BWX Technologies (BWXT) AI Stock Analysis

• Market Cap: $9.35B
• Dividend Yield: 0.96%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 33.3
• Beta (1Y): 1.01
• Revenue Growth: 8.31%
• EPS Growth: 14.74%
• Country: US
• Employees: 8,700
• Sector: Industrials
• Sector Strength: 65
• Industry: Aerospace & Defense
• EPS (TTM): 3.07
• Shares Outstanding: 91,394,710
• 10 Day Avg. Volume: 1,139,390
• 30 Day Avg. Volume: 1,101,491
• PEG Ratio: 2.26
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.36
• Price to Cash Flow (P/CF): 8.20
• P/FCF Ratio: 9.80
• 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: $128.60
• Price Target Upside: 25.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

BWX Technologies demonstrates a strong financial performance with robust revenue growth and strategic investments driving future potential. While technical indicators suggest a cautious short-term outlook, the positive earnings call underscores a promising long-term trajectory. The valuation appears high, which might limit upside potential, but the company's strategic positioning and growth prospects in the Aerospace & Defense sector remain compelling.

Positive Factors

Acquisition Impact

The acquisitions of A.O.T and Kinetrics aim to unlock further growth opportunities and enhance BWXT's special materials and nuclear medicine portfolios.

Growth Opportunities

Growth potential in its commercial division--in both power applications and medical radioisotopes--shows it is not a one-trick pony.

Strategic Positioning

BWXT's government division has a monopoly on U.S. Navy nuclear reactors and the fuel that drives them.

Negative Factors

Dividend Forecast

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

Financial Adjustments

BWXT's quantified 2025 EPS guidance to a range of $3.40–$3.55, up 1.8%-6.3% year-over-year, bracketing consensus but above prior 2025 EPS forecast.

Market Competition

BWXT ended 4Q24 with a backlog of $4,842.5M, up 21.1% year-over-year and 43.2% quarter-over-quarter, above forecast.

BWX Technologies Business Overview & Revenue Model

Company Description

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

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: Neutral
• Last Price: 102.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BWXT, the sentiment is Neutral. The current price of 102.31 is above the 20-day moving average (MA) of 100.16, above the 50-day MA of 101.70, and below the 200-day MA of 109.13, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BWXT.

BWX Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWXT	78 Outperform	$9.35B	33.33	28.00%	0.96%	8.31%	14.74%
HII	77 Outperform	$8.55B	15.61	12.56%	2.43%	0.71%	-18.39%
DRS	76 Outperform	$9.21B	43.50	8.73%	0.25%	14.44%	26.36%
SARO	63 Neutral	$8.32B	779.62		―	14.77%	―
Sector *	62 Neutral	$4.16B	11.31	5.46%	215.65%	4.12%	-8.47%
AIR	61 Neutral	$1.84B	246.75	-1.08%	―	21.07%	-120.95%
KTOS	59 Neutral	$4.89B	299.44	1.40%	―	9.57%	―

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.