NYSE:BWXT

Stock Analysis Report

Executive Summary

BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally.


Snowflake Analysis

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has BWX Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BWXT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-21.8%

BWXT

-13.6%

US Aerospace & Defense

-11.2%

US Market


1 Year Return

6.0%

BWXT

7.6%

US Aerospace & Defense

4.1%

US Market

Return vs Industry: BWXT underperformed the US Aerospace & Defense industry which returned 7.6% over the past year.

Return vs Market: BWXT exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

BWXTIndustryMarket
7 Day-21.8%-13.6%-11.2%
30 Day-16.1%-13.8%-9.5%
90 Day-8.8%-8.8%-5.4%
1 Year7.3%6.0%9.5%7.6%6.2%4.1%
3 Year18.5%14.8%31.2%24.2%30.3%21.9%
5 Year164.9%80.5%69.7%53.6%55.0%38.0%

Price Volatility Vs. Market

How volatile is BWX Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BWX Technologies undervalued compared to its fair value and its price relative to the market?

18.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWXT ($54.84) is trading below our estimate of fair value ($67.63)

Significantly Below Fair Value: BWXT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BWXT is poor value based on its PE Ratio (21.4x) compared to the Aerospace & Defense industry average (17.6x).

PE vs Market: BWXT is poor value based on its PE Ratio (21.4x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: BWXT is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: BWXT is overvalued based on its PB Ratio (12.9x) compared to the US Aerospace & Defense industry average (2.5x).


Next Steps

Future Growth

How is BWX Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWXT's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).

Earnings vs Market: BWXT's earnings (8.7% per year) are forecast to grow slower than the US market (12.9% per year).

High Growth Earnings: BWXT's earnings are forecast to grow, but not significantly.

Revenue vs Market: BWXT's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BWXT's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWXT's Return on Equity is forecast to be high in 3 years time (38.3%)


Next Steps

Past Performance

How has BWX Technologies performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWXT has high quality earnings.

Growing Profit Margin: BWXT's current net profit margins (12.9%) are higher than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: BWXT's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: BWXT's earnings growth over the past year (7.6%) is below its 5-year average (21.4% per year).

Earnings vs Industry: BWXT earnings growth over the past year (7.6%) underperformed the Aerospace & Defense industry 9.2%.


Return on Equity

High ROE: Whilst BWXT's Return on Equity (60.55%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is BWX Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: BWXT's short term assets ($629.8M) exceed its short term liabilities ($404.7M).

Long Term Liabilities: BWXT's short term assets ($629.8M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: BWXT's debt to equity ratio (203.9%) is considered high.

Reducing Debt: BWXT's debt to equity ratio has increased from 29.6% to 203.9% over the past 5 years.

Debt Coverage: BWXT's debt is well covered by operating cash flow (33.9%).

Interest Coverage: BWXT's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

Inventory Level: BWXT has a high level of physical assets or inventory.

Debt Coverage by Assets: BWXT's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is BWX Technologies's current dividend yield, its reliability and sustainability?

1.39%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 29 2020Ex Dividend DateMar 06 2020Dividend Pay DateMar 26 202020 days from Ex DividendBuy in the next 5 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: BWXT's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: BWXT's dividend (1.39%) is low compared to the top 25% of dividend payers in the US market (4.13%).


Stability and Growth of Payments

Stable Dividend: BWXT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWXT's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.6%), BWXT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWXT's dividends in 3 years are forecast to be well covered by earnings (26.2% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Rex Geveden (57yo)

3.1yrs

Tenure

US$4,723,426

Compensation

Mr. Rex D. Geveden has been the Chief Executive Officer and President at BWX Technologies, Inc. since January 1, 2017 and served as its Chief Operating Officer from October 26, 2015 to December 2016. Mr. G ...


CEO Compensation Analysis

Compensation vs Market: Rex's total compensation ($USD4.72M) is about average for companies of similar size in the US market ($USD6.67M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rex Geveden
President3.1yrsUS$4.72m0.071% $3.7m
David Black
Senior VP4.7yrsUS$1.58m0.078% $4.1m
Richard Loving
Senior VP of Human Resources & Chief Administration Officer0yrsUS$1.11m0.013% $684.1k
Thomas McCabe
Senior VP1.6yrsUS$1.02m0.00051% $26.6k
Joel Duling
President of Nuclear Operations Group1.7yrsUS$1.31m0.018% $944.3k
Jason Kerr
VP & Chief Accounting Officer4.7yrsno data0.0089% $466.7k
William Russell
Senior VP & CTO3.1yrsno datano data
Mark Kratz
Director of Investor Relations1.1yrsno datano data
Kenneth Camplin
President of Nuclear Services Group2.3yrsno datano data
John MacQuarrie
President of Nuclear Power Group2.9yrsno datano data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: BWXT's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rex Geveden
President3.1yrsUS$4.72m0.071% $3.7m
Gerhard Burbach
Independent Director1.5yrsUS$134.97kno data
Charles Pryor
Lead Independent Director0yrsUS$243.33k0.0052% $269.1k
Robert Nardelli
Independent Director5.9yrsUS$213.59kno data
John Fees
Non- Executive Chairman9.6yrsUS$272.61k0.083% $4.3m
Barbara Niland
Independent Director3.4yrsUS$231.46k0.0095% $494.3k
Jan Bertsch
Independent Director6.7yrsUS$241.65k0.012% $643.5k
James Jaska
Independent Director3.4yrsUS$234.54kno data
Kenneth Krieg
Independent Director3.4yrsUS$218.10kno data
Robb LeMasters
Independent Director4.6yrsUS$219.01kno data

3.4yrs

Average Tenure

61yo

Average Age

Experienced Board: BWXT's board of directors are considered experienced (3.4 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BWX Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BWX Technologies, Inc.
  • Ticker: BWXT
  • Exchange: NYSE
  • Founded: 1867
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$5.214b
  • Shares outstanding: 95.08m
  • Website: https://www.bwxt.com

Number of Employees


Location

  • BWX Technologies, Inc.
  • 800 Main Street
  • 4th Floor
  • Lynchburg
  • Virginia
  • 24504
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWXTNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2010
4BWDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2010

Biography

BWX Technologies, Inc. manufactures and sells nuclear components in the United States, Canada, and internationally. Its Nuclear Operations Group segment offers nuclear components, reactors, assemblies, and fuel for the United States Department of Energy/National Nuclear Security Administration's Naval Nuclear Propulsion Program and other uses; close-tolerance equipment for nuclear applications; research reactor fuel elements for colleges, universities, and national laboratories; and components for defense applications. It also provides missile launch tubes for the United States Navy submarines; converts high-enriched uranium into low-enriched fuel for use in commercial reactors to generate electricity; and receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials. Its Nuclear Services Group segment provides nuclear materials processing, environmental site restoration, and management and operating services for the United States government-owned facilities; develops technology for advanced nuclear power sources application and customized tooling solutions; designs, engineers, licenses, and manufactures reactors; and inspects and services steam generators, heat exchangers, and balance of plants; and provides high pressure water lancing and non-destructive examination services, and nuclear fuel. Its Nuclear Power Group segment offers commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and containers; nuclear fuel, fuel handling systems, tooling delivery systems, and related services, as well as engineering and in-plant services for nuclear power plants; and medical radioisotopes and radiopharmaceuticals. It also designs, manufactures, commissions, and services nuclear power generation equipment. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. The company was founded in 1867 and is headquartered in Lynchburg, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 01:41
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.