CURTISS-WRIGHT CORP (CW) Stock Fundamental Analysis
NYSE:CW - New York Stock Exchange, Inc. - US2315611010 - Common Stock - Currency: USD
CW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. CW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CW is quite expensive at the moment. It does show a decent growth rate. These ratings would make CW suitable for quality investing!
1. Profitability
1.1 Basic Checks
CW had positive earnings in the past year.
In the past year CW had a positive cash flow from operations.
Each year in the past 5 years CW has been profitable.
Each year in the past 5 years CW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.68%, CW belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
CW has a Return On Equity of 16.80%. This is amongst the best in the industry. CW outperforms 85.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.08%, CW belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
CW had an Average Return On Invested Capital over the past 3 years of 10.03%. This is above the industry average of 8.03%.
The 3 year average ROIC (10.03%) for CW is below the current ROIC(11.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.68% | ||
| ROE | 16.8% | ||
| ROIC | 11.08% |
ROA(3y)7.47%
ROA(5y)6.76%
ROE(3y)15.54%
ROE(5y)14.45%
ROIC(3y)10.03%
ROIC(5y)9.53%
1.3 Margins
CW's Profit Margin of 13.37% is amongst the best of the industry. CW outperforms 87.50% of its industry peers.
CW's Profit Margin has been stable in the last couple of years.
CW has a Operating Margin of 17.89%. This is amongst the best in the industry. CW outperforms 90.63% of its industry peers.
CW's Operating Margin has improved in the last couple of years.
CW's Gross Margin of 37.14% is fine compared to the rest of the industry. CW outperforms 73.44% of its industry peers.
CW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.89% | ||
| PM (TTM) | 13.37% | ||
| GM | 37.14% |
OM growth 3Y3.26%
OM growth 5Y1.55%
PM growth 3Y7.28%
PM growth 5Y0.97%
GM growth 3Y-0.09%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CW is creating some value.
The number of shares outstanding for CW has been reduced compared to 1 year ago.
CW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CW has an improved debt to assets ratio.
2.2 Solvency
CW has an Altman-Z score of 6.61. This indicates that CW is financially healthy and has little risk of bankruptcy at the moment.
CW has a Altman-Z score of 6.61. This is in the better half of the industry: CW outperforms 76.56% of its industry peers.
CW has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
CW has a Debt to FCF ratio of 1.97. This is amongst the best in the industry. CW outperforms 92.19% of its industry peers.
CW has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CW's Debt to Equity ratio of 0.37 is fine compared to the rest of the industry. CW outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 6.61 |
ROIC/WACC1.11
WACC10.01%
2.3 Liquidity
A Current Ratio of 1.89 indicates that CW should not have too much problems paying its short term obligations.
CW has a worse Current ratio (1.89) than 60.94% of its industry peers.
A Quick Ratio of 1.28 indicates that CW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.28, CW is in line with its industry, outperforming 42.19% of the companies in the same industry.
CW does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.90% over the past year.
Measured over the past years, CW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.38% on average per year.
Looking at the last year, CW shows a quite strong growth in Revenue. The Revenue has grown by 9.77% in the last year.
Measured over the past years, CW shows a small growth in Revenue. The Revenue has been growing by 4.64% on average per year.
EPS 1Y (TTM)18.9%
EPS 3Y13.93%
EPS 5Y8.38%
EPS Q2Q%41.71%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%12.97%
3.2 Future
The Earnings Per Share is expected to grow by 12.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y20.01%
EPS Next 2Y13.17%
EPS Next 3Y12.07%
EPS Next 5Y12.48%
Revenue Next Year10.21%
Revenue Next 2Y8.09%
Revenue Next 3Y7.63%
Revenue Next 5Y7.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.43, CW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CW is valued a bit cheaper than 60.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. CW is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 32.30 indicates a quite expensive valuation of CW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CW is on the same level as its industry peers.
CW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.43 | ||
| Fwd PE | 32.3 |
4.2 Price Multiples
CW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CW indicates a somewhat cheap valuation: CW is cheaper than 78.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.84 | ||
| EV/EBITDA | 25.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CW does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CW may justify a higher PE ratio.
CW's earnings are expected to grow with 12.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)4.59
EPS Next 2Y13.17%
EPS Next 3Y12.07%
5. Dividend
5.1 Amount
CW has a yearly dividend return of 0.23%, which is pretty low.
CW's Dividend Yield is a higher than the industry average which is at 1.36.
Compared to an average S&P500 Dividend Yield of 2.40, CW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
The dividend of CW has a limited annual growth rate of 4.82%.
CW has paid a dividend for at least 10 years, which is a reliable track record.
CW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years8
Div Non Decr Years33
5.3 Sustainability
7.36% of the earnings are spent on dividend by CW. This is a low number and sustainable payout ratio.
The dividend of CW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.36%
EPS Next 2Y13.17%
EPS Next 3Y12.07%
449.64
+3.06 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners86.59%
Inst Owner Change0.92%
Ins Owners0.46%
Ins Owner Change4.14%
Market Cap16.95B
Analysts83.53
Price Target385.96 (-14.16%)
Short Float %1.15%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.83
Dividend Growth(5Y)4.82%
DP7.36%
Div Incr Years8
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.8%
Min EPS beat(2)2.8%
Max EPS beat(2)14.8%
EPS beat(4)4
Avg EPS beat(4)9.03%
Min EPS beat(4)2.8%
Max EPS beat(4)14.8%
EPS beat(8)8
Avg EPS beat(8)7.78%
EPS beat(12)10
Avg EPS beat(12)5.9%
EPS beat(16)12
Avg EPS beat(16)4.63%
Revenue beat(2)2
Avg Revenue beat(2)1.62%
Min Revenue beat(2)1.36%
Max Revenue beat(2)1.88%
Revenue beat(4)4
Avg Revenue beat(4)2.31%
Min Revenue beat(4)1.36%
Max Revenue beat(4)3.55%
Revenue beat(8)8
Avg Revenue beat(8)3.07%
Revenue beat(12)9
Avg Revenue beat(12)1.35%
Revenue beat(16)10
Avg Revenue beat(16)0.46%
PT rev (1m)-3.92%
PT rev (3m)-4.55%
EPS NQ rev (1m)5.9%
EPS NQ rev (3m)5.75%
EPS NY rev (1m)3.53%
EPS NY rev (3m)2.73%
Revenue NQ rev (1m)2.39%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)1.07%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.43 | ||
| Fwd PE | 32.3 | ||
| P/S | 5.27 | ||
| P/FCF | 34.84 | ||
| P/OCF | 30.75 | ||
| P/B | 6.62 | ||
| P/tB | 56.04 | ||
| EV/EBITDA | 25.75 |
EPS(TTM)11.7
EY2.6%
EPS(NY)13.92
Fwd EY3.1%
FCF(TTM)12.91
FCFY2.87%
OCF(TTM)14.62
OCFY3.25%
SpS85.27
BVpS67.9
TBVpS8.02
PEG (NY)1.92
PEG (5Y)4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.68% | ||
| ROE | 16.8% | ||
| ROCE | 14.38% | ||
| ROIC | 11.08% | ||
| ROICexc | 11.75% | ||
| ROICexgc | 29.26% | ||
| OM | 17.89% | ||
| PM (TTM) | 13.37% | ||
| GM | 37.14% | ||
| FCFM | 15.14% |
ROA(3y)7.47%
ROA(5y)6.76%
ROE(3y)15.54%
ROE(5y)14.45%
ROIC(3y)10.03%
ROIC(5y)9.53%
ROICexc(3y)11.07%
ROICexc(5y)10.36%
ROICexgc(3y)31.52%
ROICexgc(5y)29.76%
ROCE(3y)13.02%
ROCE(5y)12.36%
ROICexcg growth 3Y10.1%
ROICexcg growth 5Y1.55%
ROICexc growth 3Y7.83%
ROICexc growth 5Y0.32%
OM growth 3Y3.26%
OM growth 5Y1.55%
PM growth 3Y7.28%
PM growth 5Y0.97%
GM growth 3Y-0.09%
GM growth 5Y0.48%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 58.02% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.28% | ||
| Profit Quality | 113.18% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 6.61 |
F-Score7
WACC10.01%
ROIC/WACC1.11
Cap/Depr(3y)43.06%
Cap/Depr(5y)41.22%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.73%
Profit Quality(3y)106.77%
Profit Quality(5y)111.65%
High Growth Momentum
Growth
EPS 1Y (TTM)18.9%
EPS 3Y13.93%
EPS 5Y8.38%
EPS Q2Q%41.71%
EPS Next Y20.01%
EPS Next 2Y13.17%
EPS Next 3Y12.07%
EPS Next 5Y12.48%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%12.97%
Revenue Next Year10.21%
Revenue Next 2Y8.09%
Revenue Next 3Y7.63%
Revenue Next 5Y7.6%
EBIT growth 1Y13.65%
EBIT growth 3Y11.18%
EBIT growth 5Y6.26%
EBIT Next Year38.83%
EBIT Next 3Y16.95%
EBIT Next 5Y11.91%
FCF growth 1Y68.03%
FCF growth 3Y11.72%
FCF growth 5Y6.57%
OCF growth 1Y68.29%
OCF growth 3Y11.97%
OCF growth 5Y5.25%