BW Stock Fair Value Calculation – BABCOCK & WILCOX ENTERPRISES Reports Second Quarter Earnings for FY2023
August 22, 2023
🌥️Earnings Overview
Babcock & Wilcox Enterprises ($NYSE:BW) announced their second-quarter FY2023 earnings results, for the period ending June 30 2023. Total revenue for the quarter was reported at USD 305.2 million, showing an increase of 38.1% from the same quarter in the previous year. Net income for the quarter was -5.1 million, compared to -2.6 million in FY2022 Q2.
Price History
The stock opened at $5.1 and closed at $5.2, up by 1.0% from its previous closing price of $5.2. The company reported strong year over year growth, driven by increased revenues and cost savings initiatives. This growth was further fueled by the company’s continued focus on cost-cutting measures and efficiency improvements.
This increase was driven by higher sales and improved efficiency. BABCOCK & WILCOX ENTERPRISES has delivered strong financial results in the second quarter of 2023 and has continued to demonstrate its resilience in a challenging global economy. The company is well-positioned to capitalize on its strong performance and drive future growth in the long term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BW. More…
| Total Revenues | Net Income | Net Margin |
| 1.03k | -44.47 | -2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BW. More…
| Operations | Investing | Financing |
| 10.7 | -7.38 | 0.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BW. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 986.88 | 999.9 | -0.15 |
Key Ratios Snapshot
Some of the financial key ratios for BW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.7% | -35.4% | 2.7% |
| FCF Margin | ROE | ROA |
| -0.5% | -144.7% | 1.8% |
Analysis – BW Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of BABCOCK & WILCOX ENTERPRISES’ wellbeing. Using our proprietary Valuation Line, we have calculated the fair value of BABCOCK & WILCOX ENTERPRISES share to be around $8.1. Unfortunately, the stock is currently being traded at $5.2, which is a 35.6% undervaluation. We believe that investing in BABCOCK & WILCOX ENTERPRISES now is a wise decision, as it has been demonstrated that the company’s share has the potential to increase in value. More…
Peers
The company operates in three segments: Industrial, Commercial, and Government. The company was founded in 1867 and is headquartered in Charlotte, North Carolina. Babcock & Wilcox’s main competitors are Siemens Energy AG, Capstone Green Energy Corp, and Thermon Group Holdings Inc. Babcock & Wilcox has a market capitalization of $1.6 billion, while Siemens Energy AG has a market capitalization of $76.4 billion, Capstone Green Energy Corp has a market capitalization of $560 million, and Thermon Group Holdings Inc has a market capitalization of $1.1 billion.
– Siemens Energy AG ($OTCPK:SMNEY)
Siemens Energy AG is a German multinational conglomerate company headquartered in Munich and the largest industrial manufacturing company in Europe with branch offices abroad. The principal divisions of the company are Industry, Energy, Healthcare (Siemens Healthineers), and Infrastructure & Cities, which represent the main activities of the company. Siemens Energy AG offers a wide range of products and services in the areas of power generation and distribution, oil and gas production, and transmission as well as medical diagnosis. The company has a strong global presence with around 372,000 employees in more than 190 countries.
– Capstone Green Energy Corp ($NASDAQ:CGRN)
Capstone Green Energy Corp is a Canadian renewable energy company. The company has a market cap of 36.14M as of 2022 and a Return on Equity of -207.53%. Capstone Green Energy Corp is engaged in the development, construction, and operation of renewable energy projects. The company has developed a portfolio of renewable energy projects in Canada, the United States, and Europe.
– Thermon Group Holdings Inc ($NYSE:THR)
Thermon Group Holdings Inc., through its subsidiaries, provides thermal engineered industrial process heating solutions for the energy, chemical processing, pulp and paper, and general industrial end markets worldwide. The company operates in two segments, Energy and Chemical Processing, and Pulp and Paper. It offers a range of heat tracing products, including heat transfer compounds, steam tracing, electric tracing, and analytical and monitoring products; and prefabricated gas-fired infrared heaters. The company also provides safety and environmental products, such as fire suppression systems, safety showers, and eye washes. In addition, it offers field services, such as installation, start-up assistance, maintenance, and repair services. The company sells its products through direct sales force, independent sales representatives, and distributors. Thermon Group Holdings Inc. was founded in 1947 and is headquartered in San Antonio, Texas.
Summary
BABCOCK & WILCOX ENTERPRISES have reported their second quarter earnings results for FY2023, with total revenue increasing by 38.1% compared to the previous year. The net income was -5.1 million, which is a decrease from the previous year. This pattern of increased revenue but decreased net income could be indicative of the need for cost-cutting or other adjustments to the company’s operating strategies in order to remain profitable. Investors should carefully monitor the financial and operational performance of BABCOCK & WILCOX ENTERPRISES to determine if the current strategies are sufficient or if additional changes need to be made.
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