Befesa, a high quality business with stable margins of over 20%


Intermoney: A world leader in a sector without competition, with high barriers to entry, with great capacity for price pass-through and benefiting from the global objectives of decarbonisation and transition to electric vehicles.

II. Margins > 20%, which have remained stable, demonstrating its strength in the face of fluctuations in the economic cycle and good profitability (ROCE >15%);

III. Low costs (they charge for their raw material) and sustainable indebtedness (2x Dn/EBITDA), even if it is now temporarily above this level.

IV. High cash generation and low maintenance capex.

V. Great growth potential focused on the Chinese, European and US markets. We also see potential in large steel producers (India, Russia, Middle East, Latam…) in case they start to regulate steel powders.

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About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.