BWX Technologies (BWXT): Assessing Valuation After Major $1.5 Billion NNSA Uranium Enrichment Contract

Thinking about buying or holding BWX Technologies (BWXT) after the company landed a $1.5 billion contract from the National Nuclear Security Administration? This move has the attention of the market, with BWXT now set to build a pilot uranium enrichment plant in Tennessee, a pivotal project for America’s national defense and domestic nuclear capabilities. The company’s early start on construction for a new centrifuge manufacturing facility signals not just government support but also tangible momentum behind its nuclear ambitions.

If you check the stock’s recent performance, BWX Technologies has seen steady gains, with share prices up 26% over the past 3 months and a run of nearly 68% higher over the last year. The company’s profile has benefited from a series of developments, such as recent state grants and new contracts in both the U.S. and Europe, all while investor interest in nuclear technology grows globally. There is little sign of lost momentum as new deals stack up in support of BWXT’s long-term positioning.

After this strong run, are investors looking at a genuine opportunity with room for more upside, or is the market already factoring in every bit of BWXT’s growth story ahead?

Most Popular Narrative: 4.9% Undervalued

The prevailing narrative suggests that BWX Technologies is trading below its perceived fair value, supported by strong defense and nuclear energy tailwinds. However, there is debate over whether current business momentum justifies the stock’s elevated price.

Record $6 billion backlog, up 70% year over year and 23% quarter-over-quarter growth, driven by multi-year defense contracts, a rapidly expanding opportunity pipeline, and accelerating nuclear energy and medical demand, signals strong visibility into future revenue growth and earnings stability.

Curious how these bold assumptions power the latest analyst target? Unpack the data behind BWXT’s premium valuation. There is a high-stakes mix of future profit forecasts, margin expansion, and backlog growth fueling this story. Want to see which numbers set this price? Dive into the full narrative and discover what is driving this undervalued call.

Result: Fair Value of $190 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifts in government defense budgets or commercial project delays could quickly challenge today's assumptions and dampen BWXT's growth story.

Find out about the key risks to this BWX Technologies narrative.

Another View: The Multiples-Based Challenge

While the headline valuation points to an undervalued story, looking at how shares trade versus the wider industry gives a different impression. BWX Technologies is more expensive than its sector average on this measure. Which perspective holds more weight in the long run?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding BWX Technologies to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own BWX Technologies Narrative

Not convinced by the consensus view, or want to dig into the numbers your own way? You can shape your own story in minutes: Do it your way.

A great starting point for your BWX Technologies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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