CURTISS-WRIGHT CORP (CW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CW - US2315611010 - Common Stock
649.08 USD
-8.34 (-1.27%)
643 USD
-6.08 (-0.94%)
We assign a fundamental rating of 7 out of 10 to CW. CW was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes CW very considerable 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.
- In the past 5 years CW has always 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.
- The Return On Invested Capital of CW (11.90%) is better than 89.04% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CW is in line with the industry average of 8.56%.
- The 3 year average ROIC (10.03%) for CW is below the current ROIC(11.90%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 13.78%, CW belongs to the top of the industry, outperforming 89.04% of the companies in the same industry.
- CW's Profit Margin has been stable in the last couple of years.
- CW has a Operating Margin of 18.30%. This is amongst the best in the industry. CW outperforms 89.04% of its industry peers.
- In the last couple of years the Operating Margin of CW has grown nicely.
- CW has a better Gross Margin (37.43%) than 78.08% of its industry peers.
- CW's Gross Margin has been stable in the last couple of years.
| 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
- CW 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 CW has been reduced compared to 1 year ago.
- Compared to 5 years ago, CW has less shares outstanding
- Compared to 1 year ago, CW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.98 indicates that CW is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 7.98, CW is doing good in the industry, outperforming 69.86% of the companies in the same industry.
- 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.
- CW has a better Debt to FCF ratio (1.87) 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 | 7.98 |
ROIC/WACC1.19
WACC10.04%
2.3 Liquidity
- CW has a Current Ratio of 1.75. This is a normal value and indicates that CW is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of CW (1.75) is worse than 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.
- The Quick ratio of CW (1.17) is worse than 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.
- CW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.38% yearly.
- Looking at the last year, CW shows a quite strong growth in Revenue. The Revenue has grown by 9.51% in the last year.
- 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.
- The Revenue is expected to grow by 8.86% on average over the next years. This is quite good.
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
- 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
- CW is valuated quite expensively with a Price/Earnings ratio of 51.03.
- CW's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of CW to the average of the S&P500 Index (27.21), we can say CW is valued expensively.
- With a Price/Forward Earnings ratio of 42.92, CW can be considered very expensive at the moment.
- CW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CW is cheaper than 61.64% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.03 | ||
| Fwd PE | 42.92 |
4.2 Price Multiples
- CW's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, CW is valued a bit cheaper than 71.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.32 | ||
| EV/EBITDA | 33.44 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- CW has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as CW's earnings are expected to grow with 15.69% in the coming years.
PEG (NY)2.09
PEG (5Y)6.09
EPS Next 2Y17.95%
EPS Next 3Y15.69%
5. Dividend
5.1 Amount
- CW has a yearly dividend return of 0.15%, which is pretty low.
- CW's Dividend Yield is a higher than the industry average which is at 0.34.
- Compared to an average S&P500 Dividend Yield of 1.81, CW's dividend is way lower than the S&P500 average.
| 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 51.03 and the Price/Book (PB) ratio is 9.46.
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%.