Broadwind, Inc. (NASDAQ: BWEN)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001120370
Market Cap 57.33 Mn
P/B 0.86
P/E 11.05
P/S 0.37
ROIC (Qtr) 8.59
Div Yield % 0.00
Rev 1y % (Qtr) 24.61
Total Debt (Qtr) 26.82 Mn
Debt/Equity (Qtr) 0.40
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About

Investment thesis

Bull case

  • Strong tangible asset base of 118.74M provides 4.43x coverage of total debt 26.82M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 118.74M provides 3.51x coverage of working capital 33.79M, indicating strong operational backing.
  • Tangible assets of 118.74M provide robust 14.27x coverage of other current liabilities 8.32M, indicating strong asset backing.
  • Strong tangible asset base of 118.74M provides 9.48x coverage of acquisition spending 12.52M, enabling strategic growth.
  • Strong tangible asset base of 118.74M provides 131.06x coverage of intangibles 906000, indicating robust asset quality.

Bear case

  • Operating cash flow of (1.45M) barely covers its investment activities of 9.60M, with a coverage ratio of -0.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 1.20M against inventory of 45.76M, the 0.03 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 1.20M provide limited coverage of acquisition spending of 12.52M, which is 0.10x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (1.45M) shows concerning coverage of stock compensation expenses of 1.01M, with a -1.44 ratio indicating potential earnings quality issues.
  • Free cash flow of (4.38M) provides weak coverage of capital expenditures of 2.92M, with a -1.50 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.83 2.28
EV to Cash from Ops. EV/CFO -68.60 37.14
EV to Debt EV to Debt 3.71 34.39
EV to EBIT EV/EBIT 11.68 27.71
EV to EBITDA EV/EBITDA 6.65 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF -22.74 133.36
EV to Market Cap EV to Market Cap 1.74 1.04
EV to Revenue EV/Rev 0.65 39.88
Price to Book Value [P/B] P/B 0.86 6.22
Price to Earnings [P/E] P/E 11.05 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) 2.59 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 30.42 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.66 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 36.47 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.79 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 25.63 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 52.30 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 57.14 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) -141.84 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -32.02 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.29 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.03 3.01
Current Ratio Curr Ratio (Qtr) 1.97 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 0.38
Interest Cover Ratio Int Coverage (Qtr) 2.59 12.34
Times Interest Earned Times Interest Earned (Qtr) 2.59 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.80 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 5.53 -7,413.30
EBT Margin % EBT Margin % (Qtr) 3.40 -9,015.79
Gross Margin % Gross Margin % (Qtr) 10.80 -32.61
Net Profit Margin % Net Margin % (Qtr) 3.40 -7,962.06