WOODWARD INC (WWD) Stock Fundamental Analysis
USA - NASDAQ:WWD - US9807451037 - Common Stock
271.49 USD
+5.18 (+1.95%)
271.49 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WWD. WWD was compared to 72 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 is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years WWD always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.23%, WWD belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
WWD's Return On Equity of 15.71% is amongst the best of the industry. WWD outperforms 83.33% of its industry peers.
WWD's Return On Invested Capital of 8.75% is fine compared to the rest of the industry. WWD outperforms 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WWD is in line with the industry average of 8.46%.
The 3 year average ROIC (7.87%) for WWD is below the current ROIC(8.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 15.71% | ||
| ROIC | 8.75% |
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
With an excellent Profit Margin value of 11.32%, WWD belongs to the best of the industry, outperforming 84.72% of the companies in the same industry.
WWD's Profit Margin has improved in the last couple of years.
WWD's Operating Margin of 12.44% is fine compared to the rest of the industry. WWD outperforms 77.78% of its industry peers.
WWD's Operating Margin has improved in the last couple of years.
The Gross Margin of WWD (25.88%) is comparable to the rest of the industry.
WWD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.44% | ||
| PM (TTM) | 11.32% | ||
| GM | 25.88% |
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) below the Cost of Capital (WACC), WWD is destroying value.
WWD has less shares outstanding than it did 1 year ago.
WWD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WWD is higher compared to a year ago.
2.2 Solvency
WWD has an Altman-Z score of 6.60. This indicates that WWD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WWD (6.60) is better than 72.22% of its industry peers.
The Debt to FCF ratio of WWD is 3.37, which is a good value as it means it would take WWD, 3.37 years of fcf income to pay off all of its debts.
WWD has a Debt to FCF ratio of 3.37. This is amongst the best in the industry. WWD outperforms 83.33% of its industry peers.
WWD has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
WWD's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. WWD outperforms 65.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 6.6 |
ROIC/WACC0.9
WACC9.77%
2.3 Liquidity
WWD has a Current Ratio of 2.04. This indicates that WWD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WWD (2.04) is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that WWD should not have too much problems paying its short term obligations.
WWD has a Quick ratio (1.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.99% over the past year.
Measured over the past 5 years, WWD shows a small growth in Earnings Per Share. The EPS has been growing by 4.60% on average per year.
The Revenue has been growing slightly by 5.53% in the past year.
WWD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.77% yearly.
EPS 1Y (TTM)2.99%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%7.98%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
3.2 Future
The Earnings Per Share is expected to grow by 12.28% on average over the next years. This is quite good.
WWD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.18% yearly.
EPS Next Y9.99%
EPS Next 2Y13.94%
EPS Next 3Y14.42%
EPS Next 5Y12.28%
Revenue Next Year6.73%
Revenue Next 2Y8.26%
Revenue Next 3Y8.06%
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.
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
WWD is valuated quite expensively with a Price/Earnings ratio of 43.72.
Compared to the rest of the industry, the Price/Earnings ratio of WWD indicates a somewhat cheap valuation: WWD is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.28, WWD is valued quite expensively.
The Price/Forward Earnings ratio is 34.23, which means the current valuation is very expensive for WWD.
WWD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 33.61. WWD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.72 | ||
| Fwd PE | 34.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WWD is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as WWD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.75 | ||
| EV/EBITDA | 29.79 |
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.
A more expensive valuation may be justified as WWD's earnings are expected to grow with 14.42% in the coming years.
PEG (NY)4.38
PEG (5Y)9.51
EPS Next 2Y13.94%
EPS Next 3Y14.42%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, WWD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.12, WWD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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
WWD pays out 16.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of WWD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP16.25%
EPS Next 2Y13.94%
EPS Next 3Y14.42%
271.49
+5.18 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.57%
Inst Owner Change-1.48%
Ins Owners0.16%
Ins Owner Change-0.84%
Market Cap16.28B
Revenue(TTM)3.43B
Net Income(TTM)387.78M
Analysts77.33
Price Target302.44 (11.4%)
Short Float %2.16%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.98
Dividend Growth(5Y)9.14%
DP16.25%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.53%
Min EPS beat(2)6.42%
Max EPS beat(2)14.65%
EPS beat(4)4
Avg EPS beat(4)11.21%
Min EPS beat(4)6.42%
Max EPS beat(4)14.65%
EPS beat(8)8
Avg EPS beat(8)12.9%
EPS beat(12)11
Avg EPS beat(12)13.72%
EPS beat(16)11
Avg EPS beat(16)4.92%
Revenue beat(2)2
Avg Revenue beat(2)3.3%
Min Revenue beat(2)1.82%
Max Revenue beat(2)4.78%
Revenue beat(4)3
Avg Revenue beat(4)2.41%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)4.78%
Revenue beat(8)6
Avg Revenue beat(8)1.89%
Revenue beat(12)10
Avg Revenue beat(12)3.38%
Revenue beat(16)10
Avg Revenue beat(16)1.2%
PT rev (1m)1.16%
PT rev (3m)4.18%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)3.3%
EPS NY rev (1m)0.61%
EPS NY rev (3m)4.84%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.72 | ||
| Fwd PE | 34.23 | ||
| P/S | 4.75 | ||
| P/FCF | 58.75 | ||
| P/OCF | 42.88 | ||
| P/B | 6.6 | ||
| P/tB | 13.35 | ||
| EV/EBITDA | 29.79 |
EPS(TTM)6.21
EY2.29%
EPS(NY)7.93
Fwd EY2.92%
FCF(TTM)4.62
FCFY1.7%
OCF(TTM)6.33
OCFY2.33%
SpS57.13
BVpS41.16
TBVpS20.34
PEG (NY)4.38
PEG (5Y)9.51
Graham Number75.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 15.71% | ||
| ROCE | 11.52% | ||
| ROIC | 8.75% | ||
| ROICexc | 9.9% | ||
| ROICexgc | 15.21% | ||
| OM | 12.44% | ||
| PM (TTM) | 11.32% | ||
| GM | 25.88% | ||
| FCFM | 8.09% |
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%
ROICexgc growth 3Y16.18%
ROICexgc 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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 90.48% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 11.47 | ||
| Cash Conversion | 70.36% | ||
| Profit Quality | 71.46% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 6.6 |
F-Score5
WACC9.77%
ROIC/WACC0.9
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)2.99%
EPS 3Y23.55%
EPS 5Y4.6%
EPS Q2Q%7.98%
EPS Next Y9.99%
EPS Next 2Y13.94%
EPS Next 3Y14.42%
EPS Next 5Y12.28%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
Revenue Next Year6.73%
Revenue Next 2Y8.26%
Revenue Next 3Y8.06%
Revenue Next 5Y2.18%
EBIT growth 1Y-4.47%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year33.19%
EBIT Next 3Y20.41%
EBIT Next 5Y16.33%
FCF growth 1Y45.58%
FCF growth 3Y-7.06%
FCF growth 5Y3.3%
OCF growth 1Y44.25%
OCF growth 3Y-1.87%
OCF growth 5Y2.37%
WOODWARD INC / WWD FAQ
What is the fundamental rating for WWD stock?
ChartMill assigns a fundamental rating of 6 / 10 to WWD.
Can you provide the valuation status for WOODWARD INC?
ChartMill assigns a valuation rating of 3 / 10 to WOODWARD INC (WWD). This can be considered as Overvalued.
What is the profitability of WWD stock?
WOODWARD INC (WWD) has a profitability rating of 8 / 10.
What is the expected EPS growth for WOODWARD INC (WWD) stock?
The Earnings per Share (EPS) of WOODWARD INC (WWD) is expected to grow by 9.99% in the next year.
How sustainable is the dividend of WOODWARD INC (WWD) stock?
The dividend rating of WOODWARD INC (WWD) is 5 / 10 and the dividend payout ratio is 16.25%.