How does BWXT's valuation (P/E, EV/EBITDA, price-to-book) compare to peers in the nuclear and defense sectors? | BWXT (Aug 06, 2025) | Candlesense

How does BWXT's valuation (P/E, EV/EBITDA, price-to-book) compare to peers in the nuclear and defense sectors?

Answer

The press release you quoted reports BWX Technologies’ (ticker BWXT) second‑quarter 2025 operating results, but it does not include any valuation multiples—such as price‑to‑earnings (P/E), enterprise‑value‑to‑EBITDA (EV/EBITDA) or price‑to‑book (P/B)—for either BWXT or its competitors. Consequently, a direct, data‑driven comparison to peers in the nuclear‑energy and defense‑equipment sectors cannot be performed using only the information in the news release.

Below is a step‑by‑step outline of how you can obtain the needed figures and conduct a meaningful peer‑group analysis:


1. Gather the Required Valuation Data

Metric How to source it Typical data‑provider notes
P/E (price‑to‑earnings) • Current share price ÷ trailing twelve‑month (TTM) net earnings per share.
• Use Bloomberg, Refinitiv (formerly Thomson Reuters), FactSet, S&P Capital IQ, or free sites such as Yahoo Finance, MarketWatch, or Nasdaq.
Ensure the earnings figure is GAAP net income (or use the non‑GAAP net income if you want a “adjusted” P/E).
EV/EBITDA • EV = market‑cap + total debt – cash & equivalents.
• EBITDA = earnings before interest, taxes, depreciation & amortization (TTM).
• Sources: Bloomberg, FactSet, S&P Capital IQ, or the company’s 10‑K/10‑Q filings for balance‑sheet and income‑statement details.
Use the same EBITDA definition (GAAP vs. adjusted) across all companies for consistency.
Price‑to‑Book (P/B) • Share price ÷ book value per share (shareholder equity ÷ shares outstanding).
• Data available on Bloomberg, FactSet, or the “Key Ratios” tab on Yahoo Finance.
Book value should be taken from the most recent balance‑sheet (quarterly or annual).

2. Identify a Relevant Peer Group

Because BWXT operates at the intersection of nuclear‑energy services and defense‑government contracts, you’ll want to include companies from both clusters:

Nuclear‑focused peers (U.S.) Defense‑government‑contract peers (U.S.)
Orano (ORANO) – nuclear fuel & services (though European, often used as a benchmark)
Centrus Energy (CET) – nuclear fuel & services
Fluor Corp. (FLR) – nuclear engineering & construction (defense‑related)
Lockheed Martin (LMT) – major defense contractor
Northrop Grumman (NOC) – defense systems
Raytheon Technologies (RTX) – defense & aerospace
General Dynamics (GD) – defense & aerospace
Leidos (LDOS) – defense IT services

When you build the peer set, try to keep the *revenue size** and government‑contract exposure similar to BWXT (i.e., companies with > $1 bn annual revenue and ≥ 30 % of sales to U.S. government contracts).*


3. Compute the Ratios for BWXT and Peers

Below is a template you can fill in once you have the raw numbers:

Company P/E (TTM) EV/EBITDA P/B
BWXT =Current price / TTM EPS =EV / TTM EBITDA =Current price / Book‑value per share
Lockheed Martin (LMT) … … …
Northrop Grumman (NOC) … … …
General Dynamics (GD) … … …
Centrus Energy (CET) … … …
Fluor Corp. (FLR) … … …

If you prefer a *median** or average of the peer group, calculate those as well to see where BWXT stands relative to the “typical” peer valuation.*


4. Interpreting the Results

Scenario What it suggests about BWXT
P/E lower than peers The market may be pricing BWXT’s earnings more conservatively—potentially due to perceived higher cyclicality, longer project lead‑times, or greater exposure to regulatory risk.
P/E higher than peers Investors are assigning a premium, perhaps because BWXT’s recent backlog growth, strong government‑contract pipeline, or higher margins are viewed as more sustainable than in the broader sector.
EV/EBITDA below peers BWXT could be considered “undervalued” on an operating‑cash‑flow basis, indicating attractive acquisition potential or a cheaper entry point relative to cash‑generating ability.
EV/EBITDA above peers The market may be betting on higher future growth or superior margin expansion (e.g., from the record backlog mentioned in the release).
P/B below peers The market is valuing BWXT’s net assets conservatively—common for capital‑intensive firms where book value can be inflated by legacy plant and equipment.
P/B above peers A premium on the company’s tangible assets, possibly reflecting the strategic importance of its nuclear facilities and the “strategic” nature of its defense contracts.

5. Example (Illustrative) Numbers (as of a hypothetical date)

Company P/E EV/EBITDA P/B
BWXT 12.5x 7.2x 1.8x
Lockheed Martin 15.0x 9.5x 2.3x
Northrop Grumman 14.2x 8.8x 2.1x
General Dynamics 13.8x 9.0x 2.0x
Centrus Energy 10.0x 6.5x 1.5x
Fluor Corp. 11.5x 7.0x 1.7x

In this illustrative set, BWXT’s valuation sits *below** the large defense peers on all three multiples, but above the pure‑play nuclear peers (Centrus, Fluor). This would imply that BWXT is priced more like a mid‑size defense contractor than a niche nuclear‑services firm—consistent with the management’s comment about “record backlog” across both government‑operations and commercial segments.*

Takeaway: If the real‑world data mirrors the illustration, BWXT may be relatively inexpensive relative to the broader defense sector (potentially a buying opportunity) while still commanding a premium over pure nuclear‑services peers, reflecting its diversified revenue mix and strong government contract pipeline.


6. How to Obtain the Data Quickly (if you lack a premium terminal)

  1. Yahoo Finance – Search “BWXT”. Under “Statistics” you’ll find P/E, P/B, and “Enterprise Value/EBITDA”.
  2. Macrotrends – Provides historical P/E and EV/EBITDA charts for many U.S. equities.
  3. SEC Filings – The 10‑K (or 10‑Q) contains the balance sheet (for book value) and the cash‑flow statement (for EBITDA).
  4. Google Finance – Quick snapshot of P/E and P/B.
  5. Finviz – Offers a “valuation” snapshot for most tickers, including EV/EBITDA.

Once you have the three ratios for BWXT, repeat the same steps for each peer and compile them in a spreadsheet for side‑by‑side comparison.


7. Final Recommendation

  • Collect the latest market‑price and financial‑statement data for BWXT and the selected peer group.
  • Calculate the three multiples using the same fiscal period (TTM is standard for P/E and EV/EBITDA; book value should be the most recent quarter).
  • Benchmark BWXT against the median/average of the peer set to gauge relative valuation.
  • Interpret the spread in the context of BWXT’s recent operational highlights (record backlog, strong government‑operations performance) and any sector‑specific risk factors (e.g., nuclear‑regulatory exposure, defense‑budget cycles).

If you need a ready‑made spreadsheet or a quick snapshot for a specific date, let me know the date and the data source you prefer (e.g., Bloomberg, Yahoo Finance), and I can walk you through pulling the numbers or even generate a sample table based on publicly available data.

Other Questions About This News

Are there any notable changes in the company's capital allocation, such as dividends, share buybacks, or debt repayments? What are the key risks or uncertainties mentioned in the release that could affect future performance? What were the specific booking and backlog numbers for each segment, and how do they compare to prior periods? How does the company's backlog composition (government vs commercial) affect exposure to budgetary or policy changes? How does the performance of the Government Operations segment compare to commercial segments and to previous quarters? How does the reported earnings and revenue compare to analyst expectations and consensus estimates? How might this earnings release affect short‑term trading strategies, such as momentum or volatility trading? How much did the record backlog increase, and what does it imply for future cash flow and revenue visibility? What are the competitive advantages that led to the strong performance, and can they be maintained? What are the implications of the non‑GAAP adjustments in Exhibit 1 for underlying profitability and cash flow? What are the key drivers behind the 'exceptionally strong' financial results, and are they sustainable? What are the margins (gross, operating, and net) for the quarter, and how do they compare to prior quarters and peers? What is the guidance for the remainder of 2025 and 2026, particularly regarding earnings per share and cash flow? What is the outlook for the nuclear fuel and services market, and how might it impact BWXT's growth prospects?