BABCOCK & WILCOX ENTERPR (BW)

US05614L2097 - Common Stock

1.89  -0.08 (-4.06%)

After market: 1.96 +0.07 (+3.7%)

Fundamental Rating

2

Overall BW gets a fundamental rating of 2 out of 10. We evaluated BW against 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.
In the past year BW has reported a negative cash flow from operations.
BW had negative earnings in 4 of the past 5 years.
BW had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -9.25%, BW is in line with its industry, outperforming 57.30% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.02%, BW is doing good in the industry, outperforming 67.42% 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 10.64%.
The 3 year average ROIC (2.71%) for BW is below the current ROIC(3.02%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -9.25%
ROE N/A
ROIC 3.02%
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

BW has a better Operating Margin (2.21%) than 67.42% of its industry peers.
In the last couple of years the Operating Margin of BW has declined.
Looking at the Gross Margin, with a value of 23.73%, BW is in line with its industry, outperforming 53.93% of the companies in the same industry.
BW's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 2.21%
PM (TTM) N/A
GM 23.73%
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BW is destroying value.
Compared to 1 year ago, BW has more shares outstanding
BW has more shares outstanding than it did 5 years ago.
BW has a worse debt/assets ratio than last year.

2.2 Solvency

BW has an Altman-Z score of -1.12. This is a bad value and indicates that BW is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of BW (-1.12) is worse than 64.04% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -1.12
ROIC/WACC0.37
WACC8.17%

2.3 Liquidity

A Current Ratio of 1.78 indicates that BW should not have too much problems paying its short term obligations.
BW's Current ratio of 1.78 is in line compared to the rest of the industry. BW outperforms 47.19% of its industry peers.
A Quick Ratio of 1.39 indicates that BW should not have too much problems paying its short term obligations.
BW has a Quick ratio of 1.39. This is comparable to the rest of the industry: BW outperforms 58.43% of its industry peers.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.39

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2

3. Growth

3.1 Past

The earnings per share for BW have decreased strongly by -168.18% in the last year.
Looking at the last year, BW shows a very negative growth in Revenue. The Revenue has decreased by -16.50% in the last year.
The Revenue has been decreasing by -1.22% on average over the past years.
EPS 1Y (TTM)-168.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.89%
Revenue 1Y (TTM)-16.5%
Revenue growth 3Y20.84%
Revenue growth 5Y-1.22%
Sales Q2Q%-12.32%

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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5

4. Valuation

4.1 Price/Earnings Ratio

BW reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 10.95 indicates a reasonable valuation of BW.
Based on the Price/Forward Earnings ratio, BW is valued cheaper than 88.76% of the companies in the same industry.
BW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
Industry RankSector Rank
PE N/A
Fwd PE 10.95

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BW is valued a bit cheaper than 79.78% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.29

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

No dividends for BW!.
Industry RankSector Rank
Dividend Yield N/A

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BABCOCK & WILCOX ENTERPR

NYSE:BW (11/21/2024, 8:16:35 PM)

After market: 1.96 +0.07 (+3.7%)

1.89

-0.08 (-4.06%)

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 Cap178.26M
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 10.95
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 -9.25%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 2.21%
PM (TTM) N/A
GM 23.73%
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 Turnover1.09
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.78
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)-168.18%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y114.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.5%
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