Babcock Wilcox Price to Book vs. Current Ratio

BW Stock  USD 1.23  0.05  4.24%   
Based on the key profitability measurements obtained from Babcock Wilcox's financial statements, Babcock Wilcox Enterprises may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Babcock Wilcox's ability to earn profits and add value for shareholders. Price To Sales Ratio is likely to drop to 0.12 in 2024. Operating Cash Flow Sales Ratio is likely to drop to -0.04 in 2024. At this time, Babcock Wilcox's Operating Income is fairly stable compared to the past year. Non Operating Income Net Other is likely to climb to about 40.6 M in 2024, whereas Income Before Tax is likely to drop (73.7 M) in 2024.
For Babcock Wilcox profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Babcock Wilcox to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Babcock Wilcox Enterprises utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Babcock Wilcox's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Babcock Wilcox Enterprises over time as well as its relative position and ranking within its peers.
  
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Is Babcock Wilcox's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Babcock Wilcox. If investors know Babcock will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Babcock Wilcox listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.94)
Earnings Share
(1.05)
Revenue Per Share
11.227
Quarterly Revenue Growth
(0.04)
Return On Assets
(0.01)
The market value of Babcock Wilcox Enter is measured differently than its book value, which is the value of Babcock that is recorded on the company's balance sheet. Investors also form their own opinion of Babcock Wilcox's value that differs from its market value or its book value, called intrinsic value, which is Babcock Wilcox's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Babcock Wilcox's market value can be influenced by many factors that don't directly affect Babcock Wilcox's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Babcock Wilcox's value and its price as these two are different measures arrived at by different means. Investors typically determine if Babcock Wilcox is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Babcock Wilcox's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Babcock Wilcox Enter Current Ratio vs. Price to Book Fundamental Analysis

Babcock Current Ratio vs. Price to Book

Babcock Wilcox

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Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Babcock Wilcox

Current Ratio

 = 

Current Asset

Current Liabilities

 = 
1.70 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Babcock Current Ratio Comparison

Babcock Wilcox is currently under evaluation in current ratio category among related companies.

Use Babcock Wilcox in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Babcock Wilcox position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Babcock Wilcox will appreciate offsetting losses from the drop in the long position's value.

Babcock Wilcox Pair Trading

Babcock Wilcox Enterprises Pair Trading Analysis

The ability to find closely correlated positions to Babcock Wilcox could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Babcock Wilcox when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Babcock Wilcox - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Babcock Wilcox Enterprises to buy it.
The correlation of Babcock Wilcox is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Babcock Wilcox moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Babcock Wilcox Enter moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Babcock Wilcox can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Babcock Wilcox position

In addition to having Babcock Wilcox in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Recreation Thematic Idea Now

Recreation
Recreation Theme
Companies involved in production and services of recreational goods, foods, and accessories. The Recreation theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recreation Theme or any other thematic opportunities.
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When determining whether Babcock Wilcox Enter offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Babcock Wilcox's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Babcock Wilcox Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Babcock Wilcox Enterprises Stock:
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You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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When running Babcock Wilcox's price analysis, check to measure Babcock Wilcox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Babcock Wilcox is operating at the current time. Most of Babcock Wilcox's value examination focuses on studying past and present price action to predict the probability of Babcock Wilcox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Babcock Wilcox's price. Additionally, you may evaluate how the addition of Babcock Wilcox to your portfolios can decrease your overall portfolio volatility.
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To fully project Babcock Wilcox's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Babcock Wilcox Enter at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Babcock Wilcox's income statement, its balance sheet, and the statement of cash flows.
Potential Babcock Wilcox investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Babcock Wilcox investors may work on each financial statement separately, they are all related. The changes in Babcock Wilcox's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Babcock Wilcox's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.