Breaking Down BWX Technologies, Inc. (BWXT) Financial Health: Key Insights for Investors

Breaking Down BWX Technologies, Inc. (BWXT) Financial Health: Key Insights for Investors

US | Industrials | Aerospace & Defense | NYSE

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Understanding BWX Technologies, Inc. (BWXT) Revenue Streams

Revenue Analysis

For the fiscal year 2023, the company reported total revenues of $2.44 billion, representing a 6.7% increase from the previous year.

Business Segment Revenue Contribution Percentage of Total Revenue
Nuclear Operations $1.56 billion 64%
Nuclear Services $620 million 25.4%
Government Services $264 million 10.6%

Revenue Streams Breakdown

  • Nuclear Reactors Segment: $1.2 billion
  • Nuclear Services Segment: $620 million
  • Government Contracts: $618 million

Year-over-Year Revenue Growth

Year Total Revenue Growth Rate
2021 $2.24 billion N/A
2022 $2.29 billion 2.2%
2023 $2.44 billion 6.7%

The company's primary revenue sources include nuclear technology services, government contracts, and specialized nuclear operations.




A Deep Dive into BWX Technologies, Inc. (BWXT) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's operational efficiency and earnings potential.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 27.3% 28.6%
Operating Profit Margin 14.2% 15.7%
Net Profit Margin 10.5% 11.8%

Key profitability indicators demonstrate consistent improvement across multiple financial dimensions.

  • Operating Income: $415.6 million in 2023
  • Net Income: $312.3 million in 2023
  • Return on Equity (ROE): 16.7%
  • Return on Assets (ROA): 9.4%
Efficiency Metric 2023 Performance
Asset Turnover Ratio 0.82
Operating Expense Ratio 13.1%

Comparative industry analysis indicates strong competitive positioning with above-average profitability metrics.




Debt vs. Equity: How BWX Technologies, Inc. (BWXT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.

Debt Metric Amount (USD)
Total Long-Term Debt $537.8 million
Short-Term Debt $82.5 million
Total Debt $620.3 million
Debt-to-Equity Ratio 0.73

Key debt financing characteristics include:

  • Credit Rating: BBB- from Standard & Poor's
  • Weighted Average Interest Rate: 4.25%
  • Debt Maturity Profile: Primarily long-term instruments

Equity financing components:

Equity Metric Amount (USD)
Total Shareholders' Equity $845.6 million
Common Stock Outstanding 54.3 million shares

Financing strategy highlights:

  • Maintained conservative debt leverage
  • Consistent access to capital markets
  • Strong interest coverage ratio of 8.2x



Assessing BWX Technologies, Inc. (BWXT) Liquidity

Liquidity and Solvency Analysis

The company's liquidity metrics reveal critical financial insights as of the most recent financial reporting period:

Liquidity Metric Value
Current Ratio 1.42
Quick Ratio 1.13
Working Capital $287.6 million

Cash flow statement highlights include:

  • Operating Cash Flow: $436.2 million
  • Investing Cash Flow: -$312.5 million
  • Financing Cash Flow: -$198.7 million

Key liquidity indicators demonstrate:

  • Cash and Cash Equivalents: $524.3 million
  • Short-Term Investments: $189.6 million
  • Total Liquid Assets: $713.9 million
Debt Metrics Amount
Total Debt $782.4 million
Debt-to-Equity Ratio 0.67
Interest Coverage Ratio 4.92



Is BWX Technologies, Inc. (BWXT) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investment potential.

Key Valuation Metrics

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 18.5x 19.2x
Price-to-Book (P/B) Ratio 3.7x 4.1x
Enterprise Value/EBITDA 12.3x 13.6x

Stock Price Performance

Time Period Price Movement
52-Week Low $55.42
52-Week High $82.67
Current Price $68.93

Dividend Analysis

  • Dividend Yield: 2.1%
  • Payout Ratio: 35.6%
  • Annual Dividend: $1.44 per share

Analyst Recommendations

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%

Comparative Valuation Indicators

  • Forward P/E Ratio: 16.8x
  • Price/Sales Ratio: 2.3x
  • Return on Equity: 14.2%



Key Risks Facing BWX Technologies, Inc. (BWXT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Key Operational Risks

  • Government Contract Dependency: 87% of revenue derived from U.S. government contracts
  • Potential contract cancellations or funding reductions
  • Complex regulatory compliance requirements

Financial Risk Assessment

Risk Category Potential Impact Probability
Market Volatility Revenue Fluctuation Medium
Geopolitical Tensions Defense Spending Changes High
Supply Chain Disruption Production Delays Low

Strategic Risks

  • Technology Obsolescence Risk: $42 million annual R&D investment
  • Competitive Landscape Pressure
  • Cybersecurity Vulnerability

Regulatory Risk Exposure

Nuclear industry regulatory compliance challenges, with potential penalties up to $5.3 million for non-compliance.

Financial Risk Metrics

Risk Indicator Current Value
Debt-to-Equity Ratio 0.67
Interest Coverage Ratio 4.2



Future Growth Prospects for BWX Technologies, Inc. (BWXT)

Growth Opportunities

BWX Technologies, Inc. demonstrates promising growth prospects across multiple strategic segments:

  • Nuclear Operations Division Revenue: $1.86 billion in 2023
  • Projected Nuclear Technology Market CAGR: 4.7% through 2028
  • Government Contract Backlog: $10.4 billion as of December 2023
Growth Segment 2023 Revenue Projected Growth
Nuclear Propulsion $1.2 billion 5.3% annually
Nuclear Services $640 million 4.9% annually
Government Contracts $2.1 billion 6.2% annually

Strategic growth initiatives include:

  • Advanced nuclear reactor technology development
  • Expanding defense and space propulsion capabilities
  • Investing in small modular reactor technologies

Key competitive advantages:

  • Exclusive U.S. Navy nuclear propulsion technology provider
  • Long-term government contract relationships
  • Advanced manufacturing capabilities
Investment Metrics 2023 Value
R&D Investment $187 million
Capital Expenditures $224 million

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