WOODWARD INC (WWD) Stock Fundamental Analysis
NASDAQ:WWD - Nasdaq - US9807451037 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to WWD. WWD was compared to 67 industry peers in the Aerospace & Defense industry. WWD gets an excellent profitability rating and is at the same time showing great financial health properties. WWD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WWD was profitable.
WWD had a positive operating cash flow in the past year.
WWD had positive earnings in each of the past 5 years.
In the past 5 years WWD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.49%, WWD belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
With an excellent Return On Equity value of 16.32%, WWD belongs to the best of the industry, outperforming 83.58% of the companies in the same industry.
WWD has a better Return On Invested Capital (9.34%) than 79.10% of its industry peers.
WWD had an Average Return On Invested Capital over the past 3 years of 7.87%. This is in line with the industry average of 8.47%.
The 3 year average ROIC (7.87%) for WWD is below the current ROIC(9.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.32% | ||
| ROIC | 9.34% |
ROA(3y)6.28%
ROA(5y)6.02%
ROE(3y)12.46%
ROE(5y)11.77%
ROIC(3y)7.87%
ROIC(5y)7.33%
1.3 Margins
WWD has a Profit Margin of 11.36%. This is amongst the best in the industry. WWD outperforms 85.07% of its industry peers.
WWD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.62%, WWD belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
WWD's Operating Margin has improved in the last couple of years.
WWD has a Gross Margin (25.83%) which is in line with its industry peers.
WWD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.62% | ||
| PM (TTM) | 11.36% | ||
| GM | 25.83% |
OM growth 3Y5.7%
OM growth 5Y4.68%
PM growth 3Y6.5%
PM growth 5Y4.62%
GM growth 3Y2.42%
GM growth 5Y1.57%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WWD is destroying value.
WWD has less shares outstanding than it did 1 year ago.
WWD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WWD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.62 indicates that WWD is not in any danger for bankruptcy at the moment.
The Altman-Z score of WWD (6.62) is better than 70.15% of its industry peers.
The Debt to FCF ratio of WWD is 2.89, which is a good value as it means it would take WWD, 2.89 years of fcf income to pay off all of its debts.
WWD's Debt to FCF ratio of 2.89 is amongst the best of the industry. WWD outperforms 89.55% of its industry peers.
WWD has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, WWD is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 6.62 |
ROIC/WACC0.96
WACC9.74%
2.3 Liquidity
WWD has a Current Ratio of 1.95. This is a normal value and indicates that WWD is financially healthy and should not expect problems in meeting its short term obligations.
WWD has a Current ratio (1.95) which is in line with its industry peers.
WWD has a Quick Ratio of 1.30. This is a normal value and indicates that WWD is financially healthy and should not expect problems in meeting its short term obligations.
WWD has a Quick ratio of 1.30. This is comparable to the rest of the industry: WWD outperforms 44.78% of its industry peers.
WWD 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 | 1.95 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
WWD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.99%.
WWD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.60% yearly.
The Revenue has grown by 14.06% in the past year. This is quite good.
Measured over the past years, WWD shows a small growth in Revenue. The Revenue has been growing by 2.77% on average per year.
EPS 1Y (TTM)2.99%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%7.98%
Revenue 1Y (TTM)14.06%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
3.2 Future
The Earnings Per Share is expected to grow by 8.58% on average over the next years. This is quite good.
WWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.18% yearly.
EPS Next Y4.92%
EPS Next 2Y11.81%
EPS Next 3Y13.74%
EPS Next 5Y8.58%
Revenue Next Year5.73%
Revenue Next 2Y7.15%
Revenue Next 3Y7.2%
Revenue Next 5Y2.18%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.75, which means the current valuation is very expensive for WWD.
WWD's Price/Earnings ratio is a bit cheaper when compared to the industry. WWD is cheaper than 62.69% of the companies in the same industry.
WWD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.82.
A Price/Forward Earnings ratio of 33.95 indicates a quite expensive valuation of WWD.
WWD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WWD to the average of the S&P500 Index (36.21), we can say WWD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.75 | ||
| Fwd PE | 33.95 |
4.2 Price Multiples
WWD's Enterprise Value to EBITDA is on the same level as the industry average.
WWD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WWD is cheaper than 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.92 | ||
| EV/EBITDA | 29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WWD may justify a higher PE ratio.
A more expensive valuation may be justified as WWD's earnings are expected to grow with 13.74% in the coming years.
PEG (NY)8.49
PEG (5Y)9.08
EPS Next 2Y11.81%
EPS Next 3Y13.74%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 1.18, WWD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of WWD grows each year by 9.14%, which is quite nice.
WWD has been paying a dividend for at least 10 years, so it has a reliable track record.
WWD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.14%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
16.10% of the earnings are spent on dividend by WWD. This is a low number and sustainable payout ratio.
WWD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.1%
EPS Next 2Y11.81%
EPS Next 3Y13.74%
259.29
+2.21 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change-0.87%
Ins Owners0.17%
Ins Owner Change-1.34%
Market Cap15.43B
Analysts74.67
Price Target271.68 (4.78%)
Short Float %1.07%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.98
Dividend Growth(5Y)9.14%
DP16.1%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.86%
Min EPS beat(2)13.07%
Max EPS beat(2)14.65%
EPS beat(4)4
Avg EPS beat(4)11.23%
Min EPS beat(4)6.49%
Max EPS beat(4)14.65%
EPS beat(8)8
Avg EPS beat(8)16.63%
EPS beat(12)10
Avg EPS beat(12)10.66%
EPS beat(16)10
Avg EPS beat(16)2.97%
Revenue beat(2)1
Avg Revenue beat(2)1.75%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)4.78%
Revenue beat(4)2
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)4.78%
Revenue beat(8)6
Avg Revenue beat(8)3.27%
Revenue beat(12)9
Avg Revenue beat(12)3.02%
Revenue beat(16)9
Avg Revenue beat(16)0.42%
PT rev (1m)15.22%
PT rev (3m)39.35%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)1.1%
EPS NY rev (1m)0%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.75 | ||
| Fwd PE | 33.95 | ||
| P/S | 4.59 | ||
| P/FCF | 48.92 | ||
| P/OCF | 37.88 | ||
| P/B | 6.6 | ||
| P/tB | 13.61 | ||
| EV/EBITDA | 29 |
EPS(TTM)6.21
EY2.4%
EPS(NY)7.64
Fwd EY2.95%
FCF(TTM)5.3
FCFY2.04%
OCF(TTM)6.85
OCFY2.64%
SpS56.45
BVpS39.29
TBVpS19.05
PEG (NY)8.49
PEG (5Y)9.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.32% | ||
| ROCE | 12.06% | ||
| ROIC | 9.34% | ||
| ROICexc | 10.34% | ||
| ROICexgc | 15.98% | ||
| OM | 12.62% | ||
| PM (TTM) | 11.36% | ||
| GM | 25.83% | ||
| FCFM | 9.39% |
ROA(3y)6.28%
ROA(5y)6.02%
ROE(3y)12.46%
ROE(5y)11.77%
ROIC(3y)7.87%
ROIC(5y)7.33%
ROICexc(3y)8.33%
ROICexc(5y)7.83%
ROICexgc(3y)13.36%
ROICexgc(5y)12.89%
ROCE(3y)9.77%
ROCE(5y)9%
ROICexcg growth 3Y16.18%
ROICexcg growth 5Y3.29%
ROICexc growth 3Y19.24%
ROICexc growth 5Y6.07%
OM growth 3Y5.7%
OM growth 5Y4.68%
PM growth 3Y6.5%
PM growth 5Y4.62%
GM growth 3Y2.42%
GM growth 5Y1.57%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 80.99% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 11.45 | ||
| Cash Conversion | 75.8% | ||
| Profit Quality | 82.68% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 6.62 |
F-Score7
WACC9.74%
ROIC/WACC0.96
Cap/Depr(3y)63.55%
Cap/Depr(5y)51.13%
Cap/Sales(3y)2.58%
Cap/Sales(5y)2.26%
Profit Quality(3y)91.23%
Profit Quality(5y)120.84%
High Growth Momentum
Growth
EPS 1Y (TTM)2.99%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%7.98%
EPS Next Y4.92%
EPS Next 2Y11.81%
EPS Next 3Y13.74%
EPS Next 5Y8.58%
Revenue 1Y (TTM)14.06%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
Revenue Next Year5.73%
Revenue Next 2Y7.15%
Revenue Next 3Y7.2%
Revenue Next 5Y2.18%
EBIT growth 1Y-1.99%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year29.36%
EBIT Next 3Y18.89%
EBIT Next 5Y12.29%
FCF growth 1Y184.31%
FCF growth 3Y-7.06%
FCF growth 5Y3.3%
OCF growth 1Y121.75%
OCF growth 3Y-1.87%
OCF growth 5Y2.37%