BABCOCK & WILCOX ENTERPR (BW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BW - US05614L2097 - Common Stock
6.34 USD
+0.07 (+1.12%)
6.25 USD
-0.09 (-1.42%)
Taking everything into account, BW scores 2 out of 10 in our fundamental rating. BW was compared to 91 industry peers in the Electrical Equipment industry. BW may be in some trouble as it scores bad on both profitability and health. BW does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year BW has reported negative net income.
BW had a negative operating cash flow in the past year.
In the past 5 years BW reported 4 times negative net income.
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 -18.78%, BW is in line with its industry, outperforming 48.35% of the companies in the same industry.
BW has a better Return On Invested Capital (11.77%) than 89.01% of its industry peers.
BW had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 9.90%.
The last Return On Invested Capital (11.77%) for BW is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.78% | ||
| ROE | N/A | ||
| ROIC | 11.77% |
ROA(3y)-13.87%
ROA(5y)-8.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.67%
ROIC(5y)3.7%
1.3 Margins
BW has a better Operating Margin (7.08%) than 73.63% of its industry peers.
BW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.77%, BW perfoms like the industry average, outperforming 56.04% of the companies in the same industry.
In the last couple of years the Gross Margin of BW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 26.77% |
OM growth 3Y9.27%
OM growth 5Y41.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.18%
GM growth 5Y5.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BW is still creating some value.
Compared to 1 year ago, BW has more shares outstanding
Compared to 5 years ago, BW has more shares outstanding
The debt/assets ratio for BW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -1.99, we must say that BW is in the distress zone and has some risk of bankruptcy.
BW has a worse Altman-Z score (-1.99) than 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.99 |
ROIC/WACC1.5
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.20 indicates that BW should not have too much problems paying its short term obligations.
BW has a Current ratio of 1.20. This is in the lower half of the industry: BW underperforms 65.93% of its industry peers.
A Quick Ratio of 1.04 indicates that BW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, BW is in line with its industry, outperforming 48.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for BW have decreased by -3.68% in the last year.
BW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.45%.
Measured over the past years, BW shows a decrease in Revenue. The Revenue has been decreasing by -3.54% on average per year.
EPS 1Y (TTM)-3.68%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3344.44%
Revenue 1Y (TTM)-38.45%
Revenue growth 3Y-0.28%
Revenue growth 5Y-3.54%
Sales Q2Q%-29.01%
3.2 Future
BW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.73% yearly.
The Revenue is expected to decrease by -4.06% on average over the next years.
EPS Next Y47.59%
EPS Next 2Y40.86%
EPS Next 3Y28.73%
EPS Next 5YN/A
Revenue Next Year-28.12%
Revenue Next 2Y-13.19%
Revenue Next 3Y-4.06%
Revenue Next 5YN/A
3.3 Evolution
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 negative for BW. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BW. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BW is valued a bit cheaper than the industry average as 72.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.45 |
4.3 Compensation for Growth
A more expensive valuation may be justified as BW's earnings are expected to grow with 28.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.86%
EPS Next 3Y28.73%
5. Dividend
5.1 Amount
BW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
6.34
+0.07 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners69.32%
Inst Owner Change27.91%
Ins Owners3.06%
Ins Owner Change6.06%
Market Cap704.37M
Revenue(TTM)540.53M
Net Income(TTM)-123.55M
Analysts81.82
Price Target8.5 (34.07%)
Short Float %2.3%
Short Ratio0.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP-12.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-66.18%
Min EPS beat(2)-579.61%
Max EPS beat(2)447.26%
EPS beat(4)2
Avg EPS beat(4)-1223.08%
Min EPS beat(4)-4779.86%
Max EPS beat(4)447.26%
EPS beat(8)3
Avg EPS beat(8)-1249.61%
EPS beat(12)3
Avg EPS beat(12)-899.66%
EPS beat(16)4
Avg EPS beat(16)-690.07%
Revenue beat(2)0
Avg Revenue beat(2)-13.31%
Min Revenue beat(2)-19.61%
Max Revenue beat(2)-7.01%
Revenue beat(4)1
Avg Revenue beat(4)-6.73%
Min Revenue beat(4)-19.61%
Max Revenue beat(4)8.19%
Revenue beat(8)1
Avg Revenue beat(8)-7.44%
Revenue beat(12)4
Avg Revenue beat(12)-2.82%
Revenue beat(16)6
Avg Revenue beat(16)-2.21%
PT rev (1m)51.51%
PT rev (3m)212.5%
EPS NQ rev (1m)-449.77%
EPS NQ rev (3m)-1201.2%
EPS NY rev (1m)40.22%
EPS NY rev (3m)40.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.68%
Revenue NY rev (1m)-3.88%
Revenue NY rev (3m)-3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.45 |
EPS(TTM)-1.1
EYN/A
EPS(NY)-0.02
Fwd EYN/A
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)-0.8
OCFYN/A
SpS4.87
BVpS-2.09
TBVpS-2.71
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.78% | ||
| ROE | N/A | ||
| ROCE | 14.9% | ||
| ROIC | 11.77% | ||
| ROICexc | 11.77% | ||
| ROICexgc | 16.12% | ||
| OM | 7.08% | ||
| PM (TTM) | N/A | ||
| GM | 26.77% | ||
| FCFM | N/A |
ROA(3y)-13.87%
ROA(5y)-8.19%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.67%
ROIC(5y)3.7%
ROICexc(3y)4.08%
ROICexc(5y)4.44%
ROICexgc(3y)6%
ROICexgc(5y)6.49%
ROCE(3y)4.64%
ROCE(5y)4.69%
ROICexgc growth 3Y18.44%
ROICexgc growth 5Y33.31%
ROICexc growth 3Y21.33%
ROICexc growth 5Y31.59%
OM growth 3Y9.27%
OM growth 5Y41.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.18%
GM growth 5Y5.75%
F-Score3
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.61 | ||
| Cap/Depr | 126.41% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 1.13 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | -1.99 |
F-Score3
WACC7.87%
ROIC/WACC1.5
Cap/Depr(3y)56.25%
Cap/Depr(5y)50.83%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.68%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%3344.44%
EPS Next Y47.59%
EPS Next 2Y40.86%
EPS Next 3Y28.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-38.45%
Revenue growth 3Y-0.28%
Revenue growth 5Y-3.54%
Sales Q2Q%-29.01%
Revenue Next Year-28.12%
Revenue Next 2Y-13.19%
Revenue Next 3Y-4.06%
Revenue Next 5YN/A
EBIT growth 1Y142.35%
EBIT growth 3Y8.96%
EBIT growth 5Y36.41%
EBIT Next Year-3.6%
EBIT Next 3Y12.38%
EBIT Next 5YN/A
FCF growth 1Y-259.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-550.19%
OCF growth 3YN/A
OCF growth 5YN/A
BABCOCK & WILCOX ENTERPR / BW FAQ
What is the ChartMill fundamental rating of BABCOCK & WILCOX ENTERPR (BW) stock?
ChartMill assigns a fundamental rating of 2 / 10 to BW.
What is the valuation status of BABCOCK & WILCOX ENTERPR (BW) stock?
ChartMill assigns a valuation rating of 1 / 10 to BABCOCK & WILCOX ENTERPR (BW). This can be considered as Overvalued.
What is the profitability of BW stock?
BABCOCK & WILCOX ENTERPR (BW) has a profitability rating of 3 / 10.
How financially healthy is BABCOCK & WILCOX ENTERPR?
The financial health rating of BABCOCK & WILCOX ENTERPR (BW) is 1 / 10.
Is the dividend of BABCOCK & WILCOX ENTERPR sustainable?
The dividend rating of BABCOCK & WILCOX ENTERPR (BW) is 0 / 10 and the dividend payout ratio is -12.26%.