This company combines two things that investors love: a key role in the U.S. nuclear defense industry and very decent, steady revenue growth. Revenues have been growing at high single-digit to low double-digit percentage rates in recent years, the backlog is stretched out for years to come, and new contracts with the U.S. Navy secure work essentially through 2030.
But at the same time, it's a typical "quality but more expensive" story. The valuation is around a P/E of 50, P/S over 5 and P/B over 13, while the debt (Net Debt/EBITDA over 5 times) means that much of the growth is debt-fuelled. The dividend is there, but with a yield of around 1% it is a cosmetic bonus. Those who go into this stock are mainly buying long-term nuclear contracts and an oligopoly position in critical infrastructure, not a cheap cash-flow title.
Top points of analysis
Revenues are growing steadily and rapidly: over 2022-2025, total revenues have risen from $2.23bn to $3.20bn, equivalent to cumulative growth of…