BWX TechnologiesBWXT -3.03%90 Operating Margin % is 9.91% as of Mar. 2026, which is 33% below its 10-year median of 14.90. GuruFocus rates BWXT with a GF Score™ of 90/100 and a GF Value™ of $141.23 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, BWX Technologies ranks better than 59.65% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
BWX Technologies Operating Margin % Related Terms
BWX Technologies Operating Margin % Historical Data
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The historical data trend for BWX Technologies's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BWXT vs PL, ARXS, TXT: Operating Margin % Comparison
For the Aerospace & Defense subindustry, BWX Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BWX Technologies Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BWX Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where BWX Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
BWX Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BWX Technologies (BWXT) has a Operating Margin % of 9.91% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on BWX Technologies and its competitors. This is 33% below median its historical median of 14.90. Over the past decade, BWX Technologies' Operating Margin % has ranged from 9.90 to 16.50. According to the industry distribution chart, BWX Technologies ranks #140 out of 347 companies in the Aerospace & Defense industry, placing it in the top 40.3%.
Is BWX Technologies' Operating Margin % too high?
BWX Technologies' current Operating Margin % of 9.91% is 33% below median its 10-year median of 14.90. Over the past 10 years, this metric has ranged from a low of 9.90 to a high of 16.50. The Aerospace & Defense industry median Operating Margin % is 7.75. BWX Technologies' value of 9.91% is 27.9% above this industry median. Based on the distribution chart, BWX Technologies ranks #140 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, BWX Technologies has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BWX Technologies' Operating Margin % compare to PL and ARXS?
According to the Aerospace & Defense industry distribution chart, BWX Technologies ranks #140 out of 347 companies for Operating Margin %. This puts BWX Technologies in the upper half of its industry. The industry median Operating Margin % is 7.75. BWX Technologies' value of 9.91% is 27.9% above this benchmark. Historically, BWX Technologies' own Operating Margin % has ranged from 9.90 to 16.50 over the past decade. While the company's 10-year median is 14.90 vs. the industry median of 7.75, BWX Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BWX Technologies's current Operating Margin % of 9.91% is 27.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on BWX Technologies and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BWX Technologies's current Operating Margin % is 9.91%, which is 33% below median its own 10-year median of 14.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BWX Technologies stock overvalued right now?
Based on GuruFocus' analysis, BWX Technologies (BWXT) is currently considered Significantly Overvalued. The stock's GF Value™ is $141.23, compared to a current price of $198.58 — trading 40.6% above its estimated fair value. The current Operating Margin % is 9.91%, which is 33% below median its 10-year median of 14.90 and 27.9% above the Aerospace & Defense industry median of 7.75. BWX Technologies' overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For BWX Technologies (BWXT), the current Operating Margin % is 9.91% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BWX Technologies (BWXT) Overvalued in 2026?
Based on GuruFocus' analysis, BWX Technologies stock appears to be overvalued.
The current stock price of $198.58 is trading 40.6% above its estimated GF Value™ of $141.23.
GuruFocus considers BWX Technologies to be Significantly Overvalued.
Key valuation signals for BWXT:
Operating Margin %: 9.91% (33% below median its 10-year median of 14.90)
GF Value™: $141.23 vs. price of $198.58 (40.6% above fair value)
Industry Position: 27.9% above the Aerospace & Defense median (#140 of 347)
No single metric tells the full story. See the BWXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BWX Technologies Inc is a specialty manufacturer and service provider of nuclear components, operating in two segments: Government Operations and Commercial Operations. The Government Operations segment produces naval nuclear reactors and fuel for the U.S. Naval Nuclear Propulsion Program, while the Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other high-level nuclear waste. The majority of the company's revenue comes from Government Operations, with sales principally in the United States, Canada, and other regions.
90GF Score
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