One-glance verdict
Undervalued
$6.07 our estimate vs market $3.98
Wall Street consensus: $6.83 (12.5% higher than our fair-value estimate)
34% below our estimate, below the bear case
Fundamentals snapshot
Broadwind, Inc.
BWEN · NCM · Industrials · Specialty Industrial Machinery
Current price
$3.98
52-week range
$1.88 - $5.70
Market cap
$94.16M
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 (88.4x) is higher than trailing (11.1x) - earnings are expected to drop.
- Risk Net debt grew 36.5% over 3 years.
What this company does
Broadwind, Inc.
Broadwind is a manufacturing company that makes massive steel structures, like the towers for wind turbines, and precision gears for heavy machinery. It earns money by selling these specialized, custom-built parts to other large companies in the energy, mining, and infrastructure sectors. Because its products are essential for building things like wind farms and power plants, the company's performance is often tied to broader spending on renewable energy and industrial projects.
How the company got here
Broadwind started in 1996 and was originally focused on the wind energy industry, making the large steel towers that hold wind turbines. To broaden its business, the company made acquisitions to add expertise in making gears and providing other industrial services. In 2020, it changed its name from Broadwind Energy, Inc. to Broadwind, Inc. to reflect that it now serves a wider range of customers beyond just wind power. Recently, the company made a major strategic shift by selling its main wind tower factory to focus on what it sees as more profitable and predictable business areas.
What it actually does
Broadwind is a manufacturing company that builds large, heavy, and highly specific metal products and components for other industrial companies. Think of them as a specialized workshop that other big companies hire to build the heavy-duty parts they need for their own products and projects. Their customers are mainly in the energy, mining, and general infrastructure (the basic physical structures needed for a society to function, like power grids) sectors. They sell their products through their own sales team as well as outside sales agents.
Heavy Fabrications
This part of the business makes very large and complex steel structures for customers in various industries. For a long time, its main product was the massive steel towers for wind turbines. However, the company has recently decided to exit the wind tower manufacturing business to focus on other areas. This segment now concentrates on other large-scale metal fabrication projects for industries like mining and construction.
Gearing
This segment is all about making and servicing gears and the complex gearboxes that house them. These are crucial components for a wide variety of heavy machinery used in industries like oil and gas drilling, mining, and steel production. This division also offers services like heat treating, which is a process that strengthens metal parts. This is a growing part of the business, with a significant increase in orders.
Industrial Solutions
This division acts as a support partner for large manufacturers, particularly those who build natural gas turbines for power plants. Instead of just making one part, this segment provides supply chain solutions (managing the entire process of getting components and materials). This includes putting together kits of parts, managing inventory, and assembling components like electrical boxes and fuel systems, which simplifies the final installation process for their customers. This segment has also seen strong growth in orders.
What management is betting on now
The company's leadership is now focused on being a 'pure-play' precision manufacturer for the power generation and critical infrastructure markets. They have deliberately moved away from the wind tower business, which they felt was too dependent on government policies and had too much competition. The strategy is to concentrate on higher-margin (meaning more profit is made on each sale) and more predictable business in areas like natural gas turbines and the broader power grid. Management also plans to potentially acquire other companies to expand its manufacturing capabilities in these targeted high-growth areas.
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 $6.07 vs current price $3.98
Wall Street consensus is the average analyst price target: $6.83 (12.5% higher than our fair-value estimate).
Our most-likely fair value is $6.07 a share — about 52.6% above today's price of $3.98, 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 $214.80M 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 11.1x P/E vs peer median 35.2x (68.6% cheaper).
Risks
-
Forward P/E (88.4x) is higher than trailing (11.1x) - 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)
11.06x
Forward P/E
88.44x
P/B
1.43x
P/S
0.55x
EV/EBITDA
10.20x
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
0.36
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
—
Payout ratio
0.0%
Last ex-div date
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