Bel Fuse Inc. reports 73.8% EBITDA growth in 2020 and 4.2 pp EBITDA Margin growth from 5.0% to 9.3%
02/18/2021 • About Bel Fuse Inc. (
$BELFA) • By InTwits
Bel Fuse Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bel Fuse Inc. is a company in decline: 2020 revenue growth was -5.4%, 5 years revenue CAGR was -3.9%
- EBITDA Margin is quite volatile: 9.3% in 2020, 5.0% in 2019, 8.7% in 2018, 7.8% in 2017, -10.9% in 2016
- Bel Fuse Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 14.0%
- CAPEX is quite volatile: $5m in 2020, $39m in 2019, $14m in 2018, $6m in 2017, $8m in 2016
- The company has potentially unprofitable business model: ROIC is 6.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 5.4%. Annual revenue decline showed slowdown in 20Q4 - revenue increased slightly on 0.87%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.2 pp from 5.0% to 9.3% in 2020.
Gross Margin increased on 3.2 pp from 22.5% to 25.7% in 2020. SG&A as a % of Revenue increased slightly on 1.5 pp from 15.4% to 16.9% in 2020.
Net Income margin increased on 4.5 pp from -1.8% to 2.7% in 2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.2% in 2020. Bel Fuse Inc.'s CAPEX/Revenue showed almost no change from 2017 to 2020. It's average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at low ROIC (6.1%) and ROE (7.2%). ROIC increased on 5.6 pp from 0.52% to 6.1% in 2020. ROE jumped on 12.3 pp from -5.1% to 7.2% in 2020.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 3.7x to 1.1x in 2020. Debt dropped on 19.7% while cash jumped on 17.5%.
Bel Fuse Inc. has no short term refinancing risk: cash is higher than short term debt (703.4%).
Valuation and dividends
The company's trades at EV/EBITDA 1.8x and P/E 2.6x.
Management team
The company's CEO is Daniel Bernstein. Daniel Bernstein has 19 years tenure with the company. The company's CFO Farouq Tuweiq has spent 1 month year with the company.
Financial and operational results
FY ended 12/31/2020
Bel Fuse Inc. ($BELFA) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 500.2 | 491.6 | 548.2 | 492.4 | 465.8 | -5.4% |
| Gross Profit | 99.9 | 102.3 | 109.8 | 110.7 | 119.7 | 8.2% |
| SG&A | 71.0 | 84.7 | 79.9 | 76.1 | 78.7 | 3.5% |
| EBITDA | -54.7 | 38.1 | 47.8 | 24.9 | 43.2 | 73.8% |
| Net Income | -64.8 | -11.9 | 20.7 | -8.7 | 12.8 | |
Balance Sheet
|
|---|
| Cash | 73.4 | 69.4 | 53.9 | 72.3 | 84.9 | 17.5% |
| Short Term Debt | 11.4 | 2.6 | 2.5 | 13.0 | 12.1 | -7.0% |
| Long Term Debt | 129.9 | 120.1 | 111.7 | 150.5 | 119.1 | -20.8% |
Cash flow
|
|---|
| Capex | 8.2 | 6.4 | 13.8 | 38.9 | 5.5 | -85.9% |
Ratios
|
|---|
| Revenue growth | -11.8% | -1.7% | 11.5% | -10.2% | -5.4% | |
| EBITDA growth | -206.1% | -169.6% | 25.5% | -48.0% | 73.8% | |
|
|---|
| Gross Margin | 20.0% | 20.8% | 20.0% | 22.5% | 25.7% | 3.2% |
| EBITDA Margin | -10.9% | 7.8% | 8.7% | 5.0% | 9.3% | 4.2% |
| SG&A, % of revenue | 14.2% | 17.2% | 14.6% | 15.4% | 16.9% | 1.5% |
| Net Income Margin | -13.0% | -2.4% | 3.8% | -1.8% | 2.7% | 4.5% |
| CAPEX, % of revenue | 1.6% | 1.3% | 2.5% | 7.9% | 1.2% | -6.7% |
|
|---|
| ROIC | -20.9% | 6.0% | 10.3% | 0.5% | 6.1% | 5.6% |
| ROE | -33.1% | -7.5% | 12.4% | -5.1% | 7.2% | 12.3% |
| Net Debt/EBITDA | | 1.4x | 1.3x | 3.7x | 1.1x | -2.6x |
Bel Fuse Inc. ($BELFA) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 104 | 121 | 124 | 116 | | -17.1% | -4.9% | 0.0% | 0.9% |
| EBITDA | 1 | 12 | 13 | 10 | | -88.9% | 5.6% | 838.0% | 143.8% |
| Net Income | -4 | 6 | 7 | 4 | | -436.3% | 87.8% | - | - |
Balance Sheet
|
|---|
| Cash | 68 | 75 | 81 | 85 | | 58.4% | 28.9% | 25.2% | 17.5% |
| Short Term Debt | 7 | 9 | 10 | 12 | | -24.9% | -15.3% | -3.8% | -7.0% |
| Long Term Debt | 146 | 143 | 131 | 119 | | 17.4% | 17.8% | 10.0% | -20.8% |
Ratios
|
|---|
| Gross Margin | 24.2% | 26.2% | 26.9% | 25.3% | | 5.4% | 10.6% | 8.9% | 3.9% |
| EBITDA Margin | 1.0% | 9.6% | 10.4% | 8.4% | | -6.2% | 1.0% | 9.3% | 4.9% |
| Net Income Margin | -3.7% | 4.6% | 6.0% | 3.1% | | -4.6% | 2.3% | 11.2% | 8.6% |
Peers in Electronic Components
Below we provide Bel Fuse Inc. benchmarking against other companies in Electronic Components industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | - | -40.9% | 22.6% | -16.3% | 52.6% |
| IEH Corp ($IEHC) | - | 4.0% | 16.6% | 21.0% | 13.2% |
| Amphenol Corporation ($APH) | - | 11.5% | 17.0% | 0.3% | 4.5% |
| Corning Incorporated ($GLW) | - | 7.7% | 11.6% | 1.9% | -1.7% |
| CPS Technologies Corp. ($CPSH) | - | -5.0% | 48.0% | -0.5% | -2.8% |
| |
|---|
| Median (12 companies) | -10.4% | 8.3% | 16.6% | -0.1% | -5.1% |
|---|
| Bel Fuse Inc. ($BELFA) | - | -1.7% | 11.5% | -10.2% | -5.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cavitation Technologies Inc ($CVAT) | 93.2% | 93.5% | 90.6% | 93.7% | 97.6% |
| Dolby Laboratories ($DLB) | 89.4% | 89.1% | 87.9% | 87.0% | 87.4% |
| Airgain, Inc. ($AIRG) | 44.4% | 47.1% | 43.7% | 45.4% | 46.6% |
| Rogers Corporation ($ROG) | 38.0% | 38.8% | 35.4% | 35.0% | 36.4% |
| Belden Inc ($BDC) | 41.6% | 39.1% | 39.0% | 37.2% | 35.6% |
| |
|---|
| Median (12 companies) | 33.7% | 38.3% | 37.6% | 36.6% | 35.1% |
|---|
| Bel Fuse Inc. ($BELFA) | 20.0% | 20.8% | 20.0% | 22.5% | 25.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dolby Laboratories ($DLB) | 30.9% | 30.8% | 25.1% | 27.6% | 28.7% |
| Amphenol Corporation ($APH) | 22.6% | 23.6% | 24.2% | 24.7% | 22.6% |
| Littelfuse, Inc. ($LFUS) | 17.4% | 23.0% | 19.1% | 19.5% | 18.5% |
| Corning Incorporated ($GLW) | 27.9% | 27.3% | 25.4% | 25.7% | 18.0% |
| Rogers Corporation ($ROG) | 18.5% | 21.3% | 18.5% | 18.1% | 17.7% |
| |
|---|
| Median (12 companies) | 14.1% | 11.4% | 12.7% | 17.5% | 15.4% |
|---|
| Bel Fuse Inc. ($BELFA) | -10.9% | 7.8% | 8.7% | 5.0% | 9.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Corning Incorporated ($GLW) | 12.0% | 17.8% | 19.9% | 17.2% | 12.2% |
| Dolby Laboratories ($DLB) | 9.8% | 9.2% | 6.9% | 7.8% | 5.7% |
| Rogers Corporation ($ROG) | 2.8% | 3.3% | 5.4% | 5.7% | 5.0% |
| Vishay Intertechnology, Inc. ($VSH) | 5.8% | 6.6% | 7.6% | 5.9% | 4.9% |
| Belden Inc ($BDC) | 2.3% | 2.7% | 3.8% | 5.2% | 4.8% |
| |
|---|
| Median (12 companies) | 3.4% | 5.1% | 4.1% | 4.5% | 4.0% |
|---|
| Bel Fuse Inc. ($BELFA) | 1.6% | 1.3% | 2.5% | 7.9% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Amphenol Corporation ($APH) | 18.3% | 19.2% | 21.1% | 19.4% | 18.0% |
| CPS Technologies Corp. ($CPSH) | -10.8% | -19.4% | -11.9% | -9.3% | 13.8% |
| IEH Corp ($IEHC) | 24.2% | 19.2% | 26.1% | 36.6% | 12.8% |
| Vishay Intertechnology, Inc. ($VSH) | 9.8% | 18.4% | 27.8% | 13.2% | 9.9% |
| Dolby Laboratories ($DLB) | 12.2% | 12.0% | 8.4% | 11.4% | 9.6% |
| |
|---|
| Median (12 companies) | 6.4% | 7.0% | 7.8% | 8.5% | 6.9% |
|---|
| Bel Fuse Inc. ($BELFA) | -20.9% | 6.0% | 10.3% | 0.5% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Belden Inc ($BDC) | 2.1x | 2.6x | 2.3x | 3.1x | 4.6x |
| Corning Incorporated ($GLW) | -0.5x | 0.3x | 1.3x | 2.1x | 2.6x |
| Amphenol Corporation ($APH) | 1.4x | 1.1x | 1.2x | 1.4x | 1.1x |
| Knowles Corporation ($KN) | 2.0x | 1.0x | 0.7x | 0.9x | 0.6x |
| Littelfuse, Inc. ($LFUS) | 1.0x | 0.2x | 0.6x | 0.6x | 0.1x |
| |
|---|
| Median (11 companies) | -0.5x | -0.3x | 0.5x | 0.6x | 0.0x |
|---|
| Bel Fuse Inc. ($BELFA) | - | 1.4x | 1.3x | 3.7x | 1.1x |
