WOODWARD INC (WWD)
US9807451037 - Common Stock
We assign a fundamental rating of 6 out of 10 to WWD. WWD was compared to 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 decent growth rate and is not valued too expensively. These ratings could make WWD a good candidate for quality investing.
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.
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 has a Return On Assets of 8.62%. This is amongst the best in the industry. WWD outperforms 86.15% of its industry peers.
Looking at the Return On Equity, with a value of 17.25%, WWD belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Return On Invested Capital of WWD (10.31%) is better than 86.15% 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 7.71%.
The 3 year average ROIC (6.49%) for WWD is below the current ROIC(10.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 17.25% | ||
| ROIC | 10.31% |
ROA(3y)5.14%
ROA(5y)5.63%
ROE(3y)9.89%
ROE(5y)11.35%
ROIC(3y)6.49%
ROIC(5y)7.03%
1.3 Margins
With a decent Profit Margin value of 11.47%, WWD is doing good in the industry, outperforming 80.00% of the companies in the same industry.
WWD's Profit Margin has been stable in the last couple of years.
WWD's Operating Margin of 13.74% is amongst the best of the industry. WWD outperforms 84.62% of its industry peers.
WWD's Operating Margin has declined in the last couple of years.
WWD has a Gross Margin (26.44%) which is comparable to the rest of the industry.
WWD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.74% | ||
| PM (TTM) | 11.47% | ||
| GM | 26.44% |
OM growth 3Y-3.48%
OM growth 5Y-1.67%
PM growth 3Y-6.11%
PM growth 5Y0.55%
GM growth 3Y-2.39%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WWD is still creating some value.
Compared to 1 year ago, WWD has about the same amount of shares outstanding.
Compared to 5 years ago, WWD has less shares outstanding
The debt/assets ratio for WWD has been reduced compared to a year ago.
2.2 Solvency
WWD has an Altman-Z score of 5.22. This indicates that WWD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WWD (5.22) is better than 76.92% of its industry peers.
The Debt to FCF ratio of WWD is 2.57, which is a good value as it means it would take WWD, 2.57 years of fcf income to pay off all of its debts.
WWD's Debt to FCF ratio of 2.57 is amongst the best of the industry. WWD outperforms 86.15% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that WWD is not too dependend on debt financing.
WWD has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: WWD outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 5.22 |
ROIC/WACC1.17
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.96 indicates that WWD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.96, WWD perfoms like the industry average, outperforming 47.69% of the companies in the same industry.
WWD has a Quick Ratio of 1.29. 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 1.29, WWD is in line with its industry, outperforming 50.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.53% 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 1.70% on average per year.
WWD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.90%.
Measured over the past years, WWD shows a small growth in Revenue. The Revenue has been growing by 4.62% on average per year.
EPS 1Y (TTM)62.53%
EPS 3Y2.15%
EPS 5Y1.7%
EPS Q2Q%18.98%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y5.31%
Revenue growth 5Y4.62%
Sales Q2Q%5.87%
3.2 Future
The Earnings Per Share is expected to grow by 16.52% on average over the next years. This is quite good.
Based on estimates for the next years, WWD will show a small growth in Revenue. The Revenue will grow by 6.22% on average per year.
EPS Next Y43.41%
EPS Next 2Y18.82%
EPS Next 3Y19.9%
EPS Next 5Y16.52%
Revenue Next Year13.06%
Revenue Next 2Y7.99%
Revenue Next 3Y7.78%
Revenue Next 5Y6.22%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WWD is valuated quite expensively with a Price/Earnings ratio of 28.99.
72.31% of the companies in the same industry are more expensive than WWD, based on the Price/Earnings ratio.
WWD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 29.48, the valuation of WWD can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WWD indicates a somewhat cheap valuation: WWD is cheaper than 67.69% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. WWD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
63.08% of the companies in the same industry are more expensive than WWD, based on the Enterprise Value to EBITDA ratio.
WWD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WWD is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.08 | ||
| EV/EBITDA | 18.87 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WWD has a very decent 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 19.90% in the coming years.
PEG (NY)0.67
PEG (5Y)17.03
EPS Next 2Y18.82%
EPS Next 3Y19.9%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 1.49, WWD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, WWD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of WWD is nicely growing with an annual growth rate of 9.04%!
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)9.04%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
15.22% of the earnings are spent on dividend by WWD. This is a low number and sustainable payout ratio.
WWD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.22%
EPS Next 2Y18.82%
EPS Next 3Y19.9%
WOODWARD INC
NASDAQ:WWD (11/22/2024, 3:14:33 PM)
174.82
+2.28 (+1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 29.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.67
PEG (5Y)17.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 17.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.74% | ||
| PM (TTM) | 11.47% | ||
| GM | 26.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)62.53%
EPS 3Y2.15%
EPS 5Y
EPS Q2Q%
EPS Next Y43.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.9%
Revenue growth 3Y5.31%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y