WOODWARD INC (WWD) Stock Fundamental Analysis
NASDAQ:WWD - Nasdaq - US9807451037 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to WWD. WWD was compared to 65 industry peers in the Aerospace & Defense industry. WWD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years WWD has been profitable.
Each year in the past 5 years WWD had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.64%, WWD belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
WWD's Return On Equity of 16.75% is amongst the best of the industry. WWD outperforms 86.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.93%, WWD belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WWD is in line with the industry average of 7.89%.
The 3 year average ROIC (7.87%) for WWD is below the current ROIC(9.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 16.75% | ||
| ROIC | 9.93% |
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
The Profit Margin of WWD (11.18%) is better than 81.54% of its industry peers.
WWD's Profit Margin has improved in the last couple of years.
The Operating Margin of WWD (13.06%) is better than 83.08% of its industry peers.
In the last couple of years the Operating Margin of WWD has grown nicely.
WWD has a Gross Margin (26.03%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WWD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | 11.18% | ||
| GM | 26.03% |
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
WWD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for WWD has been reduced compared to 1 year ago.
WWD has less shares outstanding than it did 5 years ago.
WWD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.74 indicates that WWD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.74, WWD is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
The Debt to FCF ratio of WWD is 2.66, which is a good value as it means it would take WWD, 2.66 years of fcf income to pay off all of its debts.
WWD has a better Debt to FCF ratio (2.66) than 90.77% of its industry peers.
WWD has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WWD's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. WWD outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.01
WACC9.82%
2.3 Liquidity
WWD has a Current Ratio of 1.89. 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 (1.89) which is in line with its industry peers.
WWD has a Quick Ratio of 1.19. 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 (1.19) which is in line with its industry peers.
The current and quick ratio evaluation for WWD 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 | 1.19 |
3. Growth
3.1 Past
WWD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.37%.
Measured over the past 5 years, WWD shows a small growth in Earnings Per Share. The EPS has been growing by 4.60% on average per year.
The Revenue has been growing slightly by 4.96% in the past year.
WWD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.77% yearly.
EPS 1Y (TTM)5.37%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%4.32%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%5.78%
3.2 Future
WWD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.76% yearly.
Based on estimates for the next years, WWD will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y2.12%
EPS Next 2Y9.95%
EPS Next 3Y12.7%
EPS Next 5Y6.76%
Revenue Next Year3.74%
Revenue Next 2Y6.15%
Revenue Next 3Y6.63%
Revenue Next 5Y2.18%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.01, WWD can be considered very expensive at the moment.
70.77% of the companies in the same industry are more expensive than WWD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WWD to the average of the S&P500 Index (28.18), we can say WWD is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.35, the valuation of WWD can be described as expensive.
Based on the Price/Forward Earnings ratio, WWD is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
WWD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.01 | ||
| Fwd PE | 26.35 |
4.2 Price Multiples
WWD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WWD is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.1 | ||
| EV/EBITDA | 21.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WWD does not grow enough to justify the current Price/Earnings ratio.
WWD has an outstanding profitability rating, which may justify a higher PE ratio.
WWD's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.08
PEG (5Y)6.96
EPS Next 2Y9.95%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.58%, which is pretty low.
WWD's Dividend Yield is a higher than the industry average which is at 1.33.
With a Dividend Yield of 0.58, WWD pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
On average, the dividend of WWD grows each year by 9.14%, which is quite nice.
WWD has paid a dividend for at least 10 years, which is 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
16.18% 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.
DP16.18%
EPS Next 2Y9.95%
EPS Next 3Y12.7%
NASDAQ:WWD (5/5/2025, 10:50:03 AM)
194.61
+0.69 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners88.41%
Inst Owner Change0.55%
Ins Owners0.21%
Ins Owner Change-5.09%
Market Cap11.55B
Analysts71.25
Price Target194.96 (0.18%)
Short Float %2.33%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.98
Dividend Growth(5Y)9.14%
DP16.18%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.89%
Min EPS beat(2)10.72%
Max EPS beat(2)13.07%
EPS beat(4)4
Avg EPS beat(4)12.88%
Min EPS beat(4)6.49%
Max EPS beat(4)21.25%
EPS beat(8)8
Avg EPS beat(8)19.61%
EPS beat(12)9
Avg EPS beat(12)7.82%
EPS beat(16)10
Avg EPS beat(16)3.83%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)4.32%
Revenue beat(4)2
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)4.32%
Revenue beat(8)6
Avg Revenue beat(8)3.86%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)9
Avg Revenue beat(16)0.16%
PT rev (1m)-5.4%
PT rev (3m)-2.4%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.01 | ||
| Fwd PE | 26.35 | ||
| P/S | 3.49 | ||
| P/FCF | 34.1 | ||
| P/OCF | 27.07 | ||
| P/B | 5.23 | ||
| P/tB | 11.3 | ||
| EV/EBITDA | 21.68 |
EPS(TTM)6.08
EY3.12%
EPS(NY)7.39
Fwd EY3.8%
FCF(TTM)5.71
FCFY2.93%
OCF(TTM)7.19
OCFY3.69%
SpS55.77
BVpS37.2
TBVpS17.22
PEG (NY)15.08
PEG (5Y)6.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 16.75% | ||
| ROCE | 12.84% | ||
| ROIC | 9.93% | ||
| ROICexc | 10.77% | ||
| ROICexgc | 16.7% | ||
| OM | 13.06% | ||
| PM (TTM) | 11.18% | ||
| GM | 26.03% | ||
| FCFM | 10.23% |
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-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 76.41% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 11.86 | ||
| Cash Conversion | 77.95% | ||
| Profit Quality | 91.56% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 5.74 |
F-Score8
WACC9.82%
ROIC/WACC1.01
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)5.37%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%4.32%
EPS Next Y2.12%
EPS Next 2Y9.95%
EPS Next 3Y12.7%
EPS Next 5Y6.76%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%5.78%
Revenue Next Year3.74%
Revenue Next 2Y6.15%
Revenue Next 3Y6.63%
Revenue Next 5Y2.18%
EBIT growth 1Y11.8%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year28.23%
EBIT Next 3Y17.72%
EBIT Next 5Y10.82%
FCF growth 1Y254.31%
FCF growth 3Y-7.06%
FCF growth 5Y3.3%
OCF growth 1Y167.18%
OCF growth 3Y-1.87%
OCF growth 5Y2.37%