BWX TECHNOLOGIES INC (BWXT)
US05605H1005 - Common Stock
We assign a fundamental rating of 6 out of 10 to BWXT. BWXT was compared to 65 industry peers in the Aerospace & Defense industry. BWXT scores excellent on profitability, but there are some minor concerns on its financial health. BWXT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BWXT had positive earnings in the past year.
In the past year BWXT had a positive cash flow from operations.
BWXT had positive earnings in each of the past 5 years.
Each year in the past 5 years BWXT had a positive operating cash flow.
1.2 Ratios
BWXT has a better Return On Assets (9.39%) than 87.69% of its industry peers.
With an excellent Return On Equity value of 26.15%, BWXT belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
BWXT has a Return On Invested Capital of 10.95%. This is amongst the best in the industry. BWXT outperforms 90.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BWXT is above the industry average of 7.71%.
The 3 year average ROIC (10.82%) for BWXT is below the current ROIC(10.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 26.15% | ||
| ROIC | 10.95% |
ROA(3y)10.09%
ROA(5y)11.04%
ROE(3y)35.39%
ROE(5y)42.34%
ROIC(3y)10.82%
ROIC(5y)12.07%
1.3 Margins
With a decent Profit Margin value of 10.32%, BWXT is doing good in the industry, outperforming 78.46% of the companies in the same industry.
BWXT's Profit Margin has declined in the last couple of years.
BWXT has a Operating Margin of 13.43%. This is amongst the best in the industry. BWXT outperforms 83.08% of its industry peers.
BWXT's Operating Margin has declined in the last couple of years.
BWXT's Gross Margin of 24.95% is in line compared to the rest of the industry. BWXT outperforms 53.85% of its industry peers.
BWXT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.43% | ||
| PM (TTM) | 10.32% | ||
| GM | 24.95% |
OM growth 3Y-2.89%
OM growth 5Y-2.68%
PM growth 3Y-9.13%
PM growth 5Y-4.83%
GM growth 3Y-2.83%
GM growth 5Y-2.37%
2. Health
2.1 Basic Checks
BWXT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BWXT has more shares outstanding
BWXT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BWXT has been reduced compared to a year ago.
2.2 Solvency
BWXT has an Altman-Z score of 6.37. This indicates that BWXT is financially healthy and has little risk of bankruptcy at the moment.
BWXT has a better Altman-Z score (6.37) than 81.54% of its industry peers.
The Debt to FCF ratio of BWXT is 6.11, which is on the high side as it means it would take BWXT, 6.11 years of fcf income to pay off all of its debts.
BWXT's Debt to FCF ratio of 6.11 is fine compared to the rest of the industry. BWXT outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that BWXT has dependencies on debt financing.
BWXT's Debt to Equity ratio of 1.15 is on the low side compared to the rest of the industry. BWXT is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 6.37 |
ROIC/WACC1.26
WACC8.72%
2.3 Liquidity
BWXT has a Current Ratio of 2.25. This indicates that BWXT is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.25, BWXT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that BWXT has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.16, BWXT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
BWXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.93%, which is quite good.
Measured over the past 5 years, BWXT shows a small growth in Earnings Per Share. The EPS has been growing by 4.86% on average per year.
BWXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.02%.
Measured over the past years, BWXT shows a small growth in Revenue. The Revenue has been growing by 6.76% on average per year.
EPS 1Y (TTM)15.93%
EPS 3Y0%
EPS 5Y4.86%
EPS Q2Q%23.88%
Revenue 1Y (TTM)12.02%
Revenue growth 3Y5.54%
Revenue growth 5Y6.76%
Sales Q2Q%13.89%
3.2 Future
BWXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.82% yearly.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y7.83%
EPS Next 2Y7.17%
EPS Next 3Y10.23%
EPS Next 5Y11.82%
Revenue Next Year10.17%
Revenue Next 2Y7.92%
Revenue Next 3Y7.13%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.14, the valuation of BWXT can be described as expensive.
63.08% of the companies in the same industry are more expensive than BWXT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.65, BWXT is valued a bit more expensive.
With a Price/Forward Earnings ratio of 38.46, BWXT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWXT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, BWXT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.14 | ||
| Fwd PE | 38.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BWXT is on the same level as its industry peers.
BWXT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.76 | ||
| EV/EBITDA | 29.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BWXT may justify a higher PE ratio.
PEG (NY)5
PEG (5Y)8.05
EPS Next 2Y7.17%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, BWXT is not a good candidate for dividend investing.
BWXT's Dividend Yield is rather good when compared to the industry average which is at 1.49. BWXT pays more dividend than 81.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, BWXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of BWXT is nicely growing with an annual growth rate of 7.23%!
BWXT has paid a dividend for at least 10 years, which is a reliable track record.
BWXT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.23%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
31.57% 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.
DP31.57%
EPS Next 2Y7.17%
EPS Next 3Y10.23%
BWX TECHNOLOGIES INC
NYSE:BWXT (11/21/2024, 2:43:57 PM)
133.855
+4.09 (+3.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.14 | ||
| Fwd PE | 38.46 | ||
| 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)5
PEG (5Y)8.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 26.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.43% | ||
| PM (TTM) | 10.32% | ||
| GM | 24.95% | ||
| 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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.16 | ||
| 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)15.93%
EPS 3Y0%
EPS 5Y
EPS Q2Q%
EPS Next Y7.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.02%
Revenue growth 3Y5.54%
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