Babcock & Wilcox Enterprises (BW) Stock Analysis & Winston Score

Babcock & Wilcox builds equipment and systems that help power plants and industrial facilities generate energy and manage waste. Its core products include boilers, emissions control systems, and renewable energy technology, sold mainly to utilities, governments, and large industrial companies. The company has been around for over 150 years and has deep experience in both fossil fuel and clean energy systems.

Babcock & Wilcox earns money by selling equipment, providing engineering services, and offering long-term maintenance contracts to its customers. It operates primarily in North America but also has projects in Europe and other international markets, and its long history gives it established relationships with large utility clients that are hard for newer competitors to displace. The key growth driver is demand for cleaner energy solutions, including waste-to-energy and carbon capture technology, though the company carries a significant debt load that limits its financial flexibility and remains a meaningful risk for investors.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-130.8% YoY

YoY Growth Rate

Earnings declining

Insider Activity

10.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$107M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Babcock & Wilcox Enterprises is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

20.3%

Thin — 20.3% gross margin

Operating Margin

-0.5%

Losing money on operations — -0.5%

ROCE

-1.3%

Weak — -1.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-3.3%

Shrinking sales (-3.3% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-9.3%

Burning cash (-9.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

0.85x

Dangerous — barely covers interest (0.8x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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