6/4/2023 0 Comments Fuse stock![]() ![]() So if you like to buy cheap, you may want to check if Bel Fuse is trading on a high P/E or a low P/E, relative to its industry. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. On balance the message seems to be that this stock is worth looking at, at least for a while. To add to the positives, Bel Fuse has recorded instances of insider buying and a modest executive pay to boot. If you believe that share price follows earnings per share you should definitely be delving further into Bel Fuse's strong EPS growth. Does Bel Fuse Deserve A Spot On Your Watchlist? It can also be a sign of good governance, more generally. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. That looks like a modest pay packet, and may hint at a certain respect for the interests of shareholders. The Bel Fuse CEO received total compensation of just US$702k in the year to December 2021. The median total compensation for CEOs of companies similar in size to Bel Fuse, with market caps between US$100m and US$400m, is around US$1.8m. To be specific, the CEO is paid modestly when compared to company peers of the same size. Recent insider purchases of Bel Fuse stock is not the only way management has kept the interests of the general public shareholders in mind. It seems that at least one insider is prepared to show the market there is potential within Bel Fuse. With that in mind, it's heartening that Farouq Tuweiq, the CFO, Principal Financial Officer & Treasurer of the company, paid US$30k for shares at around US$14.78 each. The good news for Bel Fuse shareholders is that no insiders reported selling shares in the last year. To see the actual numbers, click on the chart. The chart below shows how the company's bottom and top lines have progressed over time. ![]() Both of which are great metrics to check off for potential growth. The music to the ears of Bel Fuse shareholders is that EBIT margins have grown from 2.8% to 6.1% in the last 12 months and revenues are on an upwards trend as well. ![]() Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. ![]() Bel Fuse's EPS skyrocketed from US$1.60 to US$2.13, in just one year a result that's bound to bring a smile to shareholders. So EPS growth can certainly encourage an investor to take note of a stock. View our latest analysis for Bel Fuse Bel Fuse's Improving ProfitsĮven modest earnings per share growth (EPS) can create meaningful value, when it is sustained reliably from year to year. Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Bel Fuse ( NASDAQ:BELF.A). A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. ![]()
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