Why NYSE:BWXT is a Top Pick for Dividend Investors.

Unearth the potential of BWX TECHNOLOGIES INC (NYSE:BWXT) as a dividend stock recommended by our stock screening tool. NYSE:BWXT maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Unpacking NYSE:BWXT's Dividend Rating

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:BWXT has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.35, BWXT pays a better dividend. On top of this BWXT pays more dividend than 82.81% of the companies listed in the same industry.
• The dividend of BWXT is nicely growing with an annual growth rate of 7.23%!
• BWXT has been paying a dividend for at least 10 years, so it has a reliable track record.
• BWXT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
• 33.83% of the earnings are spent on dividend by BWXT. This is a low number and sustainable payout ratio.
• The dividend of BWXT is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:BWXT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:BWXT has received a 6 out of 10:

• BWXT has an Altman-Z score of 5.43. This indicates that BWXT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.43, BWXT belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
• BWXT has a Debt to FCF ratio of 4.77. This is in the better half of the industry: BWXT outperforms 73.44% of its industry peers.
• A Current Ratio of 2.24 indicates that BWXT has no problem at all paying its short term obligations.
• BWXT has a Quick Ratio of 2.13. This indicates that BWXT is financially healthy and has no problem in meeting its short term obligations.
• BWXT has a Quick ratio of 2.13. This is in the better half of the industry: BWXT outperforms 78.13% of its industry peers.

Evaluating Profitability: NYSE:BWXT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BWXT was assigned a score of 7 for profitability:

• The Return On Assets of BWXT (9.08%) is better than 89.06% of its industry peers.
• BWXT has a Return On Equity of 26.76%. This is amongst the best in the industry. BWXT outperforms 96.88% of its industry peers.
• BWXT's Return On Invested Capital of 10.77% is amongst the best of the industry. BWXT outperforms 90.63% of its industry peers.
• BWXT had an Average Return On Invested Capital over the past 3 years of 10.82%. This is above the industry average of 8.10%.
• BWXT has a better Profit Margin (10.00%) than 78.13% of its industry peers.
• BWXT has a better Operating Margin (13.39%) than 82.81% of its industry peers.

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Check the latest full fundamental report of BWXT for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.