CURTISS-WRIGHT CORP (CW) Stock Fundamental Analysis
NYSE:CW - New York Stock Exchange, Inc. - US2315611010 - Common Stock - Currency: USD
Overall CW gets a fundamental rating of 7 out of 10. We evaluated CW against 66 industry peers in the Aerospace & Defense industry. CW gets an excellent profitability rating and is at the same time showing great financial health properties. CW has a correct valuation and a medium growth rate. With these ratings, CW could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CW was profitable.
CW had a positive operating cash flow in the past year.
CW had positive earnings in each of the past 5 years.
In the past 5 years CW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.68%, CW belongs to the top of the industry, outperforming 89.39% 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 84.85% of its industry peers.
CW has a better Return On Invested Capital (11.08%) than 89.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CW is in line with the industry average of 8.39%.
The last Return On Invested Capital (11.08%) for CW is above the 3 year average (10.03%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 13.37%. This is amongst the best in the industry. CW outperforms 87.88% of its industry peers.
In the last couple of years the Profit Margin of CW has remained more or less at the same level.
CW has a better Operating Margin (17.89%) than 89.39% of its industry peers.
In the last couple of years the Operating Margin of CW has grown nicely.
Looking at the Gross Margin, with a value of 37.14%, CW is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
In the last couple of years the Gross Margin of CW has remained more or less at the same level.
| 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
CW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CW has less shares outstanding
CW has less shares outstanding than it did 5 years ago.
CW has a better debt/assets ratio than last year.
2.2 Solvency
CW has an Altman-Z score of 6.77. This indicates that CW is financially healthy and has little risk of bankruptcy at the moment.
CW has a better Altman-Z score (6.77) than 75.76% of its industry peers.
The Debt to FCF ratio of CW is 1.97, which is an excellent value as it means it would take CW, only 1.97 years of fcf income to pay off all of its debts.
CW has a Debt to FCF ratio of 1.97. This is amongst the best in the industry. CW outperforms 92.42% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CW is not too dependend on debt financing.
CW has a Debt to Equity ratio of 0.37. This is in the better half of the industry: CW outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 6.77 |
ROIC/WACC1.1
WACC10.07%
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 60.61% of its industry peers.
CW has a Quick Ratio of 1.28. This is a normal value and indicates that CW is financially healthy and should not expect problems in meeting its short term obligations.
CW has a Quick ratio (1.28) which is in line with its industry peers.
The current and quick ratio evaluation for CW is rather negative, while it does have 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
CW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.90%, which is quite good.
CW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.38% yearly.
The Revenue has grown by 9.77% in the past year. This is quite good.
CW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.64% yearly.
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
Based on estimates for the next years, CW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
The Revenue is expected to grow by 7.70% on average over the next years.
EPS Next Y20.93%
EPS Next 2Y14%
EPS Next 3Y12.62%
EPS Next 5Y12.48%
Revenue Next Year10.46%
Revenue Next 2Y8.3%
Revenue Next 3Y7.79%
Revenue Next 5Y7.7%
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 40.69, CW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CW is valued a bit cheaper than 62.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.65. CW is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 33.70, CW can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CW is valued a bit cheaper than 60.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CW to the average of the S&P500 Index (21.27), we can say CW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.69 | ||
| Fwd PE | 33.7 |
4.2 Price Multiples
CW's Enterprise Value to EBITDA ratio is in line with the industry average.
CW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CW is cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.88 | ||
| EV/EBITDA | 26.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CW has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CW's earnings are expected to grow with 12.62% in the coming years.
PEG (NY)1.94
PEG (5Y)4.86
EPS Next 2Y14%
EPS Next 3Y12.62%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, CW is not a good candidate for dividend investing.
CW's Dividend Yield is a higher than the industry average which is at 1.27.
Compared to an average S&P500 Dividend Yield of 2.44, CW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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.
CW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.36%
EPS Next 2Y14%
EPS Next 3Y12.62%
476.03
+9.19 (+1.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners86.68%
Inst Owner Change0.93%
Ins Owners0.46%
Ins Owner Change5.73%
Market Cap17.94B
Analysts83.53
Price Target437.59 (-8.08%)
Short Float %1.13%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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)13.38%
PT rev (3m)8.94%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)6.92%
EPS NY rev (1m)0.77%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.69 | ||
| Fwd PE | 33.7 | ||
| P/S | 5.58 | ||
| P/FCF | 36.88 | ||
| P/OCF | 32.55 | ||
| P/B | 7.01 | ||
| P/tB | 59.33 | ||
| EV/EBITDA | 26.7 |
EPS(TTM)11.7
EY2.46%
EPS(NY)14.13
Fwd EY2.97%
FCF(TTM)12.91
FCFY2.71%
OCF(TTM)14.62
OCFY3.07%
SpS85.27
BVpS67.9
TBVpS8.02
PEG (NY)1.94
PEG (5Y)4.86
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 | 6.77 |
F-Score7
WACC10.07%
ROIC/WACC1.1
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 Y20.93%
EPS Next 2Y14%
EPS Next 3Y12.62%
EPS Next 5Y12.48%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%12.97%
Revenue Next Year10.46%
Revenue Next 2Y8.3%
Revenue Next 3Y7.79%
Revenue Next 5Y7.7%
EBIT growth 1Y13.65%
EBIT growth 3Y11.18%
EBIT growth 5Y6.26%
EBIT Next Year38.83%
EBIT Next 3Y16.95%
EBIT Next 5Y13.48%
FCF growth 1Y68.03%
FCF growth 3Y11.72%
FCF growth 5Y6.57%
OCF growth 1Y68.29%
OCF growth 3Y11.97%
OCF growth 5Y5.25%