WOODWARD INC (WWD) Stock Fundamental Analysis
USA - NASDAQ:WWD - US9807451037 - Common Stock
253.51 USD
+6.31 (+2.55%)
253.51 USD
0 (0%)
WWD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. WWD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WWD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WWD was profitable.
In the past year WWD had a positive cash flow from operations.
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
WWD has a better Return On Assets (8.23%) than 89.86% of its industry peers.
With an excellent Return On Equity value of 15.71%, WWD belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
The Return On Invested Capital of WWD (8.75%) is better than 76.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WWD is in line with the industry average of 8.33%.
The 3 year average ROIC (7.87%) for WWD is below the current ROIC(8.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 15.71% | ||
| ROIC | 8.75% |
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 (11.32%) is better than 85.51% 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 12.44%, WWD is in the better half of the industry, outperforming 79.71% of the companies in the same industry.
In the last couple of years the Operating Margin of WWD has grown nicely.
Looking at the Gross Margin, with a value of 25.88%, WWD is in line with its industry, outperforming 56.52% of the companies in the same industry.
WWD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.44% | ||
| PM (TTM) | 11.32% | ||
| GM | 25.88% |
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.
The number of shares outstanding for WWD has been reduced compared to 1 year ago.
Compared to 5 years ago, WWD has less shares outstanding
Compared to 1 year ago, WWD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.39 indicates that WWD is not in any danger for bankruptcy at the moment.
WWD has a Altman-Z score of 6.39. This is in the better half of the industry: WWD outperforms 69.57% of its industry peers.
WWD has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as WWD would need 3.37 years to pay back of all of its debts.
WWD has a better Debt to FCF ratio (3.37) than 85.51% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that WWD is not too dependend on debt financing.
WWD's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. WWD outperforms 63.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 6.39 |
ROIC/WACC0.91
WACC9.61%
2.3 Liquidity
WWD has a Current Ratio of 2.04. This indicates that WWD is financially healthy and has no problem in meeting its short term obligations.
WWD has a Current ratio (2.04) which is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that WWD should not have too much problems paying its short term obligations.
WWD's Quick ratio of 1.39 is in line compared to the rest of the industry. WWD outperforms 46.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.99% over the past year.
WWD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.60% yearly.
WWD shows a small growth in Revenue. In the last year, the Revenue has grown by 5.53%.
The Revenue has been growing slightly by 2.77% on average over the past years.
EPS 1Y (TTM)2.99%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%7.98%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
3.2 Future
The Earnings Per Share is expected to grow by 12.07% 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 Y9.33%
EPS Next 2Y13.63%
EPS Next 3Y14.14%
EPS Next 5Y12.07%
Revenue Next Year6.67%
Revenue Next 2Y8.21%
Revenue Next 3Y8.02%
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.
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
With a Price/Earnings ratio of 40.82, WWD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WWD is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.34. WWD is valued slightly more expensive when compared to this.
WWD is valuated quite expensively with a Price/Forward Earnings ratio of 32.13.
Based on the Price/Forward Earnings ratio, WWD is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WWD to the average of the S&P500 Index (22.86), we can say WWD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.82 | ||
| Fwd PE | 32.13 |
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 the industry average as 63.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.86 | ||
| EV/EBITDA | 28.37 |
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 14.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.38
PEG (5Y)8.88
EPS Next 2Y13.63%
EPS Next 3Y14.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, WWD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.17, WWD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
WWD pays out 16.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of WWD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.25%
EPS Next 2Y13.63%
EPS Next 3Y14.14%
253.51
+6.31 (+2.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.57%
Inst Owner Change0.01%
Ins Owners0.16%
Ins Owner Change-2.78%
Market Cap15.20B
Analysts74.67
Price Target298.98 (17.94%)
Short Float %1.52%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.98
Dividend Growth(5Y)9.14%
DP16.25%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.53%
Min EPS beat(2)6.42%
Max EPS beat(2)14.65%
EPS beat(4)4
Avg EPS beat(4)11.21%
Min EPS beat(4)6.42%
Max EPS beat(4)14.65%
EPS beat(8)8
Avg EPS beat(8)12.9%
EPS beat(12)11
Avg EPS beat(12)13.72%
EPS beat(16)11
Avg EPS beat(16)4.92%
Revenue beat(2)2
Avg Revenue beat(2)3.3%
Min Revenue beat(2)1.82%
Max Revenue beat(2)4.78%
Revenue beat(4)3
Avg Revenue beat(4)2.41%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)4.78%
Revenue beat(8)6
Avg Revenue beat(8)1.89%
Revenue beat(12)10
Avg Revenue beat(12)3.38%
Revenue beat(16)10
Avg Revenue beat(16)1.2%
PT rev (1m)2.99%
PT rev (3m)26.8%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)9.56%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)4.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.19%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.82 | ||
| Fwd PE | 32.13 | ||
| P/S | 4.44 | ||
| P/FCF | 54.86 | ||
| P/OCF | 40.04 | ||
| P/B | 6.16 | ||
| P/tB | 12.46 | ||
| EV/EBITDA | 28.37 |
EPS(TTM)6.21
EY2.45%
EPS(NY)7.89
Fwd EY3.11%
FCF(TTM)4.62
FCFY1.82%
OCF(TTM)6.33
OCFY2.5%
SpS57.13
BVpS41.16
TBVpS20.34
PEG (NY)4.38
PEG (5Y)8.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 15.71% | ||
| ROCE | 11.52% | ||
| ROIC | 8.75% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 15.21% | ||
| OM | 12.44% | ||
| PM (TTM) | 11.32% | ||
| GM | 25.88% | ||
| FCFM | 8.09% |
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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 11.47 | ||
| Cash Conversion | 70.36% | ||
| Profit Quality | 71.46% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 6.39 |
F-Score5
WACC9.61%
ROIC/WACC0.91
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 Y9.33%
EPS Next 2Y13.63%
EPS Next 3Y14.14%
EPS Next 5Y12.07%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
Revenue Next Year6.67%
Revenue Next 2Y8.21%
Revenue Next 3Y8.02%
Revenue Next 5Y2.18%
EBIT growth 1Y-4.47%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year33.19%
EBIT Next 3Y20.41%
EBIT Next 5Y16.33%
FCF growth 1Y45.58%
FCF growth 3Y-7.06%
FCF growth 5Y3.3%
OCF growth 1Y44.25%
OCF growth 3Y-1.87%
OCF growth 5Y2.37%