NYSE:BWXT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

BWXT

1.7%

US Aerospace & Defense

0.8%

US Market


1 Year Return

51.1%

BWXT

38.8%

US Aerospace & Defense

25.1%

US Market

Return vs Industry: BWXT exceeded the US Aerospace & Defense industry which returned 37.9% over the past year.

Return vs Market: BWXT exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

BWXTIndustryMarket
7 Day0.2%1.7%0.8%
30 Day2.9%6.1%3.1%
90 Day13.7%10.2%10.9%
1 Year53.1%51.1%41.4%38.8%27.7%25.1%
3 Year60.7%55.7%59.6%51.1%51.3%41.6%
5 Year255.8%141.6%101.8%82.6%77.2%57.6%

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?

30.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BWXT ($64.99) is trading above our estimate of fair value ($58.31)

Significantly Below Fair Value: BWXT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BWXT is poor value based on its PE Ratio (30.5x) compared to the Aerospace & Defense industry average (20.7x).

PE vs Market: BWXT is poor value based on its PE Ratio (30.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BWXT is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: BWXT is overvalued based on its PB Ratio (17.5x) compared to the US Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is BWX Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWXT's forecast earnings growth (10.3% per year) is above the savings rate (1.7%).

Earnings vs Market: BWXT's earnings (10.3% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: BWXT's revenue (5.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BWXT's revenue (5.9% 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 (37.5%)


Next Steps

Past Performance

How has BWX Technologies performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWXT has high quality earnings.

Growing Profit Margin: BWXT's current net profit margins (10.9%) are higher than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: BWXT's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: BWXT's earnings growth over the past year (8.1%) is below its 5-year average (14.6% per year).

Earnings vs Industry: BWXT earnings growth over the past year (8.1%) underperformed the Aerospace & Defense industry 13.9%.


Return on Equity

High ROE: Whilst BWXT's Return on Equity (57.88%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BWX Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: BWXT's short term assets ($621.5M) exceed its short term liabilities ($333.7M).

Long Term Liabilities: BWXT's short term assets ($621.5M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: BWXT's debt to equity ratio (243.7%) is considered high.

Reducing Debt: BWXT's debt to equity ratio has increased from 27% to 243.7% over the past 5 years.

Debt Coverage: BWXT's debt is well covered by operating cash flow (31.1%).

Interest Coverage: BWXT's interest payments on its debt are well covered by EBIT (7.8x 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 0.7x debt).


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: BWXT's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BWXT's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (31.4%), 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% payout ratio).


Next Steps

Management

What is the CEO of BWX Technologies's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Rex Geveden (57yo)

3yrs

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 ($USD4.72M) is about average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: BWXT's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

61yo

Average Age

Experienced Board: BWXT's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: BWXT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$97,39220 Nov 19
Joel Duling
EntityIndividual
Role
Senior Key Executive
President of Nuclear Operations Group
Shares1,600
Max PriceUS$60.87
SellUS$3,429,00012 Aug 19
John Fees
EntityIndividual
Role
Chairman of the Board
Non- Executive Chairman
Shares60,000
Max PriceUS$57.15
SellUS$95,93322 May 19
David Black
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares2,000
Max PriceUS$47.97
SellUS$293,76011 Mar 19
Jason Kerr
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares6,000
Max PriceUS$48.96

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Tom McCabe (64yo)

    Senior VP

    • Tenure: 1.5yrs
    • Compensation: US$1.02m
  • Rex Geveden (57yo)

    President

    • Tenure: 3yrs
    • Compensation: US$4.72m
  • Rick Loving (62yo)

    Senior VP of Human Resources & Chief Administration Officer

    • Compensation: US$1.11m
  • David Black (57yo)

    Senior VP

    • Tenure: 4.6yrs
    • Compensation: US$1.58m
  • John MacQuarrie

    President of Nuclear Power Group

    • Tenure: 2.9yrs
  • Ken Camplin

    President of Nuclear Services Group

    • Tenure: 2.2yrs
  • Jason Kerr (42yo)

    VP & Chief Accounting Officer

    • Tenure: 4.6yrs
  • Joel Duling (56yo)

    President of Nuclear Operations Group

    • Tenure: 1.6yrs
    • Compensation: US$1.31m
  • William Russell

    Senior VP & CTO

    • Tenure: 3yrs
  • Mark Kratz

    Director of Investor Relations

    • Tenure: 1yrs

Board Members

  • Gary Burbach (57yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$134.97k
  • Charlie Pryor (74yo)

    Lead Independent Director

    • Compensation: US$243.33k
  • Bob Nardelli (71yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$213.59k
  • John Fees (62yo)

    Non- Executive Chairman

    • Tenure: 9.5yrs
    • Compensation: US$272.61k
  • Barbara Niland (60yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$231.46k
  • Rex Geveden (57yo)

    President

    • Tenure: 3yrs
    • Compensation: US$4.72m
  • Jan Bertsch (62yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$241.65k
  • James Jaska (67yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$234.54k
  • ken Krieg (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$218.10k
  • Robb LeMasters (41yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$219.01k

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$6.219b
  • Shares outstanding: 95.25m
  • 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 Analysis2020/01/22 01:01
End of Day Share Price2020/01/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.