BWX TECHNOLOGIES INC (BWXT) Stock Fundamental Analysis
NYSE:BWXT - New York Stock Exchange, Inc. - US05605H1005 - Common Stock - Currency: USD
Overall BWXT gets a fundamental rating of 6 out of 10. We evaluated BWXT against 65 industry peers in the Aerospace & Defense industry. BWXT has an excellent profitability rating, 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.
BWXT had a positive operating cash flow in the past year.
Each year in the past 5 years BWXT has been profitable.
BWXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BWXT's Return On Assets of 9.46% is amongst the best of the industry. BWXT outperforms 92.31% of its industry peers.
BWXT has a better Return On Equity (26.26%) than 96.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.96%, BWXT belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BWXT is above the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.46% | ||
| ROE | 26.26% | ||
| ROIC | 9.96% |
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
With an excellent Profit Margin value of 10.39%, BWXT belongs to the best of the industry, outperforming 83.08% 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 11.68%. This is in the better half of the industry: BWXT outperforms 75.38% of its industry peers.
In the last couple of years the Operating Margin of BWXT has declined.
Looking at the Gross Margin, with a value of 24.15%, BWXT is in line with its industry, outperforming 49.23% 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 | 11.68% | ||
| PM (TTM) | 10.39% | ||
| GM | 24.15% |
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.
Compared to 1 year ago, BWXT has about the same amount of 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 6.36. This indicates that BWXT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.36, BWXT is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
BWXT has a debt to FCF ratio of 4.45. This is a neutral value as BWXT would need 4.45 years to pay back of all of its debts.
BWXT's Debt to FCF ratio of 4.45 is fine compared to the rest of the industry. BWXT outperforms 72.31% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that BWXT has dependencies on debt financing.
The Debt to Equity ratio of BWXT (1.08) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 6.36 |
ROIC/WACC0.97
WACC10.32%
2.3 Liquidity
BWXT has a Current Ratio of 2.02. This indicates that BWXT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BWXT (2.02) is comparable to the rest of the industry.
BWXT has a Quick Ratio of 1.91. This is a normal value and indicates that BWXT is financially healthy and should not expect problems in meeting its short term obligations.
BWXT has a better Quick ratio (1.91) than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
BWXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.62%, which is quite good.
The Earnings Per Share has been growing slightly by 4.83% on average over the past years.
The Revenue has grown by 9.88% in the past year. This is quite good.
The Revenue has been growing slightly by 7.37% on average over the past years.
EPS 1Y (TTM)12.62%
EPS 3Y2.86%
EPS 5Y4.83%
EPS Q2Q%19.74%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y8.37%
Revenue growth 5Y7.37%
Sales Q2Q%12.96%
3.2 Future
Based on estimates for the next years, BWXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
Based on estimates for the next years, BWXT will show a quite strong growth in Revenue. The Revenue will grow by 8.10% on average per year.
EPS Next Y8.75%
EPS Next 2Y9.35%
EPS Next 3Y10.21%
EPS Next 5Y10.79%
Revenue Next Year14.11%
Revenue Next 2Y11.68%
Revenue Next 3Y10.53%
Revenue Next 5Y8.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.39, the valuation of BWXT can be described as expensive.
Based on the Price/Earnings ratio, BWXT is valued a bit cheaper than 66.15% of the companies in the same industry.
BWXT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 34.42, which means the current valuation is very expensive for BWXT.
BWXT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BWXT to the average of the S&P500 Index (21.76), we can say BWXT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.39 | ||
| Fwd PE | 34.42 |
4.2 Price Multiples
BWXT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BWXT indicates a somewhat cheap valuation: BWXT is cheaper than 67.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.47 | ||
| EV/EBITDA | 32.86 |
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.
PEG (NY)4.5
PEG (5Y)8.15
EPS Next 2Y9.35%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, 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 1.24. BWXT pays more dividend than 81.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, BWXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of BWXT is nicely growing with an annual growth rate of 7.06%!
BWXT has paid a dividend for at least 10 years, which is a reliable track record.
As BWXT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.06%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
BWXT pays out 31.01% 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.
DP31.01%
EPS Next 2Y9.35%
EPS Next 3Y10.21%
137.06
+0.61 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners92.33%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner Change2.59%
Market Cap12.52B
Analysts83.33
Price Target141.09 (2.94%)
Short Float %3.25%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.97
Dividend Growth(5Y)7.06%
DP31.01%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.16%
Min EPS beat(2)10.79%
Max EPS beat(2)19.54%
EPS beat(4)4
Avg EPS beat(4)10.76%
Min EPS beat(4)4.98%
Max EPS beat(4)19.54%
EPS beat(8)8
Avg EPS beat(8)8.62%
EPS beat(12)10
Avg EPS beat(12)6.77%
EPS beat(16)11
Avg EPS beat(16)3.79%
Revenue beat(2)2
Avg Revenue beat(2)2.7%
Min Revenue beat(2)1.62%
Max Revenue beat(2)3.79%
Revenue beat(4)4
Avg Revenue beat(4)2.49%
Min Revenue beat(4)0.04%
Max Revenue beat(4)4.5%
Revenue beat(8)7
Avg Revenue beat(8)3.05%
Revenue beat(12)8
Avg Revenue beat(12)1.35%
Revenue beat(16)9
Avg Revenue beat(16)-0.06%
PT rev (1m)2.67%
PT rev (3m)3.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)1.26%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.39 | ||
| Fwd PE | 34.42 | ||
| P/S | 4.5 | ||
| P/FCF | 46.47 | ||
| P/OCF | 29.39 | ||
| P/B | 11.38 | ||
| P/tB | 22.22 | ||
| EV/EBITDA | 32.86 |
EPS(TTM)3.48
EY2.54%
EPS(NY)3.98
Fwd EY2.91%
FCF(TTM)2.95
FCFY2.15%
OCF(TTM)4.66
OCFY3.4%
SpS30.45
BVpS12.04
TBVpS6.17
PEG (NY)4.5
PEG (5Y)8.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.46% | ||
| ROE | 26.26% | ||
| ROCE | 12.64% | ||
| ROIC | 9.96% | ||
| ROICexc | 10.18% | ||
| ROICexgc | 12.95% | ||
| OM | 11.68% | ||
| PM (TTM) | 10.39% | ||
| GM | 24.15% | ||
| FCFM | 9.69% |
ROA(3y)9.29%
ROA(5y)10.45%
ROE(3y)28.09%
ROE(5y)35.48%
ROIC(3y)10.89%
ROIC(5y)11.51%
ROICexc(3y)11.19%
ROICexc(5y)11.8%
ROICexgc(3y)14.13%
ROICexgc(5y)15.27%
ROCE(3y)13.82%
ROCE(5y)14.77%
ROICexcg growth 3Y-3.82%
ROICexcg growth 5Y-11.02%
ROICexc growth 3Y-2.17%
ROICexc growth 5Y-7.67%
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%
F-Score7
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.45 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 175.51% | ||
| Cap/Sales | 5.63% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 102.88% | ||
| Profit Quality | 93.26% | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 6.36 |
F-Score7
WACC10.32%
ROIC/WACC0.97
Cap/Depr(3y)213.4%
Cap/Depr(5y)302.1%
Cap/Sales(3y)6.87%
Cap/Sales(5y)9.46%
Profit Quality(3y)65.42%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.62%
EPS 3Y2.86%
EPS 5Y4.83%
EPS Q2Q%19.74%
EPS Next Y8.75%
EPS Next 2Y9.35%
EPS Next 3Y10.21%
EPS Next 5Y10.79%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y8.37%
Revenue growth 5Y7.37%
Sales Q2Q%12.96%
Revenue Next Year14.11%
Revenue Next 2Y11.68%
Revenue Next 3Y10.53%
Revenue Next 5Y8.1%
EBIT growth 1Y-4.14%
EBIT growth 3Y2.74%
EBIT growth 5Y1.98%
EBIT Next Year37.38%
EBIT Next 3Y20.42%
EBIT Next 5Y13.45%
FCF growth 1Y338.86%
FCF growth 3Y50.39%
FCF growth 5Y21.23%
OCF growth 1Y79.69%
OCF growth 3Y1.9%
OCF growth 5Y7.89%