CURTISS-WRIGHT CORP (CW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CW - US2315611010 - Common Stock
660.18 USD
+10.5 (+1.62%)
660.18 USD
0 (0%)
CW gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. CW has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CW is quite expensive at the moment. It does show a decent growth rate. These ratings could make CW a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- CW had positive earnings in the past year.
- In the past year CW had a positive cash flow from operations.
- Each year in the past 5 years CW has been profitable.
- In the past 5 years CW always reported a positive cash flow from operatings.
1.2 Ratios
- CW's Return On Assets of 9.12% is amongst the best of the industry. CW outperforms 91.78% of its industry peers.
- With an excellent Return On Equity value of 18.39%, CW belongs to the best of the industry, outperforming 86.30% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.90%, CW belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
- CW had an Average Return On Invested Capital over the past 3 years of 10.03%. This is in line with the industry average of 8.56%.
- The last Return On Invested Capital (11.90%) for CW is above the 3 year average (10.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.12% | ||
| ROE | 18.39% | ||
| ROIC | 11.9% |
ROA(3y)7.47%
ROA(5y)6.76%
ROE(3y)15.54%
ROE(5y)14.45%
ROIC(3y)10.03%
ROIC(5y)9.53%
1.3 Margins
- The Profit Margin of CW (13.78%) is better than 89.04% of its industry peers.
- In the last couple of years the Profit Margin of CW has remained more or less at the same level.
- With an excellent Operating Margin value of 18.30%, CW belongs to the best of the industry, outperforming 89.04% of the companies in the same industry.
- CW's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 37.43%, CW is doing good in the industry, outperforming 78.08% of the companies in the same industry.
- In the last couple of years the Gross Margin of CW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.3% | ||
| PM (TTM) | 13.78% | ||
| GM | 37.43% |
OM growth 3Y3.26%
OM growth 5Y1.55%
PM growth 3Y7.28%
PM growth 5Y0.97%
GM growth 3Y-0.09%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CW is still creating some value.
- Compared to 1 year ago, CW has less shares outstanding
- CW has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.99 indicates that CW is not in any danger for bankruptcy at the moment.
- The Altman-Z score of CW (7.99) is better than 72.60% of its industry peers.
- CW has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
- The Debt to FCF ratio of CW (1.87) is better than 93.15% of its industry peers.
- A Debt/Equity ratio of 0.38 indicates that CW is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.38, CW perfoms like the industry average, outperforming 56.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 7.99 |
ROIC/WACC1.19
WACC10.04%
2.3 Liquidity
- A Current Ratio of 1.75 indicates that CW should not have too much problems paying its short term obligations.
- CW's Current ratio of 1.75 is on the low side compared to the rest of the industry. CW is outperformed by 63.01% of its industry peers.
- A Quick Ratio of 1.17 indicates that CW should not have too much problems paying its short term obligations.
- CW has a Quick ratio of 1.17. This is in the lower half of the industry: CW underperforms 64.38% of its industry peers.
- CW 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 | 1.75 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
- CW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.22%, which is quite good.
- The Earnings Per Share has been growing by 8.38% on average over the past years. This is quite good.
- The Revenue has grown by 9.51% in the past year. This is quite good.
- Measured over the past years, CW shows a small growth in Revenue. The Revenue has been growing by 4.64% on average per year.
EPS 1Y (TTM)18.22%
EPS 3Y13.93%
EPS 5Y8.38%
EPS Q2Q%14.48%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%8.79%
3.2 Future
- The Earnings Per Share is expected to grow by 14.57% on average over the next years. This is quite good.
- Based on estimates for the next years, CW will show a quite strong growth in Revenue. The Revenue will grow by 8.86% on average per year.
EPS Next Y24.36%
EPS Next 2Y17.95%
EPS Next 3Y15.69%
EPS Next 5Y14.57%
Revenue Next Year11.69%
Revenue Next 2Y9.48%
Revenue Next 3Y8.87%
Revenue Next 5Y8.86%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 51.90, which means the current valuation is very expensive for CW.
- CW's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of CW to the average of the S&P500 Index (27.25), we can say CW is valued expensively.
- Based on the Price/Forward Earnings ratio of 43.66, the valuation of CW can be described as expensive.
- 61.64% of the companies in the same industry are more expensive than CW, based on the Price/Forward Earnings ratio.
- CW is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.9 | ||
| Fwd PE | 43.66 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CW.
- 71.23% of the companies in the same industry are more expensive than CW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.11 | ||
| EV/EBITDA | 33.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CW does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of CW may justify a higher PE ratio.
- CW's earnings are expected to grow with 15.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)6.2
EPS Next 2Y17.95%
EPS Next 3Y15.69%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.15%, CW is not a good candidate for dividend investing.
- CW's Dividend Yield is a higher than the industry average which is at 0.34.
- With a Dividend Yield of 0.15, CW pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.15% |
5.2 History
- The dividend of CW has a limited annual growth rate of 4.82%.
- CW has been paying a dividend for at least 10 years, so it has a reliable track record.
- CW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.82%
Div Incr Years8
Div Non Decr Years33
5.3 Sustainability
- CW pays out 7.08% of its income as dividend. This is a sustainable payout ratio.
- CW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.08%
EPS Next 2Y17.95%
EPS Next 3Y15.69%
CURTISS-WRIGHT CORP / CW FAQ
What is the ChartMill fundamental rating of CURTISS-WRIGHT CORP (CW) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CW.
What is the valuation status of CURTISS-WRIGHT CORP (CW) stock?
ChartMill assigns a valuation rating of 3 / 10 to CURTISS-WRIGHT CORP (CW). This can be considered as Overvalued.
Can you provide the profitability details for CURTISS-WRIGHT CORP?
CURTISS-WRIGHT CORP (CW) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CURTISS-WRIGHT CORP (CW) stock?
The Price/Earnings (PE) ratio for CURTISS-WRIGHT CORP (CW) is 51.9 and the Price/Book (PB) ratio is 9.62.
How sustainable is the dividend of CURTISS-WRIGHT CORP (CW) stock?
The dividend rating of CURTISS-WRIGHT CORP (CW) is 6 / 10 and the dividend payout ratio is 7.08%.