WOODWARD INC (WWD)
US9807451037 - Common Stock
WWD gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make WWD suitable for quality investing!
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.
WWD had positive earnings in each of the past 5 years.
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 8.13%, WWD belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Return On Equity of WWD (15.24%) is better than 81.25% of its industry peers.
WWD has a better Return On Invested Capital (9.60%) than 82.81% of its industry peers.
WWD had an Average Return On Invested Capital over the past 3 years of 6.49%. This is below the industry average of 8.76%.
The 3 year average ROIC (6.49%) for WWD is below the current ROIC(9.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 15.24% | ||
| ROIC | 9.6% |
ROA(3y)5.14%
ROA(5y)5.63%
ROE(3y)9.89%
ROE(5y)11.35%
ROIC(3y)6.49%
ROIC(5y)7.03%
1.3 Margins
WWD has a better Profit Margin (11.09%) than 81.25% of its industry peers.
In the last couple of years the Profit Margin of WWD has remained more or less at the same level.
WWD's Operating Margin of 13.46% is amongst the best of the industry. WWD outperforms 87.50% of its industry peers.
WWD's Operating Margin has declined in the last couple of years.
WWD has a Gross Margin (26.02%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WWD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.46% | ||
| PM (TTM) | 11.09% | ||
| GM | 26.02% |
OM growth 3Y-3.48%
OM growth 5Y-1.67%
PM growth 3Y-6.11%
PM growth 5Y0.55%
GM growth 3Y-2.39%
GM growth 5Y-1.65%
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 remains at a similar level compared to 1 year ago.
WWD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WWD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.48 indicates that WWD is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.48, WWD belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
WWD has a debt to FCF ratio of 2.44. This is a good value and a sign of high solvency as WWD would need 2.44 years to pay back of all of its debts.
WWD's Debt to FCF ratio of 2.44 is amongst the best of the industry. WWD outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that WWD is not too dependend on debt financing.
WWD has a Debt to Equity ratio of 0.34. This is in the better half of the industry: WWD outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.09
WACC8.85%
2.3 Liquidity
WWD has a Current Ratio of 2.62. This indicates that WWD is financially healthy and has no problem in meeting its short term obligations.
WWD has a better Current ratio (2.62) than 67.19% of its industry peers.
WWD has a Quick Ratio of 1.78. This is a normal value and indicates that WWD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WWD (1.78) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 93.62% over the past year.
Measured over the past 5 years, WWD shows a small growth in Earnings Per Share. The EPS has been growing by 1.70% on average per year.
WWD shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.49%.
WWD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.62% yearly.
EPS 1Y (TTM)93.62%
EPS 3Y2.15%
EPS 5Y1.7%
EPS growth Q2Q60.4%
Revenue 1Y (TTM)23.49%
Revenue growth 3Y5.31%
Revenue growth 5Y4.62%
Revenue growth Q2Q16.31%
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 14.87% on average per year.
The Revenue is expected to grow by 5.61% on average over the next years.
EPS Next Y29.09%
EPS Next 2Y20.02%
EPS Next 3Y20.11%
EPS Next 5Y14.87%
Revenue Next Year11.83%
Revenue Next 2Y8.57%
Revenue Next 3Y7.76%
Revenue Next 5Y5.61%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.87 indicates a quite expensive valuation of WWD.
Based on the Price/Earnings ratio, WWD is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.05, WWD is valued at the same level.
With a Price/Forward Earnings ratio of 29.45, WWD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WWD is valued a bit cheaper than 64.06% of the companies in the same industry.
WWD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 29.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WWD is valued a bit cheaper than 60.94% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WWD is valued a bit cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.19 | ||
| EV/EBITDA | 19.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WWD may justify a higher PE ratio.
WWD's earnings are expected to grow with 20.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)18.13
EPS Next 2Y20.02%
EPS Next 3Y20.11%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.57%, which is pretty low.
Compared to an average industry Dividend Yield of 1.29, WWD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
On average, the dividend of WWD grows each year by 9.04%, 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)9.04%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WWD pays out 15.45% of its income as dividend. This is a sustainable payout ratio.
WWD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.45%
EPS Next 2Y20.02%
EPS Next 3Y20.11%
WOODWARD INC
NASDAQ:WWD (5/8/2024, 7:27:40 PM)
After market: 178.14 0 (0%)178.14
+1.69 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 29.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.06
PEG (5Y)18.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 15.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.46% | ||
| PM (TTM) | 11.09% | ||
| GM | 26.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)93.62%
EPS 3Y2.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.49%
Revenue growth 3Y5.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y