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WWD

WoodwardNasdaqGS:WWD Stock Report

Market Cap

US$7.3b

7D

-2.2%

1Y

52.8%

Updated

23 Sep, 2021

Data

Company Financials +
WWD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends0/6

WWD Overview

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide.

Rewards

Earnings are forecast to grow 19.99% per year

Risk Analysis

WWD passed our risk checks.

Woodward Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Woodward
Historical stock prices
Current Share PriceUS$115.37
52 Week HighUS$74.34
52 Week LowUS$130.75
Beta1.73
1 Month Change-5.23%
3 Month Change-6.75%
1 Year Change52.83%
3 Year Change42.70%
5 Year Change87.32%
Change since IPO2,942.73%

Recent News & Updates

Sep 06
Is Woodward (NASDAQ:WWD) A Risky Investment?

Is Woodward (NASDAQ:WWD) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 20
Is There Now An Opportunity In Woodward, Inc. (NASDAQ:WWD)?

Is There Now An Opportunity In Woodward, Inc. (NASDAQ:WWD)?

Woodward, Inc. ( NASDAQ:WWD ), might not be a large cap stock, but it received a lot of attention from a substantial...

Aug 18

The Benefits Of Buying Woodward

Woodward is an advanced aerospace supplier with content in all major programs - both commercial and defense. The company has great financials and is set to reach pre-COVID levels in 2023. On top of that, investors are in a great spot to benefit from significant long-term dividend growth. The company has both the ability to acquire companies and characteristics that make it a suitable takeover target for larger players in the industry.

Shareholder Returns

WWDUS MachineryUS Market
7D-2.2%-0.7%-0.5%
1Y52.8%39.0%37.5%

Return vs Industry: WWD exceeded the US Machinery industry which returned 37% over the past year.

Return vs Market: WWD exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is WWD's price volatile compared to industry and market?
WWD volatility
WWD Beta1.73
Industry Beta1.25
Market Beta1

Stable Share Price: WWD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WWD's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18707,248Tom Gendronhttps://www.woodward.com

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment offers fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles; and flight deck controls, actuators, servo controls, and motors and sensors for aircraft that are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems.

Woodward Fundamentals Summary

How do Woodward's earnings and revenue compare to its market cap?
WWD fundamental statistics
Market CapUS$7.32b
Earnings (TTM)US$215.98m
Revenue (TTM)US$2.21b

33.7x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WWD income statement (TTM)
RevenueUS$2.21b
Cost of RevenueUS$1.67b
Gross ProfitUS$541.06m
ExpensesUS$325.08m
EarningsUS$215.98m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.43
Gross Margin24.52%
Net Profit Margin9.79%
Debt/Equity Ratio36.4%

How did WWD perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

14%

Payout Ratio

Valuation

Is Woodward undervalued compared to its fair value and its price relative to the market?

33.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WWD ($115.37) is trading above our estimate of fair value ($83.39)

Significantly Below Fair Value: WWD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WWD is poor value based on its PE Ratio (33.7x) compared to the US Machinery industry average (29x).

PE vs Market: WWD is poor value based on its PE Ratio (33.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: WWD is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: WWD is overvalued based on its PB Ratio (3.3x) compared to the US Machinery industry average (2.7x).


Future Growth

How is Woodward forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWD's forecast earnings growth (20% per year) is above the savings rate (2%).

Earnings vs Market: WWD's earnings (20% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: WWD's earnings are forecast to grow, but not significantly.

Revenue vs Market: WWD's revenue (10.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: WWD's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WWD's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Woodward performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWD has high quality earnings.

Growing Profit Margin: WWD's current net profit margins (9.8%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: WWD's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: WWD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WWD had negative earnings growth (-13.6%) over the past year, making it difficult to compare to the Machinery industry average (22.1%).


Return on Equity

High ROE: WWD's Return on Equity (9.8%) is considered low.


Financial Health

How is Woodward's financial position?


Financial Position Analysis

Short Term Liabilities: WWD's short term assets ($1.4B) exceed its short term liabilities ($340.6M).

Long Term Liabilities: WWD's short term assets ($1.4B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: WWD's debt to equity ratio (36.4%) is considered satisfactory.

Reducing Debt: WWD's debt to equity ratio has reduced from 67.7% to 36.4% over the past 5 years.

Debt Coverage: WWD's debt is well covered by operating cash flow (56.8%).

Interest Coverage: WWD's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


Dividend

What is Woodward current dividend yield, its reliability and sustainability?

0.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WWD's dividend (0.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: WWD's dividend (0.49%) is low compared to the top 25% of dividend payers in the US market (3.63%).


Stability and Growth of Payments

Stable Dividend: WWD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WWD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WWD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WWD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Tom Gendron (60 yo)

16.17yrs

Tenure

US$4,943,049

Compensation

Mr. Thomas A. Gendron, also known as Tom, has been the President and Chief Executive Officer of Woodward, Inc. since July 1, 2005 and September 2002 respectively. Previously, Mr. Gendron served as Chief Op...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.94M) is about average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WWD's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: WWD's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WWD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Woodward, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Woodward, Inc.
  • Ticker: WWD
  • Exchange: NasdaqGS
  • Founded: 1870
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$7.324b
  • Shares outstanding: 63.04m
  • Website: https://www.woodward.com

Number of Employees


Location

  • Woodward, Inc.
  • 1081 Woodward Way
  • Fort Collins
  • Colorado
  • 80524
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:56
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.