Babcock & Wilcox Company (BW) AI Stock Analysis

• Market Cap: $44.38M
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.43
• Revenue Growth: -30.29%
• EPS Growth: 40.03%
• Country: US
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): -1.43
• Shares Outstanding: 98,404,020
• 10 Day Avg. Volume: 1,855,326
• 30 Day Avg. Volume: 2,032,578
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 12.96
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.33
• Price Target Upside: 406.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Babcock & Wilcox faces substantial financial challenges, notably negative net income and high leverage. Despite improved revenue and operating metrics, the stock faces downward pressure from technical indicators and valuation concerns. The company's high debt levels remain a critical risk factor.

Babcock & Wilcox Company Business Overview & Revenue Model

Company Description

Babcock & Wilcox Enterprises, Inc., together with its subsidiaries, provides energy and emissions control solutions to a range of industrial, electrical utility, municipal, and other customers worldwide. It 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, solar construction and installation, and biomass energy systems, as well as black liquor systems for the pulp and paper industry. This segment provides technologies support solutions for diverting waste from landfills to use for power generation and replacing fossil fuels while recovering metals and reducing emissions. The Babcock & Wilcox Environmental segment offers a range of emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications. This segment provides systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control. The Babcock & Wilcox Thermal segment offers steam generation equipment; aftermarket parts; and construction, maintenance, and field services for plants in the power generation, oil and gas, and industrial sectors. This segment has an installed equipment for utilities and general industrial applications, including refining, petrochemical, food processing, metals, and others. The company was founded in 1867 and is headquartered in Akron, Ohio.

How the Company Makes Money

Babcock & Wilcox Company generates revenue through multiple streams, primarily from the sale of its technology, products, and services in the energy and environmental sectors. A significant portion of its income comes from contracts to supply clean energy systems, including waste-to-energy, biomass, and solar energy solutions. Additionally, the company provides comprehensive aftermarket services, such as maintenance, retrofitting, and parts supply, which create a steady revenue stream. BW also capitalizes on its expertise in emissions control technologies, offering solutions to reduce pollutants and enhance operational efficiency for industrial clients. Strategic partnerships and long-term contracts with utility companies and industrial firms further bolster its revenue base, ensuring consistent demand for its innovative and sustainable solutions.

Babcock & Wilcox Company Financial Statement Overview

Summary

Babcock & Wilcox Company faces significant financial difficulties, with negative revenue growth, high leverage, and negative cash flows. The company struggles with profitability, as evidenced by negative net income margins and operational challenges. The balance sheet shows financial instability with negative equity, posing risks to financial health. Cash flow issues further compound these challenges, requiring strategic improvements for sustainable growth.

Income Statement

The TTM data shows a decline in revenue from the previous year, indicating a negative growth trend. Gross profit margin is approximately 23.3%, which is relatively stable. However, the net profit margin is negative due to significant losses, with TTM showing a net income of -$59.65 million. EBIT margin is positive at around 5.4%, but EBITDA is negative, indicating operational challenges.

Balance Sheet

The company has very high leverage with a negative stockholders' equity of -$203.69 million and a debt-to-equity ratio that cannot be calculated due to negative equity. These factors pose significant financial risk. ROE is not applicable due to negative equity, and the equity ratio is also negative, indicating financial instability.

Cash Flow

Operating cash flow is negative at -$88.06 million TTM, showing a deteriorating trend. Free cash flow is also negative, reflecting cash management issues. The operating cash flow to net income ratio is unfavorable, and there is no growth in free cash flow. These factors highlight cash flow management challenges.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
999.35M	889.80M	723.40M	566.30M	859.10M
	Gross Profit
224.09M	185.60M	179.60M	165.80M	160.20M
	EBIT
19.90M	29.10M	57.50M	11.90M	2.50M
	EBITDA
-267.00K	57.56M	91.20M	77.45M	26.10M
	Net Income Common Stockholders
-197.21M	-26.60M	30.89M	-12.10M	-129.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
65.30M	76.70M	224.90M	57.30M	43.80M
	Total Assets
775.70M	942.70M	913.30M	591.80M	626.40M
	Total Debt
436.34M	411.90M	402.80M	388.30M	317.80M
	Net Debt
371.04M	335.20M	177.90M	331.00M	274.00M
	Total Liabilities
976.05M	944.80M	854.70M	930.10M	921.40M
	Stockholders Equity
-200.96M	-2.60M	33.10M	-339.40M	-296.40M
Cash Flow		Free Cash Flow
-52.07M	-43.80M	-117.90M	-49.00M	-180.10M
	Operating Cash Flow
-42.27M	-30.60M	-111.20M	-40.80M	-176.30M
	Investing Cash Flow
-7.94M	-68.70M	-33.50M	2.20M	8.80M
	Financing Cash Flow
8.56M	-11.16M	302.80M	44.10M	167.00M

Babcock & Wilcox Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BW, the sentiment is Negative. The current price of 0.46 is above the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.71, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 92.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BW.

Babcock & Wilcox Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWEN	64 Neutral	$34.15M	28.71	2.00%	―	-29.65%	-84.94%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
LASE	50 Neutral	$41.99M	―	-30.59%	―	-44.07%	-78.93%
CVV	45 Neutral	$20.44M	―	-7.36%	―	11.47%	54.59%
CETY	44 Neutral	$19.01M	―	-109.72%	―	-83.96%	29.71%
BW	43 Neutral	$44.38M	―	29.28%	―	-30.29%	40.03%
TPIC	40 Underperform	$43.53M	―	77.71%	―	-8.18%	-20.81%

Babcock & Wilcox Company Corporate Events

Babcock & Wilcox Faces NYSE Non-Compliance Notice

On April 4, 2025, Babcock & Wilcox Enterprises, Inc. received a notice from the New York Stock Exchange (NYSE) indicating non-compliance with the minimum average closing price requirement of $1.00 per share over a consecutive 30 trading-day period. The company has six months to regain compliance, during which its stock will continue to be traded on the NYSE with an added “.BC” designation. The notice does not impact the company’s business operations, reporting obligations, or debt obligations.

Spark’s Take on BW Stock

According to Spark, TipRanks’ AI Analyst, BW is a Underperform.

Babcock & Wilcox’s overall score reflects substantial financial challenges, notably negative net income and high leverage. Despite improved revenue and operating metrics, the stock faces downward pressure from technical indicators and valuation concerns. The company’s high debt levels remain a critical risk factor.

To see Spark’s full report on BW stock, click here.

Babcock & Wilcox Reports Strong 2024 Financial Performance

Babcock & Wilcox reported a strong financial performance for the fourth quarter and full year 2024, with significant increases in revenue, operating income, and bookings. The company has made substantial progress in its BrightLoop hydrogen and carbon capture projects, receiving $10 million in state support and targeting production by 2026. B&W is also focused on debt reduction and restructuring, with ongoing asset sales and negotiations with bondholders. The company anticipates positive cash flow in 2025 and expects continued growth driven by increased demand for its technologies, particularly in the power generation sector.