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Babcock & Wilcox Enterprises has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Babcock & Wilcox Enterprises's Interest Coverage for the quarter that ended in Jun. 2026 was 2.46.
Babcock & Wilcox Enterprises's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.25.
As of today, Babcock & Wilcox Enterprises's Altman Z-Score is -0.80.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Babcock & Wilcox Enterprises has the Financial Strength Rank of 4.
Babcock & Wilcox Enterprises Financial Strength Related Terms
BW vs AMSC, TNC, GHM: Financial Strength Comparison
For the Specialty Industrial Machinery subindustry, Babcock & Wilcox Enterprises's Financial Strength, along with its competitors' market caps and Financial Strength 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.
Babcock & Wilcox Enterprises Financial Strength vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Babcock & Wilcox Enterprises's Financial Strength distribution charts can be found below:
* The bar in red indicates where Babcock & Wilcox Enterprises's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Babcock & Wilcox Enterprises has a Z-score of -0.80, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -0.8 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Babcock & Wilcox Enterprises (BW) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Babcock & Wilcox Enterprises and its competitors. This is 33% above median its historical median of 3.00. Over the past decade, Babcock & Wilcox Enterprises' Financial Strength has ranged from 2.00 to 7.00.
Is Babcock & Wilcox Enterprises' Financial Strength too high?
Babcock & Wilcox Enterprises' current Financial Strength of 4 is 33% above median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. Overall, Babcock & Wilcox Enterprises has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Babcock & Wilcox Enterprises' Financial Strength compare to AMSC and TNC?
Babcock & Wilcox Enterprises' Financial Strength of 4 can be compared against companies in the Industrial Products industry. Historically, Babcock & Wilcox Enterprises' own Financial Strength has ranged from 2.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Babcock & Wilcox Enterprises and its competitors. Babcock & Wilcox Enterprises's current Financial Strength is 4, which is 33% above median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babcock & Wilcox Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Babcock & Wilcox Enterprises (BW) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.30, compared to a current price of $7.16 — trading 211.3% above its estimated fair value. The current Financial Strength is 4, which is 33% above median its 10-year median of 3.00. Babcock & Wilcox Enterprises' overall GF Score™ is 50/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Babcock & Wilcox Enterprises (BW), the current Financial Strength is 4 as of Jun. 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 Babcock & Wilcox Enterprises (BW) Overvalued in 2026?
Based on GuruFocus' analysis, Babcock & Wilcox Enterprises stock appears to be overvalued.
The current stock price of $7.16 is trading 211.3% above its estimated GF Value™ of $2.30.
GuruFocus considers Babcock & Wilcox Enterprises to be Significantly Overvalued.
Key valuation signals for BW:
Financial Strength: 4 (33% above median its 10-year median of 3.00)
GF Value™: $2.30 vs. price of $7.16 (211.3% above fair value)
No single metric tells the full story. See the BW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Babcock & Wilcox Enterprises Inc is an energy technologies provider offering energy and emissions control solutions to a broad range of industrial, electrical utility, municipal, and other customers. It offers technologies that utilize coal, natural gas, hydrogen, waste, and biomass to produce energy, environmental solutions, and carbon capture systems. The company's product portfolio comprises steam generation systems, environmental solutions, combustion and fuel systems, and related equipment and services. Additionally, it offers specialized technologies (BrightLoop) in industrial energy production, including hydrogen and syngas. Geographically, the company generates maximum revenue from the United States, and the rest from Canada, the UK, Indonesia, the Philippines, and other markets.
50GF Score
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