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 65 industry peers in the Aerospace & Defense industry. WWD scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WWD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WWD had positive earnings in the past year.
In the past year WWD had a positive cash flow from operations.
In the past 5 years WWD has always been profitable.
In the past 5 years WWD always reported a positive cash flow from operatings.
1.2 Ratios
WWD's Return On Assets of 8.49% is amongst the best of the industry. WWD outperforms 87.69% of its industry peers.
With an excellent Return On Equity value of 16.32%, WWD belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
The Return On Invested Capital of WWD (9.42%) is better than 78.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWD is in line with the industry average of 8.44%.
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 Profit Margin of 11.36%. This is amongst the best in the industry. WWD outperforms 84.62% of its industry peers.
WWD's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.72%, WWD is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WWD has grown nicely.
WWD's Gross Margin of 25.83% is in line compared to the rest of the industry. WWD outperforms 55.38% of its industry peers.
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
WWD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WWD has less shares outstanding
Compared to 5 years ago, WWD has less shares outstanding
WWD has a worse debt/assets ratio than last year.
2.2 Solvency
WWD has an Altman-Z score of 6.42. This indicates that WWD is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.42, WWD is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
The Debt to FCF ratio of WWD is 2.89, which is a good value as it means it would take WWD, 2.89 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.89, WWD belongs to the best of the industry, outperforming 89.23% 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.
The Debt to Equity ratio of WWD (0.32) is better than 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 6.42 |
ROIC/WACC0.91
WACC10.37%
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.
The Current ratio of WWD (1.95) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.30, WWD is in line with its industry, outperforming 44.62% of the companies in the same industry.
WWD 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 | 1.95 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.37% over the past year.
WWD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.60% yearly.
The Revenue has been growing slightly by 4.96% in the past year.
Measured over the past years, WWD shows a small growth in Revenue. The Revenue has been growing by 2.77% on average per year.
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
WWD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.58% yearly.
Based on estimates for the next years, WWD will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y4.92%
EPS Next 2Y11.81%
EPS Next 3Y13.74%
EPS Next 5Y8.58%
Revenue Next Year5.43%
Revenue Next 2Y6.95%
Revenue Next 3Y7.2%
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
With a Price/Earnings ratio of 40.32, WWD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WWD indicates a somewhat cheap valuation: WWD is cheaper than 63.08% of the companies listed in the same industry.
WWD is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.10, WWD can be considered very expensive at the moment.
WWD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WWD is cheaper than 63.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, WWD is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 32.1 |
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 66.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.25 | ||
| EV/EBITDA | 27.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WWD does not grow enough to justify the current Price/Earnings ratio.
WWD has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WWD's earnings are expected to grow with 13.74% in the coming years.
PEG (NY)8.2
PEG (5Y)8.77
EPS Next 2Y11.81%
EPS Next 3Y13.74%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.45%, which is pretty low.
WWD's Dividend Yield is a higher than the industry average which is at 1.23.
Compared to an average S&P500 Dividend Yield of 2.35, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
On average, the dividend of WWD grows each year by 9.14%, which is quite nice.
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.
WWD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.1%
EPS Next 2Y11.81%
EPS Next 3Y13.74%
245.14
-1.16 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change-1.23%
Market Cap14.59B
Analysts74.67
Price Target235.79 (-3.81%)
Short Float %1.3%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)10.53%
PT rev (3m)14.42%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0.25%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 32.1 | ||
| P/S | 4.34 | ||
| P/FCF | 46.25 | ||
| P/OCF | 35.81 | ||
| P/B | 6.24 | ||
| P/tB | 12.87 | ||
| EV/EBITDA | 27.5 |
EPS(TTM)6.08
EY2.48%
EPS(NY)7.64
Fwd EY3.12%
FCF(TTM)5.3
FCFY2.16%
OCF(TTM)6.85
OCFY2.79%
SpS56.45
BVpS39.29
TBVpS19.05
PEG (NY)8.2
PEG (5Y)8.77
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 | 6.42 |
F-Score7
WACC10.37%
ROIC/WACC0.91
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 2Y11.81%
EPS Next 3Y13.74%
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 2Y6.95%
Revenue Next 3Y7.2%
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%