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1. Company Snapshot

1.a. Company Description

Bel Fuse Inc.designs, manufactures, markets, and sells products that are used in the networking, telecommunication, high-speed data transmission, commercial aerospace, military, broadcasting, transportation, e-Mobility and broadcasting, and consumer electronic industries in the United States, Macao, the United Kingdom, Slovakia, Germany, Switzerland, and internationally.It offers magnetic products, such as integrated connector modules; power transformers; SMD power inductors and SMPS transformers; and ethernet discrete components.


The company also provides power solutions and protection products comprising front-end power supplies; board-mount power; industrial power; external power; and circuit protection products.In addition, it offers connectivity solutions, which includes expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity.The company sells its products under the Bel, TRP Connector, MagJack, Signal, Bel Power Solutions, Melcher, CUI, Stratos, Fibreco, Cinch, Johnson, Trompeter, Midwest Microwave, Semflex, and Stewart Connector brands through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors.


Bel Fuse Inc.was incorporated in 1949 and is headquartered in Jersey City, New Jersey.

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1.b. Last Insights on BELFA

Bel Fuse Inc.'s recent performance was negatively driven by declining revenue, despite a 4% year-over-year increase in sales, due to lower demand for its products. The company's Power Solutions and Protection segment experienced a decline in sales, and its Enercon acquisition, which was completed in November 2024, is expected to contribute to a higher cost structure. Additionally, the departure of CEO Daniel Bernstein, who will step down in May 2025, may create uncertainty and negatively impact investor confidence.

1.c. Company Highlights

2. Bel Fuse's Q3 2025 Earnings: A Strong Performance

Bel Fuse Inc.'s third-quarter 2025 sales reached $179 million, a 44.8% increase from the same quarter last year, with double-digit organic growth across all three product segments. The company's profitability surpassed expectations, with a gross margin of 39.7%, up from 36.1% in Q3 2024. Earnings per share (EPS) came in at $1.99, beating analyst estimates of $1.43. The strong financial performance was driven by improved absorption of fixed costs and strong execution within each segment.

Publication Date: Dec -02

📋 Highlights
  • Q3 2025 Sales Growth:: Revenue surged to $179 million, a 44.8% increase from Q3 2024, driven by double-digit organic growth in all three product segments.
  • Gross Margin Expansion:: Margins improved to 39.7% (vs. 36.1% in Q3 2024), reflecting better fixed cost absorption and operational execution.
  • Power Solutions Segment Surge:: Sales reached $94.4 million, up 94% YoY (23.2% organic), excluding Enercon acquisition impact.
  • Q4 Guidance:: Projected sales of $165–180 million, supported by strength in commercial aerospace, defense, AI, and space markets.
  • R&D Investment Growth:: Expenses rose to $7.5 million (+$2.1 million YoY), primarily due to Enercon integration costs.

Segment Performance

The Power Solutions and Protection segment delivered sales of $94.4 million, a 94% increase year-over-year, with organic sales growth of 23.2% excluding the acquisition of Enercon. The Connectivity Solutions Group reported sales of $61.9 million, up 11% from Q3 2024, driven by strong performance in commercial aerospace and defense applications. The Magnetic Solutions group delivered sales of $22.7 million, an 18% increase from Q3 2024.

Guidance and Outlook

For the fourth quarter of 2025, the company expects sales to be in the range of $165 million to $180 million, assuming the trend of intra-quarter sales continues. Despite potential seasonality, the company sees continued strength in areas like commercial air, defense, AI, and space. The company's book-to-bill ratio was positive for the third consecutive quarter, a trend not seen since 2022, indicating a positive outlook.

Valuation Metrics

With a P/E Ratio of 5.0, P/B Ratio of 0.34, and P/S Ratio of 3.01, Bel Fuse's valuation appears reasonable. The company's ROE (%) of 12.5 and ROIC (%) of 9.33 indicate a strong return on equity and invested capital. The Net Debt / EBITDA ratio of 1.43 suggests a manageable debt burden.

Integration and M&A

The integration of Enercon into the company is progressing, with a focus on alignment, co-selling, and creating opportunities together. Early sparks of cross-selling opportunities are emerging. The company remains cautious and selective in its M&A approach, prioritizing paying down its balance sheet.

Operational Efficiency

The company is divesting a facility in China within its Magnetics segment, outsourcing manufacturing to improve cost efficiency. The impact on gross margin is expected to be around $1 million per year. The company's gross margin strategy involves using pricing as a tool to drive growth while maintaining a balance with margin profiles.

3. NewsRoom

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Bel Announces Expected Impairment Charge Related to Innolectric Investment

Dec -03

Source: globenewswire.com

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Bel Fuse: Margin Expansion And Valuation Compression Make A Strong Buy Case (Rating Upgrade)

Nov -06

Source: seekingalpha.com

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Bel Fuse Inc. Announces Regular Quarterly Cash Dividend on its Class A and Class B Shares

Oct -31

Source: globenewswire.com

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Bel Fuse Announces Upcoming Conference Schedule for November 2025

Oct -31

Source: globenewswire.com

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Bel Fuse Inc. (BELFA) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Bel Reports Third Quarter 2025 Results

Oct -29

Source: globenewswire.com

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Bel Fuse Schedules Third Quarter 2025 Financial Results Conference Call

Oct -09

Source: globenewswire.com

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Bel Fuse: Defense Tailwinds And Magnetics Recovery, But No Margin For Error

Aug -20

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.75%)

6. Segments

Power Solutions and Protection

Expected Growth: 8.5%

Bel Fuse Inc.'s Power Solutions and Protection segment growth of 8.5% is driven by increasing demand for reliable power supplies in data centers, electric vehicles, and renewable energy systems. Additionally, the rising need for efficient power management and protection in industrial and consumer electronics, as well as the growing adoption of 5G and IoT technologies, contribute to the segment's growth.

Connectivity Solutions

Expected Growth: 9.27%

Bel Fuse's Connectivity Solutions segment growth is driven by increasing demand for high-speed data transmission in cloud computing, 5G infrastructure, and IoT devices. Additionally, the rising need for reliable and efficient connectivity in electric and autonomous vehicles, as well as growing adoption of Industry 4.0 technologies, contribute to the 9.27% growth.

Magnetic Solutions

Expected Growth: 8.5%

Magnetic Solutions from Bel Fuse Inc. achieves 8.5% growth driven by increasing demand for high-reliability power magnetics in electric vehicles, data centers, and renewable energy systems. Additionally, the company's strategic acquisitions and investments in research and development enable it to capitalize on emerging trends in 5G, IoT, and industrial automation.

7. Detailed Products

MagJack Integrated Connector Modules

A series of integrated connector modules that combine the functionality of a RJ-45 connector with a transformer, common mode filter, and other components in a single package.

DC-DC Converters

A range of DC-DC converters that provide isolated and regulated voltage conversion for various applications.

Power Transformers

A series of power transformers designed for high-reliability applications, including switch-mode power supplies, DC-DC converters, and audio equipment.

Inductors

A range of inductors designed for high-reliability applications, including power supplies, DC-DC converters, and EMI filters.

Fuses

A range of fuses designed for high-reliability applications, including power supplies, DC-DC converters, and electrical systems.

Circuit Protection

A range of circuit protection devices, including fuses, circuit breakers, and surge protectors, designed to protect electrical systems from overcurrent, overvoltage, and other faults.

Connectors

A range of connectors designed for high-reliability applications, including I/O connectors, power connectors, and RF connectors.

8. Bel Fuse Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bel Fuse Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products from competitors.

Bargaining Power Of Customers

Bel Fuse Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Bel Fuse Inc. relies on a few key suppliers for critical components, which gives these suppliers some bargaining power. However, the company's long-term relationships with suppliers and its diversified supply chain mitigate this risk.

Threat Of New Entrants

The barriers to entry in Bel Fuse Inc.'s industry are relatively high, including significant capital requirements and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The market for Bel Fuse Inc.'s products is highly competitive, with several established players competing for market share. The company must continually innovate and improve its products to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.41%
Debt Cost 3.95%
Equity Weight 83.59%
Equity Cost 11.03%
WACC 9.87%
Leverage 19.63%

11. Quality Control: Bel Fuse Inc. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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LSI Industries

A-Score: 5.7/10

Value: 3.9

Growth: 6.3

Quality: 6.0

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

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Bel Fuse

A-Score: 4.8/10

Value: 4.6

Growth: 7.1

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 3.7

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CTS

A-Score: 4.4/10

Value: 4.7

Growth: 5.8

Quality: 7.0

Yield: 0.0

Momentum: 2.0

Volatility: 7.0

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Value: 3.7

Growth: 4.0

Quality: 5.8

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

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Vishay Precision Group

A-Score: 4.0/10

Value: 4.5

Growth: 2.9

Quality: 4.6

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

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SigmaTron International

A-Score: 3.2/10

Value: 9.3

Growth: 2.2

Quality: 2.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

145.12$

Current Price

145.12$

Potential

-0.00%

Expected Cash-Flows