UN - Bekaert: Refinancing Debt With Declining EBITDA And Free Cash Flow Will Be Tough
Introduction
Belgium's Bekaert (BEKSF) (BEKAY) used to be one of the European market's favorite investments to gain exposure to emerging markets due to its worldwide presence in steel wire production. Right after the Global Financial Crisis, its share price increased by 600% within 18 months but has been on a relatively downtrend since.
There are three contributing factors to the negative sentiment surrounding Bekaert: The company needs to tackle in excess of 1B EUR in net debt while its EBITDA and free cash flow results are decreasing, the low interest environment