BWX Technologies is a supplier of nuclear components and fuel to the U.S. government; provides technical, management and site services to support governments in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components and services for the commercial nuclear power industry. 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 based in Lynchburg, Virginia.
BWXT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for BWX Technologies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that BWX Technologies Inc ranked in the 11th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for BWX Technologies Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5 years, is -0.06% -- higher than only 21.2% of stocks in our DCF forecasting set.
BWXT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.41% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), BWX Technologies Inc has a reliance on debt greater than just 24.41% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CFX, FLOW, ADSW, JCI, and KNX can be thought of as valuation peers to BWXT, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of BWX Technologies, Inc. New York, June 05, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of BWX Technologies, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.