BWX TECHNOLOGIES INC (BWXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BWXT - US05605H1005 - Common Stock
206.04 USD
-1.71 (-0.82%)
206.15 USD
+0.11 (+0.05%)
We assign a fundamental rating of 6 out of 10 to BWXT. BWXT was compared to 73 industry peers in the Aerospace & Defense industry. BWXT has an average financial health and profitability rating. BWXT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BWXT was profitable.
- In the past year BWXT had a positive cash flow from operations.
- In the past 5 years BWXT has always been profitable.
- BWXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BWXT has a Return On Assets of 8.12%. This is amongst the best in the industry. BWXT outperforms 83.56% of its industry peers.
- BWXT has a Return On Equity of 24.72%. This is amongst the best in the industry. BWXT outperforms 91.78% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.36%, BWXT is in the better half of the industry, outperforming 73.97% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for BWXT is above the industry average of 8.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 24.72% | ||
| ROIC | 8.36% |
ROA(3y)9.29%
ROA(5y)10.45%
ROE(3y)28.09%
ROE(5y)35.48%
ROIC(3y)10.89%
ROIC(5y)11.51%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.04%, BWXT belongs to the top of the industry, outperforming 80.82% of the companies in the same industry.
- BWXT's Profit Margin has declined in the last couple of years.
- BWXT's Operating Margin of 10.87% is fine compared to the rest of the industry. BWXT outperforms 73.97% of its industry peers.
- BWXT's Operating Margin has declined in the last couple of years.
- BWXT has a Gross Margin of 23.54%. This is comparable to the rest of the industry: BWXT outperforms 49.32% of its industry peers.
- BWXT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.87% | ||
| PM (TTM) | 10.04% | ||
| GM | 23.54% |
OM growth 3Y-5.2%
OM growth 5Y-5.02%
PM growth 3Y-10.2%
PM growth 5Y-4.14%
GM growth 3Y-2.2%
GM growth 5Y-2.93%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BWXT is still creating some value.
- The number of shares outstanding for BWXT remains at a similar level compared to 1 year ago.
- 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
- An Altman-Z score of 6.64 indicates that BWXT is not in any danger for bankruptcy at the moment.
- BWXT has a Altman-Z score of 6.64. This is in the better half of the industry: BWXT outperforms 63.01% of its industry peers.
- The Debt to FCF ratio of BWXT is 3.27, which is a good value as it means it would take BWXT, 3.27 years of fcf income to pay off all of its debts.
- BWXT has a better Debt to FCF ratio (3.27) than 82.19% of its industry peers.
- BWXT has a Debt/Equity ratio of 1.21. This is a high value indicating a heavy dependency on external financing.
- BWXT's Debt to Equity ratio of 1.21 is on the low side compared to the rest of the industry. BWXT is outperformed by 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 6.64 |
ROIC/WACC0.83
WACC10.09%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that BWXT should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.71, BWXT is not doing good in the industry: 64.38% of the companies in the same industry are doing better.
- A Quick Ratio of 1.62 indicates that BWXT should not have too much problems paying its short term obligations.
- The Quick ratio of BWXT (1.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
- BWXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.57%, which is quite good.
- BWXT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.83% yearly.
- BWXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.01%.
- Measured over the past years, BWXT shows a small growth in Revenue. The Revenue has been growing by 7.37% on average per year.
EPS 1Y (TTM)12.57%
EPS 3Y2.86%
EPS 5Y4.83%
EPS Q2Q%20.48%
Revenue 1Y (TTM)14.01%
Revenue growth 3Y8.37%
Revenue growth 5Y7.37%
Sales Q2Q%28.92%
3.2 Future
- The Earnings Per Share is expected to grow by 12.94% on average over the next years. This is quite good.
- Based on estimates for the next years, BWXT will show a quite strong growth in Revenue. The Revenue will grow by 11.38% on average per year.
EPS Next Y16.95%
EPS Next 2Y14.44%
EPS Next 3Y14.7%
EPS Next 5Y12.94%
Revenue Next Year17.7%
Revenue Next 2Y17.05%
Revenue Next 3Y14.26%
Revenue Next 5Y11.38%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 53.52, which means the current valuation is very expensive for BWXT.
- The rest of the industry has a similar Price/Earnings ratio as BWXT.
- When comparing the Price/Earnings ratio of BWXT to the average of the S&P500 Index (27.25), we can say BWXT is valued expensively.
- The Price/Forward Earnings ratio is 47.24, which means the current valuation is very expensive for BWXT.
- BWXT's Price/Forward Earnings is on the same level as the industry average.
- BWXT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.52 | ||
| Fwd PE | 47.24 |
4.2 Price Multiples
- BWXT's Enterprise Value to EBITDA is on the same level as the industry average.
- 79.45% of the companies in the same industry are more expensive than BWXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.82 | ||
| EV/EBITDA | 46.95 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- BWXT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as BWXT's earnings are expected to grow with 14.70% in the coming years.
PEG (NY)3.16
PEG (5Y)11.07
EPS Next 2Y14.44%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
- BWXT has a yearly dividend return of 0.48%, which is pretty low.
- BWXT's Dividend Yield is rather good when compared to the industry average which is at 0.34. BWXT pays more dividend than 82.19% of the companies in the same industry.
- With a Dividend Yield of 0.48, BWXT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
- On average, the dividend of BWXT grows each year by 7.06%, which is quite nice.
- 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)7.06%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- BWXT pays out 29.88% of its income as dividend. This is a sustainable payout ratio.
- The dividend of BWXT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.88%
EPS Next 2Y14.44%
EPS Next 3Y14.7%
BWX TECHNOLOGIES INC / BWXT FAQ
What is the ChartMill fundamental rating of BWX TECHNOLOGIES INC (BWXT) stock?
ChartMill assigns a fundamental rating of 6 / 10 to BWXT.
What is the valuation status of BWX TECHNOLOGIES INC (BWXT) stock?
ChartMill assigns a valuation rating of 3 / 10 to BWX TECHNOLOGIES INC (BWXT). This can be considered as Overvalued.
How profitable is BWX TECHNOLOGIES INC (BWXT) stock?
BWX TECHNOLOGIES INC (BWXT) has a profitability rating of 6 / 10.
How financially healthy is BWX TECHNOLOGIES INC?
The financial health rating of BWX TECHNOLOGIES INC (BWXT) is 6 / 10.
Can you provide the dividend sustainability for BWXT stock?
The dividend rating of BWX TECHNOLOGIES INC (BWXT) is 6 / 10 and the dividend payout ratio is 29.88%.