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BW

Babcock & Wilcox EnterprisesNYSE:BW Stock Report

Market Cap

US$785.0m

7D

-12.6%

1Y

106.1%

Updated

02 Dec, 2021

Data

Company Financials +
BW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance2/6
Financial Health1/6
Dividends0/6

BW Stock Overview

Babcock & Wilcox Enterprises, Inc., together with its subsidiaries, provides energy and environmental technologies and services for the power and industrial markets worldwide.

Babcock & Wilcox Enterprises Competitors

General Electric

NYSE:GE

US$104.3b

West Pharmaceutical Services

NYSE:WST

US$32.8b

Keppel

SGX:BN4

S$9.3b

Valmet Oyj

HLSE:VALMT

€5.5b

Price History & Performance

Summary of all time highs, changes and price drops for Babcock & Wilcox Enterprises
Historical stock prices
Current Share PriceUS$8.51
52 Week HighUS$10.37
52 Week LowUS$3.17
Beta2.71
1 Month Change19.36%
3 Month Change16.74%
1 Year Change106.05%
3 Year Change-5.26%
5 Year Change-95.06%
Change since IPO-95.59%

Recent News & Updates

Nov 12
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Shares Could Be 48% Below Their Intrinsic Value Estimate

Babcock & Wilcox Enterprises, Inc. (NYSE:BW) Shares Could Be 48% Below Their Intrinsic Value Estimate

Does the November share price for Babcock & Wilcox Enterprises, Inc. ( NYSE:BW ) reflect what it's really worth? Today...

Sep 22

Babcock & Wilcox Enterprises: Change To Takeover Candidate From Bankruptcy Candidate

Babcock & Wilcox Enterprises effectively issued 809.6 million new pre reverse stock split shares to avoid Ch.11 bankruptcy. Management recently announced a deal to purchase a solar construction company, Fosler Construction. The brokerage firm B. Riley Financial currently controls 33.2% of outstanding shares. Management's targeted EBITDA in 2022 is $95-$105 million. For a number of reasons, I think the company is a potential buyout target.

Shareholder Returns

BWUS ElectricalUS Market
7D-12.6%-7.5%-4.9%
1Y106.1%24.7%17.8%

Return vs Industry: BW exceeded the US Electrical industry which returned 26.1% over the past year.

Return vs Market: BW exceeded the US Market which returned 20% over the past year.

Price Volatility

Is BW's price volatile compared to industry and market?
BW volatility
BW Average Weekly Movement9.7%
Electrical Industry Average Movement8.4%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: BW is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: BW's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
18672,075Kenny Younghttps://www.babcock.com

Babcock & Wilcox Enterprises, Inc., together with its subsidiaries, provides energy and environmental technologies and services for the power and industrial markets worldwide. The company operates through three segments: Babcock & Wilcox Renewable; Babcock & Wilcox Environmental; and Babcock & Wilcox Thermal. The Babcock & Wilcox Renewable segment offers technologies for waste-to-energy and biomass energy systems, as well as black liquor systems for the pulp and paper industry.

Babcock & Wilcox Enterprises Fundamentals Summary

How do Babcock & Wilcox Enterprises's earnings and revenue compare to its market cap?
BW fundamental statistics
Market CapUS$784.97m
Earnings (TTM)US$481.00k
Revenue (TTM)US$680.92m

1,528x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BW income statement (TTM)
RevenueUS$680.92m
Cost of RevenueUS$486.60m
Gross ProfitUS$194.32m
ExpensesUS$193.84m
EarningsUS$481.00k

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0056
Gross Margin28.54%
Net Profit Margin0.07%
Debt/Equity Ratio946.4%

How did BW perform over the long term?

See historical performance and comparison

Valuation

Is Babcock & Wilcox Enterprises undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BW ($8.51) is trading below our estimate of fair value ($20.41)

Significantly Below Fair Value: BW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BW is poor value based on its PE Ratio (1527.8x) compared to the US Electrical industry average (23.2x).

PE vs Market: BW is poor value based on its PE Ratio (1527.8x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: BW is poor value based on its PEG Ratio (30.7x)


Price to Book Ratio

PB vs Industry: BW has negative assets, so we can't compare its PB Ratio to the US Electrical industry average.


Future Growth

How is Babcock & Wilcox Enterprises forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BW's forecast earnings growth (49.8% per year) is above the savings rate (2%).

Earnings vs Market: BW's earnings (49.8% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BW's revenue (10.7% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: BW's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BW's Return on Equity is forecast to be very high in 3 years time (826%).


Past Performance

How has Babcock & Wilcox Enterprises performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BW has a large one-off loss of $20.7M impacting its September 30 2021 financial results.

Growing Profit Margin: BW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BW has become profitable over the past 5 years, growing earnings by 23.5% per year.

Accelerating Growth: BW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (56.7%).


Return on Equity

High ROE: Whilst BW's Return on Equity (31.19%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Babcock & Wilcox Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: BW's short term assets ($446.8M) exceed its short term liabilities ($230.3M).

Long Term Liabilities: BW's short term assets ($446.8M) do not cover its long term liabilities ($478.6M).


Debt to Equity History and Analysis

Debt Level: BW's net debt to equity ratio (379.1%) is considered high.

Reducing Debt: BW's debt to equity ratio has increased from 6.9% to 946.5% over the past 5 years.

Debt Coverage: BW's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BW's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

What is Babcock & Wilcox Enterprises's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Kenny Young (57 yo)

3yrs

Tenure

US$1,977,204

Compensation

Mr. Kenneth M. Young, also known as Kenny, serves as Chief Executive Officer of Babcock & Wilcox Enterprises, Inc. since November 19, 2018 and serves as its Chairman of the board and Director since Septemb...


CEO Compensation Analysis

Compensation vs Market: Kenny's total compensation ($USD1.98M) is about average for companies of similar size in the US market ($USD2.29M).

Compensation vs Earnings: Kenny's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BW's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: BW's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 65.9%.


Top Shareholders

Company Information

Babcock & Wilcox Enterprises, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Babcock & Wilcox Enterprises, Inc.
  • Ticker: BW
  • Exchange: NYSE
  • Founded: 1867
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: US$784.972m
  • Shares outstanding: 86.26m
  • Website: https://www.babcock.com

Number of Employees


Location

  • Babcock & Wilcox Enterprises, Inc.
  • 1200 East Market Street
  • Suite 650
  • Akron
  • Ohio
  • 44305
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:11
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.