Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Befesa

DB:BFSA
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BFSA
DB
€867M
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

Befesa S.A., a recycling services company, offers waste management solutions. The last earnings update was 11 days ago. More info.


Add to Portfolio Compare Print
  • Befesa has significant price volatility in the past 3 months.
BFSA Share Price and Events
7 Day Returns
-0.4%
DB:BFSA
-1.9%
DE Commercial Services
-0.6%
DE Market
1 Year Returns
-32.4%
DB:BFSA
-32.9%
DE Commercial Services
-20.9%
DE Market
BFSA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Befesa (BFSA) -0.4% -9.6% -32.8% -32.4% - -
DE Commercial Services -1.9% -23.9% -35.4% -32.9% -36.8% -47.7%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • BFSA matched the Commercial Services industry (-32.9%) over the past year.
  • BFSA underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
BFSA
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Befesa to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Befesa.

DB:BFSA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:BFSA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.588 (1 + (1- 26.01%) (62.93%))
0.907
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.907 * 5.44%)
4.54%

Discounted Cash Flow Calculation for DB:BFSA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Befesa is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:BFSA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 4.54%)
2020 16.57 Analyst x3 15.85
2021 85.14 Analyst x5 77.90
2022 103.43 Analyst x4 90.52
2023 54.30 Analyst x1 45.46
2024 62.00 Analyst x1 49.65
2025 55.18 Est @ -11% 42.27
2026 50.87 Est @ -7.82% 37.27
2027 48.02 Est @ -5.59% 33.66
2028 46.09 Est @ -4.03% 30.90
2029 44.73 Est @ -2.94% 28.68
Present value of next 10 years cash flows €452.00
DB:BFSA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €44.73 × (1 + -0.39%) ÷ (4.54% – -0.39%)
€903.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €903.14 ÷ (1 + 4.54%)10
€579.12
DB:BFSA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €452.00 + €579.12
€1,031.12
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €1,031.12 / 34.07
€30.27
DB:BFSA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:BFSA represents 0.99803x of XTRA:BFSA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99803x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 30.27 x 0.99803
€30.21
Value per share (EUR) From above. €30.21
Current discount Discount to share price of €25.40
= -1 x (€25.40 - €30.21) / €30.21
15.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Befesa is available for.
Intrinsic value
16%
Share price is €25.4 vs Future cash flow value of €30.21
Current Discount Checks
For Befesa to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Befesa's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Befesa's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Befesa's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Befesa's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:BFSA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €2.43
XTRA:BFSA Share Price ** XTRA (2020-04-03) in EUR €25.45
Germany Commercial Services Industry PE Ratio Median Figure of 6 Publicly-Listed Commercial Services Companies 94.45x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Befesa.

DB:BFSA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= XTRA:BFSA Share Price ÷ EPS (both in EUR)

= 25.45 ÷ 2.43

10.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Befesa is good value based on earnings compared to the DE Commercial Services industry average.
  • Befesa is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Befesa's expected growth come at a high price?
Raw Data
DB:BFSA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
2.7%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 48 Publicly-Listed Commercial Services Companies 1.09x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:BFSA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.48x ÷ 2.7%

3.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Befesa is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Befesa's assets?
Raw Data
DB:BFSA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €10.17
XTRA:BFSA Share Price * XTRA (2020-04-03) in EUR €25.45
Germany Commercial Services Industry PB Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.23x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:BFSA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= XTRA:BFSA Share Price ÷ Book Value per Share (both in EUR)

= 25.45 ÷ 10.17

2.5x

* Primary Listing of Befesa.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Befesa is overvalued based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess Befesa's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Befesa has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Befesa expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Befesa expected to grow at an attractive rate?
  • Befesa's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Befesa's earnings growth is positive but not above the Germany market average.
  • Befesa's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:BFSA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:BFSA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 2.7%
DB:BFSA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.1%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 21%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:BFSA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:BFSA Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 789 1
2023-12-31 750 1
2022-12-31 712 145 88 4
2021-12-31 663 131 80 5
2020-12-31 607 92 54 5
2020-04-06
DB:BFSA Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 648 103 83
2019-09-30 678 106 90
2019-06-30 687 116 89
2019-03-31 704 112 93
2018-12-31 720 104 92
2018-09-30 716 84 50
2018-06-30 733 96 47
2018-03-31 747 73 115
2017-12-31 725 92 22
2017-09-30 709 74 -36
2017-06-30 685 79 -43
2017-03-31 634 80 -100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Befesa's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
  • Befesa's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:BFSA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Befesa Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BFSA Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 2.66 2.68 2.64 2.00
2021-12-31 2.31 2.59 1.89 5.00
2020-12-31 1.60 2.54 0.93 5.00
2020-04-06
DB:BFSA Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 2.43
2019-09-30 2.65
2019-06-30 2.63
2019-03-31 2.72
2018-12-31 2.71
2018-09-30 2.00
2018-06-30 1.86
2018-03-31 4.16
2017-12-31 0.87
2017-09-30 -1.07
2017-06-30 -1.51
2017-03-31 -4.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Befesa is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Befesa's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Befesa has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Befesa performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Befesa's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Befesa has delivered over 20% year on year earnings growth in the past 5 years.
  • Befesa's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Befesa's 1-year earnings growth is negative, it can't be compared to the Europe Commercial Services industry average.
Earnings and Revenue History
Befesa's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Befesa Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:BFSA Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 647.94 82.71
2019-09-30 677.60 90.26
2019-06-30 686.73 89.45
2019-03-31 703.81 92.80
2018-12-31 720.09 92.39
2018-09-30 715.96 50.02
2018-06-30 732.80 46.58
2018-03-31 747.42 115.43
2017-12-31 724.79 21.81
2017-09-30 709.21 -36.38
2017-06-30 685.27 -42.78
2017-03-31 634.07 -99.55
2016-12-31 611.69 -51.94
2015-12-31 743.50 -83.63
2014-12-31 651.19 18.37
2013-12-31 533.38 -15.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • Befesa used its assets more efficiently than the DE Commercial Services industry average last year based on Return on Assets.
  • Befesa has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Befesa's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Befesa has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Befesa's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Befesa's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Befesa's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Befesa Company Filings, last reported 3 months ago.

DB:BFSA Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 360.22 531.01 125.46
2019-09-30 328.13 524.22 112.30
2019-06-30 308.42 528.95 181.04
2019-03-31 295.66 537.88 154.77
2018-12-31 342.63 529.15 150.65
2018-09-30 296.91 523.50 105.64
2018-06-30 246.28 528.68 104.42
2018-03-31 209.38 525.67 118.23
2017-12-31 179.73 524.03 117.58
2017-09-30 199.00 536.80 87.90
2017-06-30 198.64 538.27 84.65
2017-03-31 158.19 581.88 59.05
2016-12-31 158.19 581.55 59.05
2015-12-31 259.26 598.81 58.16
2014-12-31 248.08 687.99 83.05
2013-12-31 241.30 666.62 70.61
  • Befesa's level of debt (147.4%) 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 (277.2% vs 147.4% today).
  • Debt is not well covered by operating cash flow (19.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess Befesa's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Befesa has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.19%
Current annual income from Befesa dividends. Estimated to be 4.88% next year.
If you bought €2,000 of Befesa shares you are expected to receive €104 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Befesa's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Befesa's dividend is above the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:BFSA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:BFSA Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 1.32 3.00
2021-12-31 1.17 5.00
2020-12-31 1.32 2.00
2020-04-06
DB:BFSA Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-03-26 1.320 5.121
2019-03-21 1.320 3.941
2018-05-24 0.730 1.830
2018-03-26 0.730 1.759

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Befesa has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Befesa only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Befesa's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Befesa's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Befesa afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Befesa has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Javier Molina Montes
AGE 60
TENURE AS CEO 2.5 years
CEO Bio

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 serves as its President. He served as an Executive Vice President of Industrial Recycling and Director of the Environment Business Group at Abengoa, S.A. He served as Chief Executive Officer of Abengoa Servicios Urbanos (Abensur). He joined Abengoa, S.A. in 1994. From 1989 to 1993, he served as General Director of Tesca. From 1983 to 1985, he was an account executive at Banco de Progreso. He has been the Chairman of Befesa Medio Ambiente S.L. since 2000 and has been its Executive Director since July 11, 2000. He has been Executive Director of Befesa S.A. since October 18, 2017. He served as Director of Gestión Integral de RRHH, S.A., a subsidiary of Abengoa and Simosa IT, S.A., a subsidiary of Abengoa, until 2013. Mr. Molina Montes holds a Master in Law and Management and Business (ICADE, E3) from Universidad Pontificia de Comillas.

CEO Compensation
  • Insufficient data for Javier to compare compensation growth.
  • Insufficient data for Javier to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Befesa management team in years:

6.3
Average Tenure
52
Average Age
  • The average tenure for the Befesa management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Javier Molina Montes

TITLE
CEO & Executive Director
AGE
60
TENURE
2.5 yrs

Wolf Lehmann

TITLE
CFO & Executive Director
AGE
48
TENURE
6.3 yrs

Rafael Pérez

TITLE
Director of Investor Relations & Strategy

Birke Fuchs

TITLE
Board Secretary & General Counsel

Asier Zarraonandia Ayo

TITLE
VP of Steel Dust Recycling Services & Executive Director
AGE
52
TENURE
14.3 yrs
Board of Directors Tenure

Average tenure and age of the Befesa board of directors in years:

2.5
Average Tenure
64
Average Age
  • The average tenure for the Befesa board of directors is less than 3 years, this suggests a new board.
Board of Directors

Romeo Kreinberg

TITLE
Independent Chairman of the Board
AGE
69
TENURE
2.5 yrs

Javier Molina Montes

TITLE
CEO & Executive Director
AGE
60
TENURE
2.5 yrs

Wolf Lehmann

TITLE
CFO & Executive Director
AGE
48
TENURE
2.5 yrs

Asier Zarraonandia Ayo

TITLE
VP of Steel Dust Recycling Services & Executive Director
AGE
52
TENURE
0.8 yrs

Georg von Waldersee

TITLE
Independent Non-Executive Director
AGE
64
TENURE
2.5 yrs

Manuel Soto

TITLE
Independent Non-Executive Director
AGE
79
TENURE
2.5 yrs

Santiago Zaldumbide

TITLE
Independent Non-Executive Director
AGE
77
TENURE
2.5 yrs

Frauke Heistermann

TITLE
Independent Non-Executive Director
AGE
48
TENURE
2.5 yrs

Helmut Wieser

TITLE
Independent Director
AGE
66
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Befesa's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Befesa has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

An Intrinsic Calculation For Befesa S.A. (FRA:BFSA) Suggests It's 48% Undervalued

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (€, Millions) €89.1m €114.5m €113.5m €116.9m €119.4m €121.3m €122.8m €123.9m €124.7m €125.4m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x2 Analyst x1 Est @ 2.17% Est @ 1.59% Est @ 1.18% Est @ 0.89% Est @ 0.69% Est @ 0.55% Present Value (€, Millions) Discounted @ 5.84% €84.2 €102.3 €95.7 €93.2 €89.9 €86.3 €82.5 €78.7 €74.8 €71.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= €858.7m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … DB:BFSA Intrinsic value, July 29th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Befesa (FRA:BFSA) Seems To Use Debt Quite Sensibly

(FRA:BFSA) does have debt on its balance sheet. … DB:BFSA Historical Debt, July 15th 2019 How Strong Is Befesa's Balance Sheet? … Since Befesa does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

Is Befesa S.A. (FRA:BFSA) A High Quality Stock To Own?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Befesa: 33% = €93m ÷ €296m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. … Combining Befesa's Debt And Its 33% Return On Equity Befesa clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.82.

Simply Wall St -

Why Befesa S.A.’s (FRA:BFSA) Return On Capital Employed Is Impressive

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Befesa: 0.15 = €144m ÷ (€1.1b - €125m) (Based on the trailing twelve months to March 2019.) So, Befesa has an ROCE of 15%. … Do Befesa's Current Liabilities Skew Its ROCE? … Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual.

Simply Wall St -

Here's What You Should Know About Befesa S.A.'s (FRA:BFSA) 3.8% Dividend Yield

(FRA:BFSA) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. Some readers mightn't know much about Befesa's 3.8% dividend, as it has only been paying distributions for a year or so. There are a few simple ways to reduce the risks of buying Befesa for its dividend, and we'll go through these below. Click the interactive chart for our full dividend analysis DB:BFSA Historical Dividend Yield, June 13th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Befesa paid out 48% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Befesa paid out a conservative 45% of its free cash flow as dividends last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Befesa's Balance Sheet Risky? As Befesa has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Conclusion To summarise, shareholders should always check that Befesa's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Second, earnings per share have been in decline, and the dividend history is shorter than we'd like.

Simply Wall St -

Brief Commentary On Befesa S.A.'s (FRA:BFSA) Fundamentals

BFSA is a company that has been able to sustain great financial health, trading at an attractive share price. … BFSA's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. … Also, relative to the rest of its peers with similar levels of earnings, BFSA's share price is trading below the group's average.

Simply Wall St -

Is Befesa S.A. (FRA:BFSA) Trading At A 48% Discount?

by estimating the company's future cash flows and discounting them to their present value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

How Do Analysts See Befesa S.A. (FRA:BFSA) Performing In The Next 12 Months?

the consensus outlook from analysts appear somewhat bearish, … as a 3.3% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 37%.

Simply Wall St -

Will Befesa S.A.'s (FRA:BFSA) Earnings Grow In The Next Couple Of Years?

Befesa S.A.'s (FRA:BFSA) latest earnings update in December 2018a … revealed … company

Simply Wall St -

Should You Like Befesa S.A.’s (FRA:BFSA) High Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Company Info

Description

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.

Details
Name: Befesa S.A.
BFSA
Exchange: DB
Founded: 1987
€866,997,642
34,066,705
Website: http://www.befesa.com
Address: Befesa S.A.
46, Boulevard Grande-Duchesse Charlotte,
Luxembourg City,
1330,
Luxembourg
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
XTRA BFSA Ordinary Shares XETRA Trading Platform DE EUR 03. Nov 2017
DB BFSA Ordinary Shares Deutsche Boerse AG DE EUR 03. Nov 2017
LSE 0RVK Ordinary Shares London Stock Exchange GB EUR 03. Nov 2017
BATS-CHIXE BFSAD Ordinary Shares BATS 'Chi-X Europe' GB EUR 03. Nov 2017
ETLX BFSA Ordinary Shares Eurotlx IT EUR 03. Nov 2017
Number of employees
Current staff
Staff numbers
1,147
Befesa employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 01:06
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.