BABCOCK & WILCOX ENTERPR (BW)

US05614L2097 - Common Stock

2.53  -0.1 (-3.8%)

Premarket: 2.2 -0.33 (-13.04%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to BW. BW was compared to 91 industry peers in the Electrical Equipment industry. Both the profitability and financial health of BW have multiple concerns. BW has a valuation in line with the averages, but on the other hand it scores bad on growth.



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2

1. Profitability

1.1 Basic Checks

In the past year BW has reported negative net income.
BW had a negative operating cash flow in the past year.
BW had negative earnings in 4 of the past 5 years.
In the past 5 years BW always reported negative operating cash flow.

1.2 Ratios

BW has a Return On Assets of -21.90%. This is comparable to the rest of the industry: BW outperforms 46.67% of its industry peers.
With a decent Return On Invested Capital value of 3.31%, BW is doing good in the industry, outperforming 68.89% of the companies in the same industry.
BW had an Average Return On Invested Capital over the past 3 years of 2.71%. This is significantly below the industry average of 10.82%.
The last Return On Invested Capital (3.31%) for BW is above the 3 year average (2.71%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -21.9%
ROE N/A
ROIC 3.31%
ROA(3y)-9.65%
ROA(5y)-10.03%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)2.71%
ROIC(5y)2.91%

1.3 Margins

The Operating Margin of BW (2.37%) is better than 66.67% of its industry peers.
BW's Operating Margin has declined in the last couple of years.
BW has a Gross Margin of 23.35%. This is comparable to the rest of the industry: BW outperforms 53.33% of its industry peers.
In the last couple of years the Gross Margin of BW has declined.
Industry RankSector Rank
OM 2.37%
PM (TTM) N/A
GM 23.35%
OM growth 3Y-8.73%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.53%
GM growth 5YN/A

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1

2. Health

2.1 Basic Checks

BW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BW has more shares outstanding
The number of shares outstanding for BW has been increased compared to 5 years ago.
The debt/assets ratio for BW is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of -0.96, we must say that BW is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.96, BW is not doing good in the industry: 64.44% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.96
ROIC/WACC0.38
WACC8.81%

2.3 Liquidity

A Current Ratio of 1.72 indicates that BW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.72, BW perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
BW has a Quick Ratio of 1.39. This is a normal value and indicates that BW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BW (1.39) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 1.39

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2

3. Growth

3.1 Past

BW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -150.00%.
BW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.63%.
BW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.22% yearly.
EPS 1Y (TTM)-150%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y20.84%
Revenue growth 5Y-1.22%
Sales Q2Q%-23.46%

3.2 Future

BW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.57% yearly.
Based on estimates for the next years, BW will show a decrease in Revenue. The Revenue will decrease by -0.59% on average per year.
EPS Next Y114.85%
EPS Next 2Y46.81%
EPS Next 3Y35.57%
EPS Next 5YN/A
Revenue Next Year-12.08%
Revenue Next 2Y-2.95%
Revenue Next 3Y-0.59%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4

4. Valuation

4.1 Price/Earnings Ratio

BW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
BW is valuated correctly with a Price/Forward Earnings ratio of 14.66.
82.22% of the companies in the same industry are more expensive than BW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, BW is valued a bit cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 14.66

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BW is valued a bit cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.96

4.3 Compensation for Growth

BW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BW's earnings are expected to grow with 35.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.81%
EPS Next 3Y35.57%

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0

5. Dividend

5.1 Amount

BW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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BABCOCK & WILCOX ENTERPR

NYSE:BW (11/12/2024, 8:04:01 PM)

Premarket: 2.2 -0.33 (-13.04%)

2.53

-0.1 (-3.8%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap233.27M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 14.66
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -21.9%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 2.37%
PM (TTM) N/A
GM 23.35%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.72
Quick Ratio 1.39
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-150%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y114.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y20.84%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y