Bel Fuse Inc. Class A Common Stock (BELFA)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Bel Fuse is the kind of steady industrial technology supplier I can understand: it sells power, protection and connectivity components into networking, telecom, computing, aerospace, defense and transportation. By the supplied Lynch category it is a STALWART, with the given reason of steady growth: profit up 36.9% a year over five years and revenue up 7.7%. But the recent record is mixed. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $210.7M and net income was $25.5M. In fiscal Q2 2025 (the quarter ended 2025-06-30), revenue was $168.3M and net income was $26.9M. Sales rose, but profit fell. For FY2025 (the year ended 2025-12-31), revenue was $675.5M and net income was $61.5M, still below FY2023 (the year ended 2023-12-31) net income of $73.8M despite higher sales. That tells me pricing and mix matter, and the competitive moat is not obvious. Financial health is a strength: debt/equity is 0.03, Altman Z is 8.84, and trailing free cash flow is $73.3M. Yet returns are only moderate - ROE 10.41% and ROCE 6.87% - and the FCF yield is just 2.3%. Valuation is the rub. At the 2026-10-13 close of $187.97, FairStock's P/E is 48.20, P/B is 2.98, and EV/EBITDA is 22.23. Its Graham Number is $74.34, implying a margin of safety of -152.85%. I want to buy a stalwart at a fair or discount price, not pay a growth price for declining profits. Unless returns on capital and profit growth reaccelerate, I see more risk than margin of safety here.

In plain English: Bel Fuse makes electronic components that power, protect and connect circuits for networking, telecom, computing, aerospace, defense and transportation. The company is profitable and has very little debt, but profits have slipped lately even as sales have grown. At the recent share price, the stock looks expensive compared with the company's earnings, book value and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer