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 67 industry peers in the Aerospace & Defense industry. CW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CW has a correct valuation and a medium growth rate. These ratings could make CW a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year CW was profitable.
In the past year CW had a positive cash flow from operations.
Each year in the past 5 years CW has been profitable.
In the past 5 years CW always reported a positive cash flow from operatings.
1.2 Ratios
CW has a Return On Assets of 8.68%. This is amongst the best in the industry. CW outperforms 91.04% of its industry peers.
Looking at the Return On Equity, with a value of 16.80%, CW belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
CW has a better Return On Invested Capital (11.08%) than 89.55% 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 8.58%.
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 has a Profit Margin of 13.37%. This is amongst the best in the industry. CW outperforms 88.06% of its industry peers.
CW's Profit Margin has been stable in the last couple of years.
CW has a better Operating Margin (17.89%) than 89.55% of its industry peers.
CW's Operating Margin has improved in the last couple of years.
The Gross Margin of CW (37.14%) is better than 76.12% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CW is creating some value.
CW has less shares outstanding than it did 1 year ago.
CW has less shares outstanding than it did 5 years ago.
CW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.19 indicates that CW is not in any danger for bankruptcy at the moment.
CW's Altman-Z score of 7.19 is fine compared to the rest of the industry. CW outperforms 74.63% 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.
With an excellent Debt to FCF ratio value of 1.97, CW belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
CW has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
CW has a Debt to Equity ratio of 0.37. This is in the better half of the industry: CW outperforms 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.19 |
ROIC/WACC1.12
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.89 indicates that CW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.89, CW is in line with its industry, outperforming 40.30% of the companies in the same industry.
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 of 1.28. This is comparable to the rest of the industry: CW outperforms 44.78% of 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.
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
CW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
Based on estimates for the next years, CW will show a small growth in Revenue. The Revenue will grow by 7.70% on average per year.
EPS Next Y21.08%
EPS Next 2Y14.07%
EPS Next 3Y12.7%
EPS Next 5Y12.48%
Revenue Next Year10.49%
Revenue Next 2Y8.41%
Revenue Next 3Y7.87%
Revenue Next 5Y7.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.53 indicates a quite expensive valuation of CW.
Based on the Price/Earnings ratio, CW is valued a bit cheaper than 61.19% of the companies in the same industry.
CW is valuated expensively when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.01 indicates a quite expensive valuation of CW.
CW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, CW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.53 | ||
| Fwd PE | 36.01 |
4.2 Price Multiples
CW's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CW is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.46 | ||
| EV/EBITDA | 29.16 |
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 12.70% in the coming years.
PEG (NY)2.07
PEG (5Y)5.2
EPS Next 2Y14.07%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, CW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.19, CW pays a bit more dividend than its industry peers.
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 | 0.2% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y14.07%
EPS Next 3Y12.7%
509.32
-2.32 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners86.68%
Inst Owner Change-0.9%
Ins Owners0.46%
Ins Owner Change5.38%
Market Cap19.20B
Analysts83.53
Price Target469.72 (-7.78%)
Short Float %0.86%
Short Ratio0.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)7.34%
PT rev (3m)21.7%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)6.37%
EPS NY rev (1m)0.12%
EPS NY rev (3m)4.45%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.53 | ||
| Fwd PE | 36.01 | ||
| P/S | 5.97 | ||
| P/FCF | 39.46 | ||
| P/OCF | 34.83 | ||
| P/B | 7.5 | ||
| P/tB | 63.47 | ||
| EV/EBITDA | 29.16 |
EPS(TTM)11.7
EY2.3%
EPS(NY)14.14
Fwd EY2.78%
FCF(TTM)12.91
FCFY2.53%
OCF(TTM)14.62
OCFY2.87%
SpS85.27
BVpS67.9
TBVpS8.02
PEG (NY)2.07
PEG (5Y)5.2
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 | 7.19 |
F-Score7
WACC9.87%
ROIC/WACC1.12
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 Y21.08%
EPS Next 2Y14.07%
EPS Next 3Y12.7%
EPS Next 5Y12.48%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%12.97%
Revenue Next Year10.49%
Revenue Next 2Y8.41%
Revenue Next 3Y7.87%
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 5Y14.14%
FCF growth 1Y68.03%
FCF growth 3Y11.72%
FCF growth 5Y6.57%
OCF growth 1Y68.29%
OCF growth 3Y11.97%
OCF growth 5Y5.25%