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. While BWXT belongs to the best of the industry regarding profitability, 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
Looking at the Return On Assets, with a value of 9.39%, BWXT belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
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's Return On Invested Capital of 10.95% is amongst the best of 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 7.69%.
The last Return On Invested Capital (10.95%) for BWXT is above the 3 year average (10.82%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 10.32%, BWXT is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
In the last couple of years the Profit Margin of BWXT has declined.
The Operating Margin of BWXT (13.43%) is better than 83.08% of its industry peers.
BWXT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 24.95%, BWXT is in line with its industry, outperforming 55.38% of the companies in the same industry.
In the last couple of years the Gross Margin of BWXT has declined.
| 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.
The number of shares outstanding for BWXT has been increased 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
BWXT has an Altman-Z score of 5.89. This indicates that BWXT is financially healthy and has little risk of bankruptcy at the moment.
BWXT's Altman-Z score of 5.89 is fine compared to the rest of the industry. BWXT outperforms 78.46% 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 has a Debt to FCF ratio of 6.11. This is in the better half of the industry: BWXT outperforms 67.69% 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 has a worse Debt to Equity ratio (1.15) than 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 5.89 |
ROIC/WACC1.16
WACC9.47%
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 58.46% 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 78.46% 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.
The Earnings Per Share has been growing slightly by 4.86% on average over the past years.
Looking at the last year, BWXT shows a quite strong growth in Revenue. The Revenue has grown by 12.02% in the last year.
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
The Earnings Per Share is expected to grow by 10.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.98% on average over the next years.
EPS Next Y8.39%
EPS Next 2Y7.4%
EPS Next 3Y9.66%
EPS Next 5Y10.19%
Revenue Next Year10.37%
Revenue Next 2Y8.31%
Revenue Next 3Y7.1%
Revenue Next 5Y6.98%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.12, which means the current valuation is very expensive for BWXT.
67.69% of the companies in the same industry are more expensive than BWXT, based on the Price/Earnings ratio.
BWXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.41, the valuation of BWXT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWXT is on the same level as its industry peers.
BWXT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 32.41 |
4.2 Price Multiples
BWXT's Enterprise Value to EBITDA ratio is in line with the industry average.
BWXT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BWXT is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.42 | ||
| EV/EBITDA | 26.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BWXT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BWXT may justify a higher PE ratio.
PEG (NY)3.95
PEG (5Y)6.82
EPS Next 2Y7.4%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
BWXT has a yearly dividend return of 0.85%, which is pretty low.
BWXT's Dividend Yield is rather good when compared to the industry average which is at 1.42. BWXT pays more dividend than 83.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BWXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
On average, the dividend of BWXT grows each year by 7.23%, 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)7.23%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
31.57% of the earnings are spent on dividend by BWXT. This is a low number and sustainable payout ratio.
BWXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.57%
EPS Next 2Y7.4%
EPS Next 3Y9.66%
BWX TECHNOLOGIES INC
NYSE:BWXT (12/20/2024, 8:04:01 PM)
After market: 114 +0.72 (+0.64%)113.28
+0.32 (+0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners94.53%
Inst Owner Change-0.57%
Ins Owners0.34%
Ins Owner Change0.78%
Market Cap10.36B
Analysts81.18
Price Target134.55 (18.78%)
Short Float %1.42%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)7.23%
DP31.57%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.98%
Max EPS beat(2)7.73%
EPS beat(4)4
Avg EPS beat(4)6.86%
Min EPS beat(4)4.98%
Max EPS beat(4)7.95%
EPS beat(8)7
Avg EPS beat(8)6.17%
EPS beat(12)9
Avg EPS beat(12)4.33%
EPS beat(16)11
Avg EPS beat(16)2.06%
Revenue beat(2)2
Avg Revenue beat(2)2.27%
Min Revenue beat(2)0.04%
Max Revenue beat(2)4.5%
Revenue beat(4)3
Avg Revenue beat(4)2.78%
Min Revenue beat(4)-1.3%
Max Revenue beat(4)7.87%
Revenue beat(8)5
Avg Revenue beat(8)1.76%
Revenue beat(12)7
Avg Revenue beat(12)0.63%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)15.07%
PT rev (3m)20.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.68%
EPS NY rev (1m)0.52%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.12 | ||
| Fwd PE | 32.41 | ||
| P/S | 3.86 | ||
| P/FCF | 51.42 | ||
| P/OCF | 29.31 | ||
| P/B | 9.78 | ||
| P/tB | 17.6 | ||
| EV/EBITDA | 26.02 |
EPS(TTM)3.42
EY3.02%
EPS(NY)3.49
Fwd EY3.09%
FCF(TTM)2.2
FCFY1.94%
OCF(TTM)3.86
OCFY3.41%
SpS29.34
BVpS11.58
TBVpS6.43
PEG (NY)3.95
PEG (5Y)6.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.39% | ||
| ROE | 26.15% | ||
| ROCE | 14.36% | ||
| ROIC | 10.95% | ||
| ROICexc | 11.11% | ||
| ROICexgc | 13.71% | ||
| OM | 13.43% | ||
| PM (TTM) | 10.32% | ||
| GM | 24.95% | ||
| FCFM | 7.51% |
ROA(3y)10.09%
ROA(5y)11.04%
ROE(3y)35.39%
ROE(5y)42.34%
ROIC(3y)10.82%
ROIC(5y)12.07%
ROICexc(3y)11.07%
ROICexc(5y)12.48%
ROICexgc(3y)14.23%
ROICexgc(5y)16.91%
ROCE(3y)14.19%
ROCE(5y)15.99%
ROICexcg growth 3Y-7.59%
ROICexcg growth 5Y-13.12%
ROICexc growth 3Y-5.39%
ROICexc growth 5Y-8.08%
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%
F-Score8
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 181.29% | ||
| Cap/Sales | 5.66% | ||
| Interest Coverage | 5.39 | ||
| Cash Conversion | 79.56% | ||
| Profit Quality | 72.77% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 5.89 |
F-Score8
WACC9.47%
ROIC/WACC1.16
Cap/Depr(3y)303.83%
Cap/Depr(5y)325.34%
Cap/Sales(3y)9.86%
Cap/Sales(5y)10.24%
Profit Quality(3y)43.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.93%
EPS 3Y0%
EPS 5Y4.86%
EPS Q2Q%23.88%
EPS Next Y8.39%
EPS Next 2Y7.4%
EPS Next 3Y9.66%
EPS Next 5Y10.19%
Revenue 1Y (TTM)12.02%
Revenue growth 3Y5.54%
Revenue growth 5Y6.76%
Sales Q2Q%13.89%
Revenue Next Year10.37%
Revenue Next 2Y8.31%
Revenue Next 3Y7.1%
Revenue Next 5Y6.98%
EBIT growth 1Y13.45%
EBIT growth 3Y2.49%
EBIT growth 5Y3.9%
EBIT Next Year28.66%
EBIT Next 3Y16.49%
EBIT Next 5Y12.32%
FCF growth 1Y127.87%
FCF growth 3YN/A
FCF growth 5Y28.77%
OCF growth 1Y18.81%
OCF growth 3Y22.8%
OCF growth 5Y16.52%