How much will Bel Fuse owe in August?

Bel Fuse is scheduled to announce its earnings today. Bel Fuse Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 451.79 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 18.9 M, whereas Earnings before Tax are forecasted to decline to (7.5 M). As many investors are getting excited about technology space, it is fair to go over Bel Fuse as an investment option. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The entity has accumulated 152.81 M in total debt with debt to equity ratio (D/E) of 0.94, which is about average as compared to similar companies. The firm has a current ratio of 3.37, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. About 24.0% of the company shares are held by company insiders. Bel Fuse has price-to-book (P/B) ratio of 0.79. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings (P/E) ratio of 124.51. The firm recorded a loss per share of 1.11. Bel Fuse last dividend was issued on the 14th of July 2020. This firm had 2:1 split on the 2nd of December 1999.
Bel Fuse financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bel Fuse, including all of Bel Fuse's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Bel Fuse assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bel Fuse debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Bel Total Debt

Bel Fuse A liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bel Fuse A has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Bel Fuse balance sheet include debt obligations and money owed to different Bel Fuse vendors, workers, and loan providers. Below is the chart of Bel main long-term debt accounts currently reported on its balance sheet.
You can use Bel Fuse A financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bel Fuse's Liquidity

Bel Fuse financial leverage refers to using borrowed capital as a funding source to finance Bel Fuse A ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bel Fuse financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bel Fuse's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bel Fuse's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Bel Fuse's total debt and its cash.

What is driving Bel Fuse Investor Appetite?

Bel Fuse reported the revenue of 471 M. Net Loss for the year was (13.68 M) with profit before overhead, payroll, taxes, and interest of 110.7 M.

Liabilities Breakdown

Tax Liabilities
92.2 M
Current Liabilities
179.6 M
Long-Term Liabilities
Total Liabilities271.77 Million
Current Liabilities92.2 Million
Long-Term Liabilities179.57 Million
Tax Liabilities27.59 Million

Our perspective of the current Bel Fuse build-up

Bel Fuse current downside deviation builds up over 7.82. As of the 31st of July, Bel Fuse shows the Risk Adjusted Performance of 0.241, downside deviation of 7.82, and Mean Deviation of 5.49. Bel Fuse technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Bel Fuse, which can be compared to its rivals. Please confirm Bel Fuse standard deviation, treynor ratio, downside variance, as well as the relationship between the information ratio and value at risk to decide if Bel Fuse is priced correctly, providing market reflects its regular price of 11.5 per share. Given that Bel Fuse has jensen alpha of 0.9858, we suggest you to validate Bel Fuse's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Bel Fuse

Whereas few other entities within the electronic components industry are still a little expensive, even after the recent corrections, Bel Fuse may offer a potential longer-term growth to investors. To sum up, as of the 31st of July 2020, our analysis shows that Bel Fuse follows the market closely. The company is fairly valued and projects below average odds of distress for the next 2 years. Our current 30 days 'Buy-Sell' recommendation on the company is Cautious Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Bel Fuse A. Please refer to our Terms of Use for any information regarding our disclosure principles.

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