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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WWD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WWD was profitable.
In the past year WWD had a positive cash flow from operations.
WWD had positive earnings in each of the past 5 years.
WWD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WWD's Return On Assets of 8.64% is amongst the best of the industry. WWD outperforms 85.94% of its industry peers.
With an excellent Return On Equity value of 16.75%, WWD belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.93%, WWD belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
WWD had an Average Return On Invested Capital over the past 3 years of 7.87%. This is in line with the industry average of 7.98%.
The last Return On Invested Capital (9.93%) for WWD is above the 3 year average (7.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 16.75% | ||
| ROIC | 9.93% |
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 better Profit Margin (11.18%) than 78.13% of its industry peers.
In the last couple of years the Profit Margin of WWD has grown nicely.
WWD has a better Operating Margin (13.06%) than 81.25% of its industry peers.
WWD's Operating Margin has improved in the last couple of years.
The Gross Margin of WWD (26.03%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WWD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | 11.18% | ||
| GM | 26.03% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WWD is creating some value.
The number of shares outstanding for WWD has been reduced compared to 1 year ago.
WWD has less shares outstanding than it did 5 years ago.
WWD has a worse debt/assets ratio than last year.
2.2 Solvency
WWD has an Altman-Z score of 5.68. 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 5.68, WWD is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
The Debt to FCF ratio of WWD is 2.66, which is a good value as it means it would take WWD, 2.66 years of fcf income to pay off all of its debts.
WWD's Debt to FCF ratio of 2.66 is amongst the best of the industry. WWD outperforms 89.06% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that WWD is not too dependend on debt financing.
WWD's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. WWD outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.07
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.89 indicates that WWD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.89, WWD is in line with its industry, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that WWD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, WWD perfoms like the industry average, outperforming 42.19% 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 | 1.89 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
WWD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.47%, which is quite good.
The Earnings Per Share has been growing slightly by 4.60% on average over the past years.
WWD shows a small growth in Revenue. In the last year, the Revenue has grown by 7.38%.
The Revenue has been growing slightly by 2.77% on average over the past years.
EPS 1Y (TTM)16.47%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%-1.78%
3.2 Future
Based on estimates for the next years, WWD will show a small growth in Earnings Per Share. The EPS will grow by 5.20% on average per year.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y1.94%
EPS Next 2Y9.98%
EPS Next 3Y12.7%
EPS Next 5Y5.2%
Revenue Next Year3.77%
Revenue Next 2Y6%
Revenue Next 3Y6.26%
Revenue Next 5Y2.18%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.61, WWD can be considered very expensive at the moment.
WWD's Price/Earnings ratio is a bit cheaper when compared to the industry. WWD is cheaper than 68.75% of the companies in the same industry.
WWD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.71 indicates a quite expensive valuation of WWD.
WWD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WWD is cheaper than 68.75% of the companies in the same industry.
WWD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.61 | ||
| Fwd PE | 25.71 |
4.2 Price Multiples
WWD's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WWD is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.29 | ||
| EV/EBITDA | 21.25 |
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.
The excellent profitability rating of WWD may justify a higher PE ratio.
WWD's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.32
PEG (5Y)6.87
EPS Next 2Y9.98%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, WWD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.45, WWD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of WWD grows each year by 9.14%, 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)9.14%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
16.18% of the earnings are spent on dividend by WWD. This is a low number and sustainable payout ratio.
The dividend of WWD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.18%
EPS Next 2Y9.98%
EPS Next 3Y12.7%
189.99
-1.58 (-0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners87.58%
Inst Owner Change0.35%
Ins Owners0.32%
Ins Owner Change-3.54%
Market Cap11.28B
Analysts71.25
Price Target199.75 (5.14%)
Short Float %1.35%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.98
Dividend Growth(5Y)9.14%
DP16.18%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.89%
Min EPS beat(2)10.72%
Max EPS beat(2)13.07%
EPS beat(4)4
Avg EPS beat(4)12.88%
Min EPS beat(4)6.49%
Max EPS beat(4)21.25%
EPS beat(8)8
Avg EPS beat(8)19.61%
EPS beat(12)9
Avg EPS beat(12)7.82%
EPS beat(16)10
Avg EPS beat(16)3.83%
Revenue beat(2)1
Avg Revenue beat(2)1.52%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)4.32%
Revenue beat(4)2
Avg Revenue beat(4)0.96%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)4.32%
Revenue beat(8)6
Avg Revenue beat(8)3.86%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)9
Avg Revenue beat(16)0.16%
PT rev (1m)1.62%
PT rev (3m)7.6%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)1.32%
EPS NY rev (3m)5.04%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.61 | ||
| Fwd PE | 25.71 | ||
| P/S | 3.41 | ||
| P/FCF | 33.29 | ||
| P/OCF | 26.42 | ||
| P/B | 5.11 | ||
| P/tB | 11.03 | ||
| EV/EBITDA | 21.25 |
EPS(TTM)6.01
EY3.16%
EPS(NY)7.39
Fwd EY3.89%
FCF(TTM)5.71
FCFY3%
OCF(TTM)7.19
OCFY3.78%
SpS55.77
BVpS37.2
TBVpS17.22
PEG (NY)16.32
PEG (5Y)6.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.64% | ||
| ROE | 16.75% | ||
| ROCE | 12.84% | ||
| ROIC | 9.93% | ||
| ROICexc | 10.77% | ||
| ROICexgc | 16.7% | ||
| OM | 13.06% | ||
| PM (TTM) | 11.18% | ||
| GM | 26.03% | ||
| FCFM | 10.23% |
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-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.66 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 76.41% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 11.86 | ||
| Cash Conversion | 77.95% | ||
| Profit Quality | 91.56% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 5.68 |
F-Score8
WACC9.27%
ROIC/WACC1.07
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)16.47%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%-6.9%
EPS Next Y1.94%
EPS Next 2Y9.98%
EPS Next 3Y12.7%
EPS Next 5Y5.2%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%-1.78%
Revenue Next Year3.77%
Revenue Next 2Y6%
Revenue Next 3Y6.26%
Revenue Next 5Y2.18%
EBIT growth 1Y11.8%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year27.93%
EBIT Next 3Y17.46%
EBIT Next 5Y10.39%
FCF growth 1Y254.31%
FCF growth 3Y-7.06%
FCF growth 5Y3.3%
OCF growth 1Y167.18%
OCF growth 3Y-1.87%
OCF growth 5Y2.37%