WOODWARD INC (WWD) Stock Fundamental Analysis
NASDAQ:WWD - Nasdaq - US9807451037 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to WWD. WWD was compared to 65 industry peers in the Aerospace & Defense industry. Both the health and profitability get an excellent rating, making WWD a very profitable company, without any liquidiy or solvency issues. WWD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WWD had positive earnings in the past year.
WWD had a positive operating cash flow in the past year.
Each year in the past 5 years WWD has been profitable.
Each year in the past 5 years WWD had a positive operating cash flow.
1.2 Ratios
WWD has a Return On Assets of 8.64%. This is amongst the best in the industry. WWD outperforms 89.23% of its industry peers.
The Return On Equity of WWD (16.75%) is better than 86.15% of its industry peers.
WWD has a Return On Invested Capital of 9.93%. This is amongst the best in the industry. WWD outperforms 81.54% of its industry peers.
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 7.87%.
The 3 year average ROIC (7.87%) for WWD is below the current ROIC(9.93%), indicating increased profibility in the last year.
| 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 81.54% 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 83.08% of its industry peers.
WWD's Operating Margin has improved in the last couple of years.
WWD has a Gross Margin (26.03%) which 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 | 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
WWD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, WWD has a worse debt to assets ratio.
2.2 Solvency
WWD has an Altman-Z score of 5.29. 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 5.29, WWD is in the better half of the industry, outperforming 69.23% 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.
With an excellent Debt to FCF ratio value of 2.66, WWD belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
WWD has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WWD has a better Debt to Equity ratio (0.34) than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.66 | ||
| Altman-Z | 5.29 |
ROIC/WACC1.02
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.89 indicates that WWD should not have too much problems paying its short term obligations.
WWD has a Current ratio of 1.89. This is comparable to the rest of the industry: WWD outperforms 41.54% of its industry peers.
A Quick Ratio of 1.19 indicates that WWD should not have too much problems paying its short term obligations.
WWD's Quick ratio of 1.19 is on the low side compared to the rest of the industry. WWD is outperformed by 60.00% of its industry peers.
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
The Earnings Per Share is expected to grow by 6.76% on average over the next years.
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 Y2.12%
EPS Next 2Y9.95%
EPS Next 3Y12.7%
EPS Next 5Y6.76%
Revenue Next Year3.74%
Revenue Next 2Y6.19%
Revenue Next 3Y6.48%
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 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.31, which means the current valuation is very expensive for WWD.
70.77% of the companies in the same industry are more expensive than WWD, based on the Price/Earnings ratio.
WWD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.85, WWD is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WWD indicates a somewhat cheap valuation: WWD is cheaper than 72.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WWD to the average of the S&P500 Index (21.37), we can say WWD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 23.85 |
4.2 Price Multiples
WWD's Enterprise Value to EBITDA ratio is in line with the industry average.
84.62% of the companies in the same industry are more expensive than WWD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.87 | ||
| EV/EBITDA | 18.85 |
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.
WWD's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.81
PEG (5Y)6.37
EPS Next 2Y9.95%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
WWD has a yearly dividend return of 0.66%, which is pretty low.
WWD's Dividend Yield is a higher than the industry average which is at 1.36.
With a Dividend Yield of 0.66, WWD pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of WWD is nicely growing with an annual growth rate of 9.14%!
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 16.18% of its income as dividend. This is a 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 2Y9.95%
EPS Next 3Y12.7%
NASDAQ:WWD (4/23/2025, 11:21:09 AM)
176.17
+8.36 (+4.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners88.41%
Inst Owner Change1.03%
Ins Owners0.21%
Ins Owner Change-5.09%
Market Cap10.46B
Analysts71.25
Price Target206.08 (16.98%)
Short Float %1.72%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)0%
PT rev (3m)4.84%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)0.18%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.65%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 23.85 | ||
| P/S | 3.16 | ||
| P/FCF | 30.87 | ||
| P/OCF | 24.5 | ||
| P/B | 4.74 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | 18.85 |
EPS(TTM)6.01
EY3.41%
EPS(NY)7.39
Fwd EY4.19%
FCF(TTM)5.71
FCFY3.24%
OCF(TTM)7.19
OCFY4.08%
SpS55.77
BVpS37.2
TBVpS17.22
PEG (NY)13.81
PEG (5Y)6.37
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 | 5.29 |
F-Score8
WACC9.73%
ROIC/WACC1.02
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 Y2.12%
EPS Next 2Y9.95%
EPS Next 3Y12.7%
EPS Next 5Y6.76%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%-1.78%
Revenue Next Year3.74%
Revenue Next 2Y6.19%
Revenue Next 3Y6.48%
Revenue Next 5Y2.18%
EBIT growth 1Y11.8%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year28.23%
EBIT Next 3Y17.72%
EBIT Next 5Y10.82%
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%