BWX TECHNOLOGIES INC (BWXT) Stock Fundamental Analysis
NYSE:BWXT - New York Stock Exchange, Inc. - US05605H1005 - Common Stock - Currency: USD
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 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.
In the past 5 years BWXT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.46%, BWXT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.26%, BWXT belongs to the top of the industry, outperforming 96.92% of the companies in the same industry.
The Return On Invested Capital of BWXT (9.96%) is better than 81.54% of its industry peers.
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
The Profit Margin of BWXT (10.39%) is better than 83.08% of its industry peers.
In the last couple of years the Profit Margin of BWXT has declined.
Looking at the Operating Margin, with a value of 11.68%, BWXT is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
In the last couple of years the Operating Margin of BWXT has declined.
BWXT has a Gross Margin (24.15%) which is comparable to the rest of the industry.
BWXT's Gross Margin has declined in the last couple of years.
| 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
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 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BWXT has less shares outstanding
BWXT has a better debt/assets ratio than last year.
2.2 Solvency
BWXT has an Altman-Z score of 6.48. 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 6.48, BWXT is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
The Debt to FCF ratio of BWXT is 4.45, which is a neutral value as it means it would take BWXT, 4.45 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.45, BWXT is doing good in the industry, outperforming 72.31% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that BWXT has dependencies on debt financing.
BWXT has a Debt to Equity ratio of 1.08. This is in the lower half of the industry: BWXT underperforms 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 6.48 |
ROIC/WACC0.99
WACC10.07%
2.3 Liquidity
A Current Ratio of 2.02 indicates that BWXT has no problem at all paying its short term obligations.
BWXT's Current ratio of 2.02 is in line compared to the rest of the industry. BWXT outperforms 46.15% of its industry peers.
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.
The Quick ratio of BWXT (1.91) is better than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.62% over the past year.
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.
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)12.62%
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
BWXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
BWXT is valuated quite expensively with a Price/Earnings ratio of 41.07.
Based on the Price/Earnings ratio, BWXT is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.28. BWXT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 35.89 indicates a quite expensive valuation of BWXT.
BWXT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. BWXT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.07 | ||
| Fwd PE | 35.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BWXT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BWXT indicates a somewhat cheap valuation: BWXT is cheaper than 66.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.45 | ||
| EV/EBITDA | 33.81 |
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)4.69
PEG (5Y)8.5
EPS Next 2Y9.35%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
BWXT has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 1.27, BWXT pays a better dividend. On top of this BWXT pays more dividend than 81.54% of the companies listed in the same industry.
With a Dividend Yield of 0.70, BWXT pays less dividend than the S&P500 average, which is at 2.42.
| 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
31.01% 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.
DP31.01%
EPS Next 2Y9.35%
EPS Next 3Y10.21%
142.91
+2.14 (+1.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners92.33%
Inst Owner Change0.02%
Ins Owners0.39%
Ins Owner Change2.84%
Market Cap13.06B
Analysts83.33
Price Target141.09 (-1.27%)
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)3.93%
EPS NQ rev (1m)2.01%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)1.26%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-2.14%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.07 | ||
| Fwd PE | 35.89 | ||
| P/S | 4.69 | ||
| P/FCF | 48.45 | ||
| P/OCF | 30.64 | ||
| P/B | 11.87 | ||
| P/tB | 23.17 | ||
| EV/EBITDA | 33.81 |
EPS(TTM)3.48
EY2.44%
EPS(NY)3.98
Fwd EY2.79%
FCF(TTM)2.95
FCFY2.06%
OCF(TTM)4.66
OCFY3.26%
SpS30.45
BVpS12.04
TBVpS6.17
PEG (NY)4.69
PEG (5Y)8.5
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 | 6.48 |
F-Score7
WACC10.07%
ROIC/WACC0.99
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%