The Babcock & Wilcox Company: Massive R&D Obscuring Earnings Power; 80%+ Upside
- BWC is a large manufacturer of utility steam boilers and nuclear components.
- Large operating losses in one segment are obscuring the true value of the company. Management has shown a willingness to stem these losses.
- The company has a 150-year operating history, few competitors, a 25% RoE, and a backlog of 2x the market cap.
- Under conservative revenue growth assumptions, the company has 80% upside with a large margin of safety.