WOODWARD INC (WWD) Stock Fundamental Analysis
USA - NASDAQ:WWD - US9807451037 - Common Stock
238.17 USD
-1.81 (-0.75%)
238.17 USD
0 (0%)
WWD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 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 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.
Each year in the past 5 years WWD has been profitable.
WWD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.23%, WWD belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
WWD has a Return On Equity of 15.71%. This is amongst the best in the industry. WWD outperforms 83.82% of its industry peers.
WWD's Return On Invested Capital of 8.75% is fine compared to the rest of the industry. WWD outperforms 77.94% 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 8.21%.
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
WWD's Profit Margin of 11.32% is amongst the best of the industry. WWD outperforms 85.29% of its industry peers.
In the last couple of years the Profit Margin of WWD has grown nicely.
Looking at the Operating Margin, with a value of 12.44%, WWD is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
In the last couple of years the Operating Margin of WWD has grown nicely.
Looking at the Gross Margin, with a value of 25.88%, WWD is in line with its industry, outperforming 57.35% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WWD is destroying value.
The number of shares outstanding for WWD has been reduced compared to 1 year ago.
Compared to 5 years ago, WWD has less shares outstanding
Compared to 1 year ago, WWD has a worse debt to assets ratio.
2.2 Solvency
WWD has an Altman-Z score of 6.15. This indicates that WWD is financially healthy and has little risk of bankruptcy at the moment.
WWD's Altman-Z score of 6.15 is fine compared to the rest of the industry. WWD outperforms 70.59% 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.
Looking at the Debt to FCF ratio, with a value of 3.37, WWD belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
WWD has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.35, WWD is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 6.15 |
ROIC/WACC0.92
WACC9.54%
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.
Looking at the Current ratio, with a value of 2.04, WWD is in line with its industry, outperforming 45.59% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that WWD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.39, WWD perfoms like the industry average, outperforming 48.53% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 4.60% on average over the past years.
Looking at the last year, WWD shows a small growth in Revenue. The Revenue has grown by 5.53% in the last 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 11.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y10.09%
EPS Next 2Y13.68%
EPS Next 3Y14.52%
EPS Next 5Y11.14%
Revenue Next Year6.55%
Revenue Next 2Y7.88%
Revenue Next 3Y7.72%
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
The Price/Earnings ratio is 38.35, which means the current valuation is very expensive for WWD.
Compared to the rest of the industry, the Price/Earnings ratio of WWD indicates a somewhat cheap valuation: WWD is cheaper than 64.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. WWD is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 30.16, 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 63.24% 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 (22.73), we can say WWD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 30.16 |
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 63.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.54 | ||
| EV/EBITDA | 26.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WWD may justify a higher PE ratio.
WWD's earnings are expected to grow with 14.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.8
PEG (5Y)8.34
EPS Next 2Y13.68%
EPS Next 3Y14.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, WWD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.51, WWD pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, WWD pays less dividend than the S&P500 average, which is at 2.41.
| 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 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
16.25% 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 earnings are growing more, so the dividend growth is sustainable.
DP16.25%
EPS Next 2Y13.68%
EPS Next 3Y14.52%
238.17
-1.81 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners90.51%
Inst Owner Change-0.85%
Ins Owners0.16%
Ins Owner Change-3.21%
Market Cap14.28B
Analysts73.75
Price Target290.3 (21.89%)
Short Float %1.67%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)0%
PT rev (3m)36.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.52%
EPS NY rev (1m)4.93%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 30.16 | ||
| P/S | 4.17 | ||
| P/FCF | 51.54 | ||
| P/OCF | 37.61 | ||
| P/B | 5.79 | ||
| P/tB | 11.71 | ||
| EV/EBITDA | 26.66 |
EPS(TTM)6.21
EY2.61%
EPS(NY)7.9
Fwd EY3.32%
FCF(TTM)4.62
FCFY1.94%
OCF(TTM)6.33
OCFY2.66%
SpS57.13
BVpS41.16
TBVpS20.34
PEG (NY)3.8
PEG (5Y)8.34
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%
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-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 | 6.15 |
F-Score5
WACC9.54%
ROIC/WACC0.92
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 Y10.09%
EPS Next 2Y13.68%
EPS Next 3Y14.52%
EPS Next 5Y11.14%
Revenue 1Y (TTM)5.53%
Revenue growth 3Y13.97%
Revenue growth 5Y2.77%
Sales Q2Q%7.99%
Revenue Next Year6.55%
Revenue Next 2Y7.88%
Revenue Next 3Y7.72%
Revenue Next 5Y2.18%
EBIT growth 1Y-4.47%
EBIT growth 3Y20.46%
EBIT growth 5Y7.58%
EBIT Next Year33.35%
EBIT Next 3Y20.88%
EBIT Next 5Y15.4%
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%