Company Overview
Broadwind, Inc. manufactures and sells structures, equipment, and components for power generation, critical infrastructure, and other specialized applications within the United States market. The company operates within the Industrials sector and the Specialty Industrial Machinery industry, positioning it as a provider of essential physical assets required for energy and infrastructure projects. In terms of scale, the company holds a market capitalization of $45.92M, generates annual revenue of $158.05M, and employs 341 individuals. These valuation and revenue figures indicate that Broadwind is a mid-sized entity with a specialized operational footprint that serves niche segments of the industrial machinery landscape. The relatively modest market cap compared to its revenue suggests a smaller investor base or specific market dynamics typical of specialized industrial manufacturers, while the employee count reflects a moderate organizational size capable of executing complex fabrication and industrial solutions projects across its designated segments.
Financial Health
The company reported revenue of $158.05M and net income of $5.24M for the trailing twelve months, with an EBITDA of $6.76M. The significant gap between the $158.05M in revenue and the $5.24M in net income reveals a cost structure where operating expenses and taxes consume a substantial portion of gross receipts before reaching the bottom line. However, the EBITDA of $6.76M provides a clearer view of operational profitability before interest, taxes, depreciation, and amortization, indicating that core operations generate positive cash flow before capital allocation decisions. Despite positive EBITDA, the free cash flow stands at -$17,407,376, which suggests that capital expenditures or working capital requirements currently exceed operating cash generation, limiting immediate financial flexibility for dividends or major acquisitions without external financing. The gross margin is 10.2%, the operating margin is -15.3%, and the profit margin is 3.3%, indicating that while the company sells products at a modest gross profit, high operating expenses have suppressed operating income in the recent period. In terms of liquidity and leverage, total cash available is $852,000 while total debt stands at $31.55M, resulting in a debt-to-equity ratio of 58.28, which indicates a leveraged balance sheet rather than a conservative one. The current ratio is 2.03, suggesting that the company possesses more than double the current assets necessary to cover its short-term liabilities, providing a buffer for operational continuity. Furthermore, the return on equity is 8.3% and the return on assets is 0.2%, revealing that while equity holders are seeing a return on their invested capital, the overall asset base is generating very low returns, potentially due to the high debt load or the capital-intensive nature of the fabrication business.
Valuation Assessment
The trailing P/E ratio is 8.57 and the forward P/E is 17.38, implying that the market expects earnings to increase significantly in the future to justify the higher forward multiple, though the gap suggests current earnings are depressed relative to future expectations. The price-to-book ratio is 0.69, indicating that the stock trades at a discount to its book value, which often occurs in capital-intensive industrial companies where asset values are high but market pricing reflects operational challenges. The price-to-sales ratio is 0.29 and the EV/EBITDA is 11.33, suggesting that the company is valued at a fraction of its revenue generation relative to peers, while the EV/EBITDA multiple places it in a moderate valuation band relative to its earnings before interest and taxes. The 52-week high is $4.15 and the 52-week low is $1.41; without a specific current price provided in the source data, the valuation relative to this range cannot be precisely calculated, but the wide trading band indicates significant price volatility over the past year. The beta value is 1.49, meaning the stock exhibits higher price volatility relative to the broader market, moving approximately 49% more than the market index during periods of high volatility.
Growth & Income
The revenue growth year-over-year is -35.5% and earnings growth year-over-year is N/A, indicating a contraction in top-line sales that impacts the overall business trajectory. Since earnings growth is not available due to recent performance metrics, a direct comparison of earnings versus revenue growth rates is not possible, but the revenue decline suggests a challenging market environment or a strategic shift in order intake for the Heavy Fabrications segment. Broadwind, Inc. does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company reinvests its earnings back into the business or uses them to service debt rather than distributing cash to shareholders. The overall growth and income profile is characterized by a period of revenue contraction and a lack of dividend income, reflecting a phase of consolidation or market adjustment rather than expansion or income generation for shareholders.