Babcock & Wilcox Enterprises, Inc. Fundamental Analysis (NYSE: BW-PA)
Babcock & Wilcox Enterprises, Inc. Fundamental Analysis (NYSE: BW-PA)
Babcock & Wilcox Enterprises, Inc. (NYSE: BW-PA) shows weak financial fundamentals with a PE ratio of -98.80, profit margin of 1.92%, and ROE of -55.53%. The company generates $0.1B 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 -64.8/100 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 -98.80 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BW-PA's PEG of -0.59 indicates potential undervaluation.
Price to Book
The market values Babcock & Wilcox Enterprises, Inc. at 6.64 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.56 times EBITDA. This is generally considered low.
How Well Does BW-PA Make Money?
Net Profit Margin
For every $100 in sales, Babcock & Wilcox Enterprises, Inc. keeps $1.92 as profit after all expenses.
Operating Margin
Core operations generate 3.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-55.53 in profit for every $100 of shareholder equity.
ROA
Babcock & Wilcox Enterprises, Inc. generates $2.25 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 $-6.94M, signaling weaker underlying cash strength.
Free Cash Flow
Babcock & Wilcox Enterprises, Inc. generates weak or negative free cash flow of $-8.13M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.06 in free cash annually.
FCF Yield
BW-PA converts -21.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-98.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.56
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How BW-PA Stacks Against Its Sector Peers
| Metric | BW-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -98.80 | 27.44 | Better (Cheaper) |
| ROE | -55.53% | 1185.00% | Weak |
| Net Margin | 1.92% | -2.00% (disorted) | Weak |
| Debt/Equity | 2.25 | 0.85 | Weak (High Leverage) |
| Current Ratio | 1.79 | 22.12 | Neutral |
| ROA | 2.25% | -1355419.00% (disorted) | Weak |
BW-PA outperforms its industry in 1 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
-61.92%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
21.97%
Industry Style: Cyclical, Value, Infrastructure
High Growth