CURTISS-WRIGHT CORP (CW) Stock Fundamental Analysis
NYSE:CW - New York Stock Exchange, Inc. - US2315611010 - Common Stock - Currency: USD
Taking everything into account, CW scores 7 out of 10 in our fundamental rating. CW was compared to 66 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 not valued too expensively and it also shows 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.
In the past 5 years CW has always been profitable.
CW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CW (8.12%) is better than 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 16.53%, CW belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.79%, CW belongs to the best of the industry, outperforming 90.63% 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 above the industry average of 7.98%.
The 3 year average ROIC (10.03%) for CW is below the current ROIC(10.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.53% | ||
| ROIC | 10.79% |
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 12.98%, CW belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
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 17.44%, CW belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
CW's Operating Margin has improved in the last couple of years.
CW has a Gross Margin of 37.00%. This is in the better half of the industry: CW outperforms 79.69% of its industry peers.
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 | 17.44% | ||
| PM (TTM) | 12.98% | ||
| GM | 37% |
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.
Compared to 1 year ago, CW has less shares outstanding
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
CW has an Altman-Z score of 5.22. This indicates that CW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.22, CW is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
The Debt to FCF ratio of CW is 2.17, which is a good value as it means it would take CW, 2.17 years of fcf income to pay off all of its debts.
CW has a Debt to FCF ratio of 2.17. This is amongst the best in the industry. CW outperforms 90.63% of its industry peers.
CW has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
CW has a better Debt to Equity ratio (0.39) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 5.22 |
ROIC/WACC1.18
WACC9.12%
2.3 Liquidity
A Current Ratio of 1.69 indicates that CW should not have too much problems paying its short term obligations.
The Current ratio of CW (1.69) is comparable to the rest of the industry.
CW has a Quick Ratio of 1.19. This is a normal value and indicates that CW is financially healthy and should not expect problems in meeting its short term obligations.
CW has a Quick ratio (1.19) which is comparable to the rest of the industry.
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 | 1.69 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.88% over the past year.
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 9.69% in the past year. This is quite good.
The Revenue has been growing slightly by 4.64% on average over the past years.
EPS 1Y (TTM)15.88%
EPS 3Y13.93%
EPS 5Y8.38%
EPS Q2Q%3.48%
Revenue 1Y (TTM)9.69%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%4.9%
3.2 Future
CW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.48% yearly.
Based on estimates for the next years, CW will show a small growth in Revenue. The Revenue will grow by 7.72% on average per year.
EPS Next Y16.82%
EPS Next 2Y12.52%
EPS Next 3Y11.45%
EPS Next 5Y12.48%
Revenue Next Year8.66%
Revenue Next 2Y7.41%
Revenue Next 3Y6.97%
Revenue Next 5Y7.72%
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
Based on the Price/Earnings ratio of 29.09, the valuation of CW can be described as expensive.
Based on the Price/Earnings ratio, CW is valued a bit cheaper than the industry average as 73.44% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CW to the average of the S&P500 Index (29.63), we can say CW is valued inline with the index average.
The Price/Forward Earnings ratio is 24.90, which indicates a rather expensive current valuation of CW.
CW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CW is cheaper than 67.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CW to the average of the S&P500 Index (22.68), we can say CW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 24.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CW is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CW is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.83 | ||
| EV/EBITDA | 20.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CW may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)3.47
EPS Next 2Y12.52%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
CW has a yearly dividend return of 0.25%, which is pretty low.
Compared to an average industry Dividend Yield of 1.44, CW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, CW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
The dividend of CW has a limited annual growth rate of 4.82%.
CW has paid a dividend for at least 10 years, which is 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
7.82% of the earnings are spent on dividend by CW. This is a low number and sustainable payout ratio.
CW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.82%
EPS Next 2Y12.52%
EPS Next 3Y11.45%
316.2
-14.19 (-4.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners85.06%
Inst Owner Change1.72%
Ins Owners0.41%
Ins Owner Change3.31%
Market Cap12.00B
Analysts83.53
Price Target404.37 (27.88%)
Short Float %0.93%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.83
Dividend Growth(5Y)4.82%
DP7.82%
Div Incr Years8
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.86%
Min EPS beat(2)2.8%
Max EPS beat(2)6.93%
EPS beat(4)4
Avg EPS beat(4)8.06%
Min EPS beat(4)2.8%
Max EPS beat(4)11.6%
EPS beat(8)8
Avg EPS beat(8)6.76%
EPS beat(12)10
Avg EPS beat(12)5.19%
EPS beat(16)12
Avg EPS beat(16)4.51%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)1.36%
Max Revenue beat(2)2.45%
Revenue beat(4)4
Avg Revenue beat(4)2.91%
Min Revenue beat(4)1.36%
Max Revenue beat(4)4.29%
Revenue beat(8)8
Avg Revenue beat(8)3.15%
Revenue beat(12)8
Avg Revenue beat(12)0.76%
Revenue beat(16)10
Avg Revenue beat(16)0.35%
PT rev (1m)8.07%
PT rev (3m)16.75%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)0.84%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 24.9 | ||
| P/S | 3.84 | ||
| P/FCF | 24.83 | ||
| P/OCF | 22.05 | ||
| P/B | 4.9 | ||
| P/tB | 67.7 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)10.87
EY3.44%
EPS(NY)12.7
Fwd EY4.02%
FCF(TTM)12.74
FCFY4.03%
OCF(TTM)14.34
OCFY4.54%
SpS82.24
BVpS64.55
TBVpS4.67
PEG (NY)1.73
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.12% | ||
| ROE | 16.53% | ||
| ROCE | 14% | ||
| ROIC | 10.79% | ||
| ROICexc | 11.97% | ||
| ROICexgc | 34.05% | ||
| OM | 17.44% | ||
| PM (TTM) | 12.98% | ||
| GM | 37% | ||
| FCFM | 15.48% |
ROA(3y)7.47%
ROA(5y)6.76%
ROE(3y)15.54%
ROE(5y)14.45%
ROIC(3y)10.03%
ROIC(5y)9.53%
ROICexc(3y)11.07%
ROICexc(5y)10.36%
ROICexgc(3y)31.52%
ROICexgc(5y)29.76%
ROCE(3y)13.02%
ROCE(5y)12.36%
ROICexcg growth 3Y10.1%
ROICexcg growth 5Y1.55%
ROICexc growth 3Y7.83%
ROICexc growth 5Y0.32%
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%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 56.63% | ||
| Cap/Sales | 1.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.46% | ||
| Profit Quality | 119.34% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 5.22 |
F-Score7
WACC9.12%
ROIC/WACC1.18
Cap/Depr(3y)43.06%
Cap/Depr(5y)41.22%
Cap/Sales(3y)1.67%
Cap/Sales(5y)1.73%
Profit Quality(3y)106.77%
Profit Quality(5y)111.65%
High Growth Momentum
Growth
EPS 1Y (TTM)15.88%
EPS 3Y13.93%
EPS 5Y8.38%
EPS Q2Q%3.48%
EPS Next Y16.82%
EPS Next 2Y12.52%
EPS Next 3Y11.45%
EPS Next 5Y12.48%
Revenue 1Y (TTM)9.69%
Revenue growth 3Y7.67%
Revenue growth 5Y4.64%
Sales Q2Q%4.9%
Revenue Next Year8.66%
Revenue Next 2Y7.41%
Revenue Next 3Y6.97%
Revenue Next 5Y7.72%
EBIT growth 1Y12.36%
EBIT growth 3Y11.18%
EBIT growth 5Y6.26%
EBIT Next Year34.26%
EBIT Next 3Y15.14%
EBIT Next 5Y11.52%
FCF growth 1Y19.8%
FCF growth 3Y11.72%
FCF growth 5Y6.57%
OCF growth 1Y21.47%
OCF growth 3Y11.97%
OCF growth 5Y5.25%