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 64 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making WWD a very profitable company, without any liquidiy or solvency issues. WWD is not valued too expensively and it also shows a decent 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.
In the past 5 years WWD has always been profitable.
Each year in the past 5 years WWD had a positive operating cash flow.
1.2 Ratios
WWD's Return On Assets of 8.49% is amongst the best of the industry. WWD outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 16.32%, WWD belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Return On Invested Capital of WWD (9.42%) is better than 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWD is in line with the industry average of 8.03%.
The last Return On Invested Capital (9.42%) for WWD is above the 3 year average (7.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.32% | ||
| ROIC | 9.42% |
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
Looking at the Profit Margin, with a value of 11.36%, WWD belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Profit Margin of WWD has grown nicely.
WWD has a better Operating Margin (12.72%) than 79.69% of its industry peers.
In the last couple of years the Operating Margin of WWD has grown nicely.
WWD's Gross Margin of 25.83% is in line compared to the rest of the industry. WWD outperforms 53.13% of its industry peers.
WWD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.72% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WWD is destroying value.
Compared to 1 year ago, WWD has less shares outstanding
Compared to 5 years ago, WWD has less shares outstanding
The debt/assets ratio for WWD is higher compared to a year ago.
2.2 Solvency
WWD has an Altman-Z score of 5.97. This indicates that WWD is financially healthy and has little risk of bankruptcy at the moment.
WWD's Altman-Z score of 5.97 is fine compared to the rest of the industry. WWD outperforms 71.88% of its industry peers.
WWD has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as WWD would need 2.89 years to pay back of all of its debts.
WWD has a better Debt to FCF ratio (2.89) than 89.06% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WWD is not too dependend on debt financing.
WWD has a Debt to Equity ratio of 0.32. This is in the better half of the industry: WWD outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.94
WACC10.06%
2.3 Liquidity
A Current Ratio of 1.95 indicates that WWD should not have too much problems paying its short term obligations.
WWD has a Current ratio of 1.95. This is comparable to the rest of the industry: WWD outperforms 42.19% of 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.
With a Quick ratio value of 1.30, WWD perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
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 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.
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)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
The Earnings Per Share is expected to grow by 6.76% on average over the next years.
WWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.18% yearly.
EPS Next Y4.66%
EPS Next 2Y10.63%
EPS Next 3Y13.66%
EPS Next 5Y6.76%
Revenue Next Year5.31%
Revenue Next 2Y6.63%
Revenue Next 3Y7.22%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WWD is valuated quite expensively with a Price/Earnings ratio of 35.60.
64.06% of the companies in the same industry are more expensive than WWD, based on the Price/Earnings ratio.
WWD is valuated rather expensively when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.94, WWD can be considered very expensive at the moment.
62.50% of the companies in the same industry are more expensive than WWD, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. WWD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 28.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WWD.
Based on the Price/Free Cash Flow ratio, WWD is valued a bit cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.84 | ||
| EV/EBITDA | 24.51 |
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.
The excellent profitability rating of WWD may justify a higher PE ratio.
WWD's earnings are expected to grow with 13.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.64
PEG (5Y)7.74
EPS Next 2Y10.63%
EPS Next 3Y13.66%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 1.36, WWD pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.54, WWD pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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.
The dividend of WWD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.1%
EPS Next 2Y10.63%
EPS Next 3Y13.66%
NASDAQ:WWD (5/30/2025, 1:41:43 PM)
216.44
-1.52 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners88.41%
Inst Owner Change3.72%
Ins Owners0.21%
Ins Owner Change-4.7%
Market Cap12.88B
Analysts71.25
Price Target205.97 (-4.84%)
Short Float %2.25%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)-0.05%
PT rev (3m)-0.05%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)2.48%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0.99%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 28.94 | ||
| P/S | 3.83 | ||
| P/FCF | 40.84 | ||
| P/OCF | 31.62 | ||
| P/B | 5.51 | ||
| P/tB | 11.36 | ||
| EV/EBITDA | 24.51 |
EPS(TTM)6.08
EY2.81%
EPS(NY)7.48
Fwd EY3.45%
FCF(TTM)5.3
FCFY2.45%
OCF(TTM)6.85
OCFY3.16%
SpS56.45
BVpS39.29
TBVpS19.05
PEG (NY)7.64
PEG (5Y)7.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.49% | ||
| ROE | 16.32% | ||
| ROCE | 12.16% | ||
| ROIC | 9.42% | ||
| ROICexc | 10.43% | ||
| ROICexgc | 16.11% | ||
| OM | 12.72% | ||
| 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 | 1.39 | ||
| Cap/Depr | 80.99% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 11.55 | ||
| Cash Conversion | 75.3% | ||
| Profit Quality | 82.68% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 5.97 |
F-Score7
WACC10.06%
ROIC/WACC0.94
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 Y4.66%
EPS Next 2Y10.63%
EPS Next 3Y13.66%
EPS Next 5Y6.76%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%5.78%
Revenue Next Year5.31%
Revenue Next 2Y6.63%
Revenue Next 3Y7.22%
Revenue Next 5Y2.18%
EBIT growth 1Y-1.18%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year29.36%
EBIT Next 3Y18.89%
EBIT Next 5Y10.82%
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%