One-glance verdict
Undervalued
$6.26 our estimate vs market $2.91
Wall Street consensus: $6.83 (9.1% higher than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
Broadwind, Inc.
BWEN · NCM · Industrials · Specialty Industrial Machinery
Current price
$2.91
52-week range
$1.90 - $5.70
Market cap
$68.84M
Balance sheet
Distressed
0.13x Concerning
Net debt $4.79M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 13.1% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Forward P/E (145.5x) is higher than trailing (16.2x) - earnings are expected to drop.
- Risk Net debt grew 36.5% over 3 years.
What this company does
Broadwind, Inc.
Broadwind, Inc. makes big metal parts and equipment, like towers for wind turbines and gears for things like oil rigs and power plants. Most of their money comes from selling these heavy-duty components to companies in the energy and infrastructure industries, and this matters because it shows how busy these sectors are and how much they need Broadwind's specialized products.
How the company got here
Broadwind, Inc., formerly known as Broadwind Energy, Inc., was founded in 1996 and is headquartered in Cicero, Illinois. The company has undergone a strategic shift, moving away from a heavy reliance on wind turbine components to focus on critical infrastructure and domestic power generation markets. This pivot, which included the sale of its Abilene, Texas facility, aims to reduce exposure to market risks and concentrate on higher-value, growth-oriented sectors. The name change in May 2020 signaled this broader market focus beyond just wind energy.
What it actually does
Broadwind manufactures and sells large, specialized structures, equipment, and components. Think of them as a heavy-duty industrial manufacturer that builds the essential parts for big, important machines. Their products are used in sectors like power generation, critical infrastructure, and other specialized industrial applications. They provide the heavy-duty metalwork and precision-engineered parts that keep major industries running.
Heavy Fabrications
This segment is all about making large, custom-built metal structures. They primarily produce steel towers and adapters, which are crucial components for wind turbines. They also create other heavy fabrications for various industrial customers. Essentially, if a project requires large, precisely engineered steel parts, this is the division that builds them. This part of the business has seen a decrease in revenue recently as the company strategically exits the wind market.
Gearing
The Gearing segment focuses on manufacturing precision gears, gearboxes, and related systems. These are the complex mechanical components that transmit power and enable movement in heavy machinery. Customers across diverse markets, including oil and gas, mining, wind energy, and general industrial applications, rely on these parts. This segment also offers heat treatment services to enhance the durability of metal parts. It has shown strong growth in orders and revenue recently.
Industrial Solutions
This segment provides a range of services to support complex industrial operations, particularly for the natural gas turbine market. They offer supply chain solutions, which means managing and providing necessary components like instrumentation, controls, and electrical parts. They also handle light fabrication, inventory management, and kitting and assembly services, essentially preparing and organizing parts for specific customer projects. This segment has experienced significant growth in both orders and revenue.
What management is betting on now
Broadwind's management is strategically focusing on higher-margin power generation and critical infrastructure markets. They believe these sectors, including oil and gas and renewables, are entering a long-term growth phase, sometimes referred to as a "super cycle." By shifting away from the more volatile wind market and concentrating on these areas, the company aims to improve profitability and achieve more consistent revenue. They are investing in technological upgrades to enhance efficiency and reduce costs in their manufacturing processes.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.70M
FY2024 Q4
$14.45M
FY2025 Q1
$-8.95M
FY2025 Q2
$-13.66M
FY2025 Q3
$3.79M
FY2025 Q4
$-187.00K
FY2026 Q1
$127.00K
FY2026 Q2
$-1.32M
Revenue
—
Net income
$-639.00K
Diluted EPS
—
Operating cash flow
$-871.00K
Free cash flow
$-1.32M
Fetching…
Sources
Revenue
—
Net income
$-495.00K
Diluted EPS
-0.02
Operating cash flow
$2.90M
Free cash flow
$127.00K
Fetching…
Sources
Revenue
—
Net income
$-862.00K
Diluted EPS
-0.03
Operating cash flow
$857.00K
Free cash flow
$-187.00K
Fetching…
Sources
Revenue
—
Net income
$7.46M
Diluted EPS
0.32
Operating cash flow
$4.26M
Free cash flow
$3.79M
Fetching…
Sources
Revenue
—
Net income
$-989.00K
Diluted EPS
-0.04
Operating cash flow
$-12.46M
Free cash flow
$-13.66M
Fetching…
Sources
Revenue
—
Net income
$-370.00K
Diluted EPS
-0.02
Operating cash flow
$-8.04M
Free cash flow
$-8.95M
Fetching…
Sources
Revenue
—
Net income
$-914.00K
Diluted EPS
-0.04
Operating cash flow
$14.79M
Free cash flow
$14.45M
Fetching…
Sources
Revenue
—
Net income
$74.00K
Diluted EPS
0.00
Operating cash flow
$2.44M
Free cash flow
$1.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $6.26 vs current price $2.91
Wall Street consensus is the average analyst price target: $6.83 (9.1% higher than our fair-value estimate).
Our most-likely fair value is $6.26 a share — about 115.2% above today's price of $2.91, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $4.8M. Interest coverage 0.1x.
Net debt
$4.79M
Interest coverage
0.13x
Broadwind, Inc.'s profit covers its interest bill about 0.1 times over. and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
BWEN
BASELINE
Broadwind, Inc.
Total debt $21.84M Interest coverage 0.13x This is the baseline the peer rows are being compared against.
Total debt $207.62M Interest coverage -0.91x -100% vs BWEN This peer has almost no interest-payment cushion compared with BWEN.
Total debt $19.46M Interest coverage 0.79x +493% vs BWEN Carries about 5.9x more debt cushion than BWEN.
Total debt $70.32M Interest coverage 4.48x +3,261% vs BWEN Carries about 33.6x more debt cushion than BWEN.
Total debt $393.40M Interest coverage 3.54x +2,558% vs BWEN Carries about 26.6x more debt cushion than BWEN.
Total debt $290.51M Interest coverage 6.08x +4,462% vs BWEN Carries about 45.6x more debt cushion than BWEN.
What you should know
The case for and against BWEN
3 Rewards
2 Risks
Rewards
-
Returns 13.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 5/10 years.
-
Trades at 16.2x P/E vs peer median 33.8x (52.2% cheaper).
Risks
-
Forward P/E (145.5x) is higher than trailing (16.2x) - earnings are expected to drop.
-
Net debt grew 36.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.17x
Forward P/E
145.50x
P/B
1.05x
P/S
0.40x
EV/EBITDA
7.59x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
11.8%
Operating margin
-1.0%
Net margin
3.2%
ROE
13.1%
ROA
1.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.33x
Current ratio
2.72x
Quick ratio
1.20x
Total debt
$21.84M
Total cash
$17.04M
Growth
How the business has been compounding
Revenue TTM
$146.78M
Revenue 5Y CAGR
-9.2%
EPS TTM
0.18
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$7.15M
Free CF TTM
$-19.02M
FCF margin
-13.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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