Babcock & Wilcox Enterprises, Inc. Fundamental Analysis
Babcock & Wilcox Enterprises, Inc. (BW-PA) shows moderate financial fundamentals with a PE ratio of -16.73, profit margin of -19.28%, and ROE of 61.01%. The company generates $0.6B in annual revenue with weak year-over-year growth of -18.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BW-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakBW-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBW-PA trades at attractive valuation levels.
Growth Score
ModerateBW-PA shows steady but slowing expansion.
Financial Health Score
ModerateBW-PA shows balanced financial health with some risks.
Profitability Score
WeakBW-PA struggles to sustain strong margins.
Key Financial Metrics
Is BW-PA Expensive or Cheap?
P/E Ratio
BW-PA trades at -16.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BW-PA's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values Babcock & Wilcox Enterprises, Inc. at -12.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 43.83 times EBITDA. This signals the market has high growth expectations.
How Well Does BW-PA Make Money?
Net Profit Margin
For every $100 in sales, Babcock & Wilcox Enterprises, Inc. keeps $-19.28 as profit after all expenses.
Operating Margin
Core operations generate 4.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $61.01 in profit for every $100 of shareholder equity.
ROA
Babcock & Wilcox Enterprises, Inc. generates $-17.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Babcock & Wilcox Enterprises, Inc. generates limited operating cash flow of $-36.46M, signaling weaker underlying cash strength.
Free Cash Flow
Babcock & Wilcox Enterprises, Inc. generates weak or negative free cash flow of $-53.22M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.47 in free cash annually.
FCF Yield
BW-PA converts -3.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-16.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
-12.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.61
vs 25 benchmark
ROA
Return on assets percentage
-0.17
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How BW-PA Stacks Against Its Sector Peers
| Metric | BW-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -16.73 | 25.99 | Better (Cheaper) |
| ROE | 61.01% | 1259.00% | Weak |
| Net Margin | -19.28% | -34891.00% (disorted) | Weak |
| Debt/Equity | -1.87 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 0.99 | 9.71 | Weak Liquidity |
| ROA | -17.01% | -1482943.00% (disorted) | Weak |
BW-PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Babcock & Wilcox Enterprises, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-52.05%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-61.66%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
21.97%
Industry Style: Cyclical, Value, Infrastructure
High Growth