Babcock & Wilcox Enterprises, Inc. [NYSE:BW]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Babcock & Wilcox Enterprises, Inc. [BW] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give BW an Underperform rating. The average 12-month price forecast for this stock is $0.50, with the high estimate being $0.50, the low estimate being $0.50 and the median estimate amounting to $0.50. This is compared to its latest closing price of $0.65.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Babcock & Wilcox Enterprises, Inc. [BW] is sitting at 4.00. This is compared to 1 month ago, when its average rating was 4.00.
For the quarter ending in Jun-18 Babcock & Wilcox Enterprises, Inc. [BW] generated $0.29 billion in sales. That’s 25.73% lower than the average estimate of $0.39 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 7 Mar (In 55 Days).
Fundamental Analysis of Babcock & Wilcox Enterprises, Inc. [BW]
Now let’s turn to look at profitability: with a current Operating Margin for Babcock & Wilcox Enterprises, Inc. [BW] sitting at -11.41 and its Gross Margin at +7.05, this company’s Net Margin is now -48.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -34.30, and its Return on Invested Capital has reached -63.70%. Its Return on Equity is -103.46, and its Return on Assets is -26.64. These metrics suggest that this Babcock & Wilcox Enterprises, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Babcock & Wilcox Enterprises, Inc. [BW] has generated a Total Debt to Total Equity ratio of 144.76. Similarly, its Total Debt to Total Capital is 59.14, while its Total Debt to Total Assets stands at 19.94. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 51.78, and its Long-Term Debt to Total Capital is 21.16. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is -1.91. The Enterprise Value to Sales for this firm is now 0.20, and its Total Debt to Enterprise Value stands at 0.58. Babcock & Wilcox Enterprises, Inc. [BW] has a Price to Book Ratio of 1.20.
Shifting the focus to workforce efficiency, Babcock & Wilcox Enterprises, Inc. [BW] earns $322,433 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 2.94 and its Total Asset Turnover is 1.09. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.87 and its Current Ratio is 0.98. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Babcock & Wilcox Enterprises, Inc. [BW] has 163.24M shares outstanding, amounting to a total market cap of $109.11M. Its stock price has been found in the range of 0.33 to 7.66. At its current price, it has moved by -91.27% from its 52-week high, and it has moved 102.55% from its 52-week low.
This stock’s Beta value is currently 2.01, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.62. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Babcock & Wilcox Enterprises, Inc. [BW] a Reliable Buy?
Babcock & Wilcox Enterprises, Inc. [BW] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.