Bekaert: A Surprise Dividend Hike

(8min)

Summary

  • Bekaert's 2024 results were robust, with a reported net profit of 238.9M EUR and a free cash flow yield in the mid-teens range.
  • The company announced a 6% dividend increase and is executing a 200M EUR share repurchase program, reducing the share count to below 50M.
  • Despite no expected growth in 2025, Bekaert's strong free cash flow and low net debt to EBITDA ratio of 0.5 make it a solid investment.
  • Trading at an EV/EBITDA ratio of around 5, Bekaert's market cap is 1.9B EUR, making it an attractive opportunity to expand my position.
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Introduction

Back in July 2024, I mentioned Bekaert (OTCPK:BEKSF) (OTCPK:BEKAY) offered an appealing 13% free cash flow yield, although last year was a transition year. Now that world trade has been complicated, I don’t expect any improvement in

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This article was written by

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BEKAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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