WOODWARD INC (WWD) Stock Fundamental Analysis
NASDAQ:WWD - Nasdaq - US9807451037 - Common Stock - Currency: USD
WWD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 66 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WWD had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 8.49%, WWD belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
The Return On Equity of WWD (16.32%) is better than 83.33% of its industry peers.
With a decent Return On Invested Capital value of 9.42%, WWD is doing good in the industry, outperforming 78.79% 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 8.39%.
The 3 year average ROIC (7.87%) for WWD is below the current ROIC(9.42%), indicating increased profibility in the last year.
| 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
WWD has a better Profit Margin (11.36%) than 84.85% of its industry peers.
In the last couple of years the Profit Margin of WWD has grown nicely.
WWD has a Operating Margin of 12.72%. This is amongst the best in the industry. WWD outperforms 80.30% of its industry peers.
In the last couple of years the Operating Margin of WWD has grown nicely.
With a Gross Margin value of 25.83%, WWD perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
In the last couple of years the Gross Margin of WWD has grown nicely.
| 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.
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.
Compared to 1 year ago, WWD has a worse debt to assets ratio.
2.2 Solvency
WWD has an Altman-Z score of 6.37. This indicates that WWD is financially healthy and has little risk of bankruptcy at the moment.
WWD's Altman-Z score of 6.37 is fine compared to the rest of the industry. WWD outperforms 71.21% 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.
With an excellent Debt to FCF ratio value of 2.89, WWD belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
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 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 6.37 |
ROIC/WACC0.93
WACC10.08%
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.
With a Current ratio value of 1.95, WWD perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
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 43.94% of 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 | 1.95 | ||
| 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.
WWD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.96%.
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
Based on estimates for the next years, WWD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.58% on average per year.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y4.92%
EPS Next 2Y11.87%
EPS Next 3Y13.86%
EPS Next 5Y8.58%
Revenue Next Year5.43%
Revenue Next 2Y6.98%
Revenue Next 3Y7.21%
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 39.91.
WWD's Price/Earnings ratio is a bit cheaper when compared to the industry. WWD is cheaper than 63.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of WWD to the average of the S&P500 Index (26.92), we can say WWD is valued slightly more expensively.
WWD is valuated quite expensively with a Price/Forward Earnings ratio of 31.74.
Based on the Price/Forward Earnings ratio, WWD is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.46. WWD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.91 | ||
| Fwd PE | 31.74 |
4.2 Price Multiples
WWD's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWD indicates a somewhat cheap valuation: WWD is cheaper than 69.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.79 | ||
| EV/EBITDA | 27.11 |
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.
WWD's earnings are expected to grow with 13.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.11
PEG (5Y)8.68
EPS Next 2Y11.87%
EPS Next 3Y13.86%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 1.27, 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 | 0.47% |
5.2 History
The dividend of WWD is nicely growing with an annual growth rate of 9.14%!
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
16.10% 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 2Y11.87%
EPS Next 3Y13.86%
242.68
+1.01 (+0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change3.71%
Ins Owners0.17%
Ins Owner Change-1.23%
Market Cap14.44B
Analysts71.25
Price Target235.79 (-2.84%)
Short Float %1.55%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)14.48%
PT rev (3m)14.42%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)0.25%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.91 | ||
| Fwd PE | 31.74 | ||
| P/S | 4.3 | ||
| P/FCF | 45.79 | ||
| P/OCF | 35.45 | ||
| P/B | 6.18 | ||
| P/tB | 12.74 | ||
| EV/EBITDA | 27.11 |
EPS(TTM)6.08
EY2.51%
EPS(NY)7.65
Fwd EY3.15%
FCF(TTM)5.3
FCFY2.18%
OCF(TTM)6.85
OCFY2.82%
SpS56.45
BVpS39.29
TBVpS19.05
PEG (NY)8.11
PEG (5Y)8.68
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 | 6.37 |
F-Score7
WACC10.08%
ROIC/WACC0.93
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 Y4.92%
EPS Next 2Y11.87%
EPS Next 3Y13.86%
EPS Next 5Y8.58%
Revenue 1Y (TTM)4.96%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%5.78%
Revenue Next Year5.43%
Revenue Next 2Y6.98%
Revenue Next 3Y7.21%
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 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%