BWX Technologies (BWXT) AI Stock Analysis

• Market Cap: $8.86B
• Dividend Yield: 0.99%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.81
• Revenue Growth: 8.31%
• EPS Growth: 14.74%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 3.07
• Shares Outstanding: 91,483,710
• 10 Day Avg. Volume: 1,033,184
• 30 Day Avg. Volume: 1,008,435
• PEG Ratio: 2.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.27
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $125.40
• Price Target Upside: 29.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

BWX Technologies' strong financial performance and positive earnings call guidance contribute significantly to its overall stock score. Despite technical indicators pointing to short-term bearish momentum and a high P/E ratio suggesting overvaluation, the company's robust revenue growth, strategic investments, and stable cash flows position it well for long-term growth in the Aerospace & Defense sector.

Positive Factors

Financial Performance

BWXT's 4Q24 revenue increased year-over-year due to growth in the Commercial Operations segment, driven by more work on commercial nuclear reactor components and radioisotopes.

Strategic Acquisitions

BWXT's acquisition of Kinectrics aligns with its M&A strategy, complements core competencies, and is expected to be accretive to EPS in the first year.

Negative Factors

Dividend and Share Repurchase

Due to BWXT's recent acquisition activity, the 2025 dividend increase forecast has been removed and share repurchase estimates decreased.

BWX Technologies Business Overview & Revenue Model

Company Description

BWX Technologies, Inc. engages in the supply and provision of nuclear components and products. It operates through the following business segments: Nuclear Operations Group, Nuclear Services Group and Nuclear Power Group. The Nuclear Operations Group segment focuses on the design and manufacture of equipment for nuclear applications. The Nuclear Services Group segment includes nuclear materials processing, environmental site restoration services and management, operating services for various government-owned facilities, and inspection and maintenance services for the commercial nuclear industry. The Nuclear Power Group segment involves in the design and manufacture of commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and other auxiliary equipment such as containers for the storage of spent nuclear fuel and other high-level nuclear waste. The company was founded by Stephen Wilcox and George Babcock in 1867 and is headquartered in Lynchburg, VA.

How the Company Makes Money

BWXT generates revenue through multiple streams. A significant portion of its income comes from government contracts, particularly with the U.S. Department of Defense and the Department of Energy. These contracts involve the supply of nuclear components and services, including the production of naval nuclear reactors and nuclear fuel. BWXT also earns revenue from its commercial nuclear services, which include the design and supply of nuclear power generation systems and components to various clients. Additionally, the company engages in nuclear materials management and environmental site restoration, further diversifying its income sources. Strategic partnerships and long-term contracts with government entities are critical factors contributing to BWXT's financial performance.

BWX Technologies Financial Statement Overview

Summary

BWX Technologies presents a solid financial outlook with strong revenue growth and stable profitability margins. The company's balance sheet is healthy, marked by consistent equity growth and manageable debt levels. Cash flow from operations is robust, supporting capital investments and enhancing financial flexibility. Overall, BWXT is well-positioned within the Aerospace & Defense sector, though attention should be paid to debt trends and capital expenditures.

Income Statement

BWX Technologies shows a strong revenue growth trend from 2019 to 2024, with a significant boost in gross profit margin from 2019 to 2024. Key profitability margins, such as EBIT and EBITDA, remain robust, indicating efficient operations. However, a slight dip in net profit margin from 2021 is noted.

Balance Sheet

The company's balance sheet reflects a solid equity position with consistent growth in stockholders' equity. The debt-to-equity ratio shows moderate leverage, which is typical for the industry, but the increasing trend in total debt warrants monitoring. The equity ratio indicates a stable asset base supported by equity.

Cash Flow

BWX Technologies demonstrates strong operating cash flows with substantial growth in free cash flow over recent years. The free cash flow to net income ratio indicates efficient conversion of income into cash, although capital expenditures remain high, impacting net cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.70B	2.50B	2.23B	2.12B	2.12B
	Gross Profit
655.21M	620.59M	551.93M	550.28M	575.40M
	EBIT
380.61M	383.06M	348.57M	345.85M	358.55M
	EBITDA
474.06M	447.00M	386.01M	470.85M	422.34M
	Net Income Common Stockholders
281.94M	245.85M	238.19M	305.87M	278.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.11M	78.62M	39.05M	37.70M	46.32M
	Total Assets
2.87B	2.75B	2.62B	2.50B	2.29B
	Total Debt
1.06B	1.23B	1.29B	1.19B	951.42M
	Net Debt
981.36M	1.15B	1.25B	1.16B	908.82M
	Total Liabilities
1.79B	1.81B	1.87B	1.86B	1.68B
	Stockholders Equity
1.08B	933.35M	748.31M	637.17M	617.77M
Cash Flow		Free Cash Flow
254.78M	212.41M	46.39M	74.97M	-58.59M
	Operating Cash Flow
408.43M	363.70M	244.70M	386.03M	196.44M
	Investing Cash Flow
-154.56M	-155.64M	-256.24M	-304.65M	-265.32M
	Financing Cash Flow
-252.78M	-169.37M	13.95M	-90.14M	25.05M

BWX Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 96.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWXT, the sentiment is Negative. The current price of 96.9 is below the 20-day moving average (MA) of 103.47, below the 50-day MA of 110.81, and below the 200-day MA of 107.74, indicating a bearish trend. The MACD of -3.90 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BWXT.

BWX Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	78 Outperform	$71.53B	17.48	27.75%	1.62%	4.44%	110.33%
GD	75 Outperform	$73.52B	19.92	17.44%	2.09%	12.88%	13.78%
LMT	74 Outperform	$110.37B	21.48	81.04%	2.69%	5.14%	-19.14%
BWXT	73 Outperform	$8.86B	31.47	28.00%	0.99%	8.31%	14.74%
HII	73 Outperform	$7.65B	14.11	12.56%	2.69%	0.71%	-18.39%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
BA	37 Underperform	$111.12B	―	-162.23%	―	-14.49%	-399.90%

BWX Technologies Corporate Events

BWX Technologies Grants PSUs to Executive Vice President

BWX Technologies has granted 10,000 performance restricted stock units (PSUs) to Robb A. LeMasters, Executive Vice President and CFO, valued at $1.15 million. The PSUs aim to incentivize long-term shareholder value and will vest based on achieving financial metrics and acquisition targets by the end of 2027.