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 5 out of 10 to BWXT. BWXT was compared to 67 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of BWXT get a neutral evaluation. Nothing too spectacular is happening here. 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.
BWXT had positive earnings in each of the past 5 years.
BWXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BWXT has a better Return On Assets (7.96%) than 88.06% of its industry peers.
BWXT has a better Return On Equity (24.86%) than 94.03% of its industry peers.
BWXT's Return On Invested Capital of 8.15% is fine compared to the rest of the industry. BWXT outperforms 70.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BWXT is above the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.96% | ||
| ROE | 24.86% | ||
| ROIC | 8.15% |
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
BWXT's Profit Margin of 10.28% is amongst the best of the industry. BWXT outperforms 82.09% of its industry peers.
In the last couple of years the Profit Margin of BWXT has declined.
BWXT's Operating Margin of 11.23% is fine compared to the rest of the industry. BWXT outperforms 76.12% of its industry peers.
BWXT's Operating Margin has declined in the last couple of years.
BWXT has a Gross Margin (24.26%) 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 | 11.23% | ||
| PM (TTM) | 10.28% | ||
| GM | 24.26% |
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.
BWXT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BWXT has less shares outstanding
Compared to 1 year ago, BWXT has an improved debt to assets ratio.
2.2 Solvency
BWXT has an Altman-Z score of 5.91. This indicates that BWXT is financially healthy and has little risk of bankruptcy at the moment.
BWXT's Altman-Z score of 5.91 is fine compared to the rest of the industry. BWXT outperforms 67.16% of its industry peers.
BWXT has a debt to FCF ratio of 4.25. This is a neutral value as BWXT would need 4.25 years to pay back of all of its debts.
BWXT has a Debt to FCF ratio of 4.25. This is in the better half of the industry: BWXT outperforms 79.10% of its industry peers.
BWXT has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.28, BWXT is doing worse than 80.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 5.91 |
ROIC/WACC0.81
WACC10.07%
2.3 Liquidity
A Current Ratio of 1.69 indicates that BWXT should not have too much problems paying its short term obligations.
BWXT has a worse Current ratio (1.69) than 62.69% of its industry peers.
BWXT has a Quick Ratio of 1.60. 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 (1.60) is better than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.88% over the past year.
The Earnings Per Share has been growing slightly by 4.83% on average over the past years.
BWXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.13%.
The Revenue has been growing slightly by 7.37% on average over the past years.
EPS 1Y (TTM)12.88%
EPS 3Y2.86%
EPS 5Y4.83%
EPS Q2Q%24.39%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y8.37%
Revenue growth 5Y7.37%
Sales Q2Q%12.11%
3.2 Future
The Earnings Per Share is expected to grow by 10.79% on average over the next years. This is quite good.
BWXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.10% yearly.
EPS Next Y8.11%
EPS Next 2Y9.35%
EPS Next 3Y10.14%
EPS Next 5Y10.79%
Revenue Next Year14.15%
Revenue Next 2Y11.63%
Revenue Next 3Y10.49%
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
The Price/Earnings ratio is 47.15, which means the current valuation is very expensive for BWXT.
BWXT's Price/Earnings is on the same level as the industry average.
BWXT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.87.
The Price/Forward Earnings ratio is 43.57, which means the current valuation is very expensive for BWXT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BWXT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, BWXT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.15 | ||
| Fwd PE | 43.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BWXT.
Based on the Price/Free Cash Flow ratio, BWXT is valued a bit cheaper than the industry average as 74.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44 | ||
| EV/EBITDA | 41.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BWXT may justify a higher PE ratio.
PEG (NY)5.82
PEG (5Y)9.76
EPS Next 2Y9.35%
EPS Next 3Y10.14%
5. Dividend
5.1 Amount
BWXT has a yearly dividend return of 0.57%, which is pretty low.
BWXT's Dividend Yield is a higher than the industry average which is at 1.19.
Compared to an average S&P500 Dividend Yield of 2.39, BWXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of BWXT is nicely growing with an annual growth rate of 7.06%!
BWXT has been paying a dividend for at least 10 years, so it has 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 30.84% 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.
DP30.84%
EPS Next 2Y9.35%
EPS Next 3Y10.14%
173.5
-1.2 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.65%
Inst Owner Change-0.13%
Ins Owners0.39%
Ins Owner Change-1%
Market Cap15.85B
Analysts83.33
Price Target159.64 (-7.99%)
Short Float %3.12%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.97
Dividend Growth(5Y)7.06%
DP30.84%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.82%
Min EPS beat(2)19.54%
Max EPS beat(2)26.1%
EPS beat(4)4
Avg EPS beat(4)15.35%
Min EPS beat(4)4.98%
Max EPS beat(4)26.1%
EPS beat(8)8
Avg EPS beat(8)11%
EPS beat(12)10
Avg EPS beat(12)8.29%
EPS beat(16)12
Avg EPS beat(16)6.38%
Revenue beat(2)2
Avg Revenue beat(2)4.59%
Min Revenue beat(2)3.79%
Max Revenue beat(2)5.38%
Revenue beat(4)4
Avg Revenue beat(4)2.71%
Min Revenue beat(4)0.04%
Max Revenue beat(4)5.38%
Revenue beat(8)7
Avg Revenue beat(8)2.78%
Revenue beat(12)8
Avg Revenue beat(12)1.73%
Revenue beat(16)10
Avg Revenue beat(16)0.6%
PT rev (1m)13.14%
PT rev (3m)16.17%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)0%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.15 | ||
| Fwd PE | 43.57 | ||
| P/S | 5.53 | ||
| P/FCF | 44 | ||
| P/OCF | 30.53 | ||
| P/B | 13.39 | ||
| P/tB | 45.68 | ||
| EV/EBITDA | 41.91 |
EPS(TTM)3.68
EY2.12%
EPS(NY)3.98
Fwd EY2.29%
FCF(TTM)3.94
FCFY2.27%
OCF(TTM)5.68
OCFY3.28%
SpS31.35
BVpS12.96
TBVpS3.8
PEG (NY)5.82
PEG (5Y)9.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.96% | ||
| ROE | 24.86% | ||
| ROCE | 10.34% | ||
| ROIC | 8.15% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 11.34% | ||
| OM | 11.23% | ||
| PM (TTM) | 10.28% | ||
| GM | 24.26% | ||
| FCFM | 12.58% |
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-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 3.65 | ||
| Cap/Depr | 167.51% | ||
| Cap/Sales | 5.55% | ||
| Interest Coverage | 4.58 | ||
| Cash Conversion | 124.67% | ||
| Profit Quality | 122.4% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 5.91 |
F-Score5
WACC10.07%
ROIC/WACC0.81
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)12.88%
EPS 3Y2.86%
EPS 5Y4.83%
EPS Q2Q%24.39%
EPS Next Y8.11%
EPS Next 2Y9.35%
EPS Next 3Y10.14%
EPS Next 5Y10.79%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y8.37%
Revenue growth 5Y7.37%
Sales Q2Q%12.11%
Revenue Next Year14.15%
Revenue Next 2Y11.63%
Revenue Next 3Y10.49%
Revenue Next 5Y8.1%
EBIT growth 1Y-8.66%
EBIT growth 3Y2.74%
EBIT growth 5Y1.98%
EBIT Next Year38.69%
EBIT Next 3Y19.52%
EBIT Next 5Y13.45%
FCF growth 1Y435.34%
FCF growth 3Y50.39%
FCF growth 5Y21.23%
OCF growth 1Y116.06%
OCF growth 3Y1.9%
OCF growth 5Y7.89%