yo)

2.42s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Javier Molina Montes
CEO & Executive Director2.42yrsno datano data
Wolf Lehmann
CFO & Executive Director2.42yrsno datano data
Rafael Pérez
Director of Investor Relations & Strategyno datano datano data
Birke Fuchs
Board Secretary & General Counselno datano datano data
Asier Zarraonandia Ayo
Vice President of Steel Dust Recycling Services & Executive Directorno datano datano data

6.2yrs

Average Tenure

52yo

Average Age

Experienced Management: BFSA's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Javier Molina Montes
CEO & Executive Director2.42yrsno datano data
Wolf Lehmann
CFO & Executive Director2.42yrsno datano data
Asier Zarraonandia Ayo
Vice President of Steel Dust Recycling Services & Executive Directorno datano datano data
Santiago Zaldumbide
Independent Non-Executive Director2.42yrsno datano data
Romeo Kreinberg
Independent Chairman of the Board2.42yrsno datano data
Helmut Wieser
Independent Director0.58yrno datano data
Frauke Heistermann
Independent Non-Executive Director2.42yrsno datano data
Manuel Soto
Independent Non-Executive Director2.42yrsno datano data
Georg von Waldersee
Independent Non-Executive Director2.42yrsno datano data

2.4yrs

Average Tenure

64yo

Average Age

Experienced Board: BFSA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Befesa S.A.
  • Ticker: BFSA
  • Exchange: DB
  • Founded: 1987
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: €855.074m
  • 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
BFSAETLX (Eurotlx)YesOrdinary SharesITEURNov 2017

Biography

Befesa S.A., a recycling services company, offers waste management solutions. 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. The Aluminium Salt Slags Recycling Services segment recycles salt slags and spent pot linings; and recovers and sells salt, aluminum concentrate, and aluminum oxides. This segment also collects and recycles aluminum scrap and other aluminum residues, such as aluminium drosses, shavings, and cuttings; and produces secondary aluminum alloys for automotive and construction industries. The company also offers logistics and waelz oxide treatment services; develops projects and technology; and operates as a marketing company. It has operations in Spain, Germany, France, the United Kingdom, rest of Europe, South Korea, and internationally. The company was founded in 1987 and is based in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:23
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.