BWX Technologies Inc. Common Stock (BWXT)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Generates $133 million in annual free cash flow (0.6% yield on market cap)
• High return on equity of 28.5% demonstrating efficient capital deployment
• Altman Z-Score of 5.4 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 18.7% demonstrates strong top-line momentum
• Established organization with 10,400 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($33) with negative 582% margin of safety—limited downside protection

AI Analysis

BWX Technologies Inc. Common Stock is a mid-cap industrials company valued at $20.6 billion. The business generates $3.2 billion in annual revenue with a 2.9% net margin and $133 million in free cash flow. From a quality standpoint, BWX shows Altman Z-Score of 5.4 confirms fortress-level solvency and strong 29% ROE. On valuation, the stock is commanding a steep 63.2x multiple, with trades far above its Graham Number ($33) with no margin of safety. Growth dynamics show revenue growing at 18.7% and profit growth of 30.9%. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

BWX's 19% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $133 million in annual free cash flow (0.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 63x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer