BWX Technologies, Inc. (BWXT) stock analysis

P/E below its 5-year median

BWX Technologies's P/E of 30.8 is below its own 5-year median of 33.4.

P/E above the industry

BWX Technologies's P/E of 30.8 is above the Industrial and Commercial Machinery and Computer Equipment median of 27.5.

EV/EBITDA above its 5-year median

BWX Technologies's EV/EBITDA of 22.8 is above its 5-year median of 21.1.

P/B above the industry

BWX Technologies's price-to-book of 8.12 is above the Industrial and Commercial Machinery and Computer Equipment median of 2.71.

Trading above fair value

The share price of $125.68 is above our fair value estimate of $100.57.

Margin of safety under 20%

The price is 25.0% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 12.7% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 11.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 22.1% over the last twelve months, against a 5-year average of 3.4% a year.

Growing faster than the industry

Revenue grew 17.7% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 10.1%.

Guidance raised

BWX Technologies raised its Year Ending December 31, 2026 Revenue outlook on Aug 3, 2026.

Gross margin slipping

Gross margin was 22.6% over the last twelve months, against 23.5% a year earlier.

Return on equity over 15%

Return on equity was 28.2% over the last twelve months and averaged 33.8% over five years.

Return on capital over 10%

Return on invested capital was 13.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

BWX Technologies's return on equity of 28.2% is above the Industrial and Commercial Machinery and Computer Equipment median of 7.0%.

Earnings grew over 5 years

Net income grew 3.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 10.4% over the last twelve months, against a 5-year average of 11.1%.

Net margin above the industry

BWX Technologies's net margin of 10.4% is above the Industrial and Commercial Machinery and Computer Equipment median of 4.8%.

High debt

Debt is 143% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 140% five years ago to 143%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.6% of total debt.

Interest well covered

Operating income covers interest expense 17.4 times.

Short-term assets cover short-term debts

Current assets are 1.88 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.15; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

BWX Technologies paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; BWX Technologies yields 0.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 26.1% of net income.

Covered by free cash flow

Dividends take 26.3% of free cash flow.