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 12th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for BWXT, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 86. Its equity weight surpasses that of 74.3% of free cash flow generating stocks in the Industrials sector.
The company's compound free cash flow growth rate over the past 4.81 years comes in at -0.04%; that's greater than only 23.45% of US stocks we're applying DCF forecasting to.
BWX Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 9.87. This coverage rate is greater than that of 73.25% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of BWX Technologies Inc? See ALJJ, DEWY, LAWS, CVA, and KMT.