What are the fundamentals predicting for the stock BWX Technologies Inc (BWXT)?
Investors Observer gives BWX Technologies Inc (BWXT) a low valuation score of 28 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. BWXT currently holds a better value than 28% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
BWXT has a 12-month price-to-earnings (PE) ratio of 19.2. The historical average of around 15 shows an average value for BWXT stock, as investors pay fair prices to the company’s earnings. BWXT’s average trailing PE ratio shows that the company has recently traded around its fair market value. Its 12-month earnings per share (EPS) of 2.67 justifies the current share price. However, leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. BWXT’s 12-month PE / Growth Ratio (PEG) of 3.25 is considered mediocre as the market overstates BWXT relative to the company’s expected earnings growth. BWXT’s PEG is derived from its forward price / earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and the stock price. Due to their incorporation of more fundamentals of the overall health of a business and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation metrics by analysts today. ‘hui.
Overall, these valuation metrics paint a pretty poor picture for BWXT at its current price due to an overvalued PEG ratio due to strong growth. BWXT’s PE and PEG are below the market average, resulting in a valuation score of 28. Click here for the full report on BWX Technologies Inc (BWXT) Stock.