Bel Fuse Inc. (BELFB) Bundle
A Brief History of Bel Fuse Inc.
Bel Fuse Inc. (NASDAQ: BELFB), established in 1949, has evolved into a leading global manufacturer of electronic components. The company specializes in power management, connectivity, and protection solutions across various industries, including telecommunications, data communications, and industrial applications.
Recent Financial Performance
As of the third quarter of 2024, Bel Fuse reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $8.08 million | $19.45 million | -58.4% |
| Earnings per Share (EPS) | $0.61 (Class A) | $1.46 (Class A) | -58.3% |
| Revenue | $123.64 million | $167.48 million | -26.2% |
| Gross Margin | 36.1% | 35.0% | +1.1% |
Sales Performance by Segment
Bel Fuse's sales performance varied across its product segments during the three and nine months ended September 30, 2024:
| Segment | Q3 2024 Sales | Q3 2023 Sales | Change (%) |
|---|---|---|---|
| Power Solutions and Protection | $48.68 million | $55.72 million | -12.8% |
| Connectivity Solutions | $19.24 million | $17.85 million | +7.8% |
| Magnetic Solutions | $12.16 million | $20.99 million | -42.3% |
Liquidity and Capital Resources
Bel Fuse's liquidity position at September 30, 2024, included:
- Cash and Cash Equivalents: $134.3 million
- Held to Maturity U.S. Treasury Securities: $29.5 million
- Current Ratio: 4.0 to 1
The company expects to meet foreseeable liquidity and capital resource requirements through existing cash and cash equivalents, anticipated cash flows from operations, and borrowings available under its credit facility.
Acquisition Activity
In September 2024, Bel Fuse entered into an agreement to acquire an 80% stake in Enercon, expected to close in the fourth quarter of 2024. The acquisition is anticipated to be funded through approximately $80 million of cash on hand and $240 million of incremental borrowings under its credit facility.
Share Repurchase Program
Bel Fuse has initiated a share repurchase program, authorizing up to $25 million to repurchase Class A and Class B common stock. As of September 30, 2024, the program had approximately $2.1 million and $6.9 million available for repurchases of Class A and Class B shares, respectively.
Market Challenges
Bel Fuse has faced challenges, particularly in the Magnetic Solutions segment, which saw a 40% decline in sales during the third quarter of 2024 compared to the same period in 2023. This decline was attributed to reduced demand from networking customers. Additionally, the company has reported fluctuations in foreign exchange rates impacting its overall financial performance.
Future Outlook
Looking ahead, Bel Fuse aims to leverage its strong liquidity position and strategic acquisitions to enhance its market presence and drive growth across its product segments.
A Who Owns Bel Fuse Inc. (BELFB)
Ownership Structure
As of 2024, Bel Fuse Inc. (BELFB) has a diverse ownership structure characterized by different classes of common stock. The company has two classes of common stock: Class A and Class B, which differ in terms of voting rights and dividend payments.
Major Shareholders
- Class A Common Stock: 2,118,000 shares outstanding
- Class B Common Stock: 10,434,000 shares outstanding
- Major institutional shareholders include:
- BlackRock, Inc. - 7.2% of total shares
- Dimensional Fund Advisors LP - 6.5% of total shares
- The Vanguard Group, Inc. - 5.8% of total shares
Shareholder Distribution
| Shareholder | Type | Ownership Percentage | Shares Owned |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 7.2% | 1,046,000 |
| Dimensional Fund Advisors LP | Institutional | 6.5% | 942,000 |
| The Vanguard Group, Inc. | Institutional | 5.8% | 834,000 |
| Company Insiders | Management | 10.0% | 1,440,000 |
| Other Institutional Investors | Various | 70.5% | 10,206,000 |
Recent Shareholder Changes
In 2024, Bel Fuse Inc. has seen a shift in its shareholder base, with a notable increase in institutional ownership. The company’s stock buyback program has also influenced shareholder distribution, as it has repurchased approximately $16.1 million worth of its own shares during the nine months ended September 30, 2024.
Financial Performance Indicators
For the nine months ended September 30, 2024, Bel Fuse Inc. reported:
- Net earnings of $42.76 million
- Total revenue of $384.93 million
- Effective tax rate of 21.4%
- Dividends declared amounted to $2.5 million
Stock Performance
As of September 30, 2024, the stock performance for Bel Fuse Inc. is as follows:
- Class A Common Stock: $83.41
- Class B Common Stock: $66.92
- Market capitalization: $1.5 billion
Dividend Information
| Class | Dividend per Share | Total Dividends Declared (2024) |
|---|---|---|
| Class A | $0.06 | $381,000 |
| Class B | $0.07 | $2,190,000 |
Conclusion on Ownership Trends
The ownership trends of Bel Fuse Inc. reflect a robust institutional interest and a strategic approach to capital management through stock repurchases. The company's financial health remains strong, supported by a solid revenue base and effective tax management strategies.
Bel Fuse Inc. (BELFB) Mission Statement
Bel Fuse Inc. is committed to delivering high-quality products that power, protect, and connect electronic circuits. The company's mission is to provide innovative solutions to meet the evolving needs of its customers, ensuring reliability and performance across a diverse range of industries.
Financial Performance Overview
As of September 30, 2024, Bel Fuse Inc. reported a consolidated revenue of $384.9 million for the nine months ended, reflecting a decrease of 23% compared to $499.8 million in the same period of 2023. The decline was primarily driven by reduced demand in the Power Solutions and Protection and Magnetic Solutions segments.
| Period | Revenue (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $123.6 | $55.5 | 35.0 |
| Q3 2023 | $158.7 | $64.2 | 40.5 |
| 9M 2024 | $384.9 | $146.2 | 38.0 |
| 9M 2023 | $499.8 | $164.7 | 32.9 |
Segment Performance
The performance of Bel Fuse's key segments is as follows:
- Power Solutions and Protection: Revenue decreased by $77.7 million (31.7%) in the first nine months of 2024 compared to the same period in 2023.
- Connectivity Solutions: Revenue increased by $7.8 million (4.9%) during the same period, attributed to higher sales volumes through distribution channels.
- Magnetic Solutions: Revenue declined by $45 million (47.6%) for the nine-month period, largely due to decreased demand from networking customers.
Liquidity and Capital Resources
As of September 30, 2024, Bel Fuse Inc. reported cash and cash equivalents of $134.3 million, along with held-to-maturity investments in U.S. Treasury securities amounting to $29.5 million. The company's current ratio was 4.0, indicating strong liquidity.
| Liquidity Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $134.3 |
| Held-to-Maturity Investments | $29.5 |
| Current Ratio | 4.0 |
Stock Performance and Shareholder Returns
Bel Fuse’s net earnings available to common stockholders for the nine months ended September 30, 2024, were $42.8 million, translating to earnings per share of $3.23 for Class A shares and $3.41 for Class B shares.
| Shareholder Returns | Class A EPS | Class B EPS | Dividends Declared (in millions) |
|---|---|---|---|
| 9M 2024 | $3.23 | $3.41 | $2.5 |
| 9M 2023 | $4.63 | $4.88 | $2.5 |
Research and Development
Research and Development (R&D) expenses remained consistent, amounting to $16.7 million for the nine months ended September 30, 2024, compared to $16.5 million in the same period of 2023.
| R&D Expenses | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| R&D Expense | $16.7 | $16.5 |
Recent Developments
In September 2024, Bel Fuse entered into an agreement to acquire an 80% stake in Enercon, with an expected funding requirement of approximately $80 million in cash on hand and $240 million in borrowings under its credit facility.
Conclusion
Bel Fuse Inc. continues to focus on its mission of innovation and quality in the electronic components market, despite facing challenges in certain segments. The company's strategic initiatives and strong liquidity position are aimed at navigating current market conditions and future growth opportunities.
How Bel Fuse Inc. (BELFB) Works
Company Overview
Bel Fuse Inc. operates in the electronics sector, primarily focusing on the design and manufacture of products that provide power conversion, connectivity, and protection solutions for various markets, including telecommunications, aerospace, and defense.
Financial Performance
As of September 30, 2024, Bel Fuse reported a net earnings of $42.76 million for the nine months ended, a decline from $61.80 million during the same period in 2023. The earnings per share for Class A common stock was $3.23 and $4.63 for the nine months ended September 30, 2024, compared to $4.88 in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Earnings | $42.76 million | $61.80 million |
| Earnings Per Share (Class A) | $3.23 | $4.63 |
| Earnings Per Share (Class B) | $3.41 | $4.88 |
| Gross Margin | 32.9% | 38.0% |
| Net Cash Provided by Operating Activities | $65.7 million | $81.4 million |
Revenue Breakdown
Bel Fuse's revenue streams are categorized into three main segments: Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions. For the third quarter of 2024, sales in these segments reflected varying performance:
- Power Solutions and Protection: $123.64 million (down 35.0% year-over-year)
- Connectivity Solutions: $55.72 million (up 7.6% year-over-year)
- Magnetic Solutions: $19.24 million (down 40.0% year-over-year)
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Power Solutions and Protection | $123.64 million | $158.68 million |
| Connectivity Solutions | $55.72 million | $51.77 million |
| Magnetic Solutions | $19.24 million | $32.05 million |
Liquidity and Capital Resources
Bel Fuse's liquidity position as of September 30, 2024, included:
- Cash and cash equivalents: $134.3 million
- Held-to-maturity investments: $29.5 million
- Current ratio: 4.0 to 1
Operational Efficiency
The company has focused on improving operational efficiency through facility consolidations, resulting in increased gross margins for Connectivity Solutions despite rising labor costs in Mexico. The gross margin for Connectivity Solutions was positively impacted by pricing actions and operational efficiencies from previous consolidations.
Research and Development
R&D expenses were $5.4 million for the third quarter of 2024, slightly up from $5.3 million in the same period in 2023, indicating a steady investment in innovation.
Market Trends and Challenges
Bel Fuse has faced challenges such as reduced demand for Magnetic Solutions products and fluctuating material costs impacting the Power Solutions segment. The backlog of orders decreased to $287.4 million as of September 30, 2024, down 23% from December 31, 2023.
Future Outlook
The company is preparing for the acquisition of Enercon, expected to close in the fourth quarter of 2024, which will enhance its product offerings in the aerospace and defense sectors. The acquisition is anticipated to be funded through cash reserves and borrowings.
How Bel Fuse Inc. (BELFB) Makes Money
Revenue Streams
Bel Fuse Inc. (BELFB) generates revenue through three primary segments:
- Power Solutions and Protection
- Connectivity Solutions
- Magnetic Solutions
As of the nine months ended September 30, 2024, the revenue distribution by segment was:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Power Solutions and Protection | $167.5 | 43% |
| Connectivity Solutions | $167.8 | 44% |
| Magnetic Solutions | $49.6 | 13% |
Financial Performance
For the three months ended September 30, 2024, Bel Fuse reported the following revenue and gross margins:
| Segment | Revenue (in millions) | Gross Margin (%) |
|---|---|---|
| Power Solutions and Protection | $48.7 | 39.4% |
| Connectivity Solutions | $55.7 | 36.6% |
| Magnetic Solutions | $19.2 | 27.3% |
| Total | $123.6 | 36.1% |
In comparison, for the nine months ended September 30, 2023, the revenue breakdown was:
| Segment | Revenue (in millions) | Gross Margin (%) |
|---|---|---|
| Power Solutions and Protection | $245.1 | 43.2% |
| Connectivity Solutions | $160.0 | 37.3% |
| Magnetic Solutions | $94.7 | 23.9% |
| Total | $499.8 | 38.0% |
Cost Structure
The cost of sales for the three months ended September 30, 2024, was as follows:
| Cost Type | Percentage of Revenue |
|---|---|
| Material Costs | 31.7% |
| Labor Costs | 7.8% |
| Other Expenses | 24.4% |
| Total Cost of Sales | 63.9% |
Market Dynamics
Revenue for the nine months ended September 30, 2024, decreased by $114.9 million, or 23%, compared to the same period in 2023. This decline was primarily attributed to:
- Lower demand in the Power Solutions and Protection segment, particularly from networking applications.
- Reduced sales in Magnetic Solutions due to ongoing inventory adjustments by customers.
- Partially offset by growth in Connectivity Solutions, driven by increased sales in military and aerospace markets.
The backlog of orders stood at $287.4 million as of September 30, 2024, reflecting a decrease of 23% from the previous year, with significant declines noted across all segments.
Recent Developments
On September 18, 2024, Bel Fuse announced its acquisition of an 80% stake in Enercon Technologies for approximately $320 million, which is expected to enhance its product offerings in the aerospace and defense markets.
Cash Flow and Liquidity
As of September 30, 2024, Bel Fuse reported cash and cash equivalents of $134.3 million. Cash flows from operating activities for the nine months ended September 30, 2024, were $65.7 million, with net earnings of $42.8 million for the same period.
| Cash Flow Category | Amount (in millions) |
|---|---|
| Net Earnings | $42.8 |
| Cash Provided by Operating Activities | $65.7 |
| Cash Used in Investing Activities | ($0.6) |
| Cash Used in Financing Activities | ($18.9) |
Bel Fuse's effective tax rate was 21.4% for the nine months ended September 30, 2024, reflecting fluctuations based on geographical operations.
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Article updated on 8 Nov 2024
Resources:
- Bel Fuse Inc. (BELFB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bel Fuse Inc. (BELFB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bel Fuse Inc. (BELFB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.