NasdaqGS:WWD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Woodward's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WWD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

WWD

0.1%

US Machinery

-1.1%

US Market


1 Year Return

24.4%

WWD

9.3%

US Machinery

17.8%

US Market

Return vs Industry: WWD exceeded the US Machinery industry which returned 9.8% over the past year.

Return vs Market: WWD exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

WWDIndustryMarket
7 Day1.9%0.1%-1.1%
30 Day0.6%1.2%1.5%
90 Day4.9%0.8%6.6%
1 Year25.3%24.4%11.3%9.3%20.2%17.8%
3 Year75.1%71.4%37.9%29.2%47.5%38.1%
5 Year156.8%147.5%63.9%44.5%71.2%52.4%

Price Volatility Vs. Market

How volatile is Woodward's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WWD ($120.16) is trading below our estimate of fair value ($125)

Significantly Below Fair Value: WWD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WWD is poor value based on its PE Ratio (28.2x) compared to the Machinery industry average (21.6x).

PE vs Market: WWD is poor value based on its PE Ratio (28.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: WWD is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: WWD is overvalued based on its PB Ratio (4.2x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

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

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWD's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).

Earnings vs Market: WWD's earnings (15.8% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: WWD's revenue (4.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WWD's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WWD's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Woodward performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWD has high quality earnings.

Growing Profit Margin: WWD's current net profit margins (8.9%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: WWD's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: WWD's earnings growth over the past year (24.9%) exceeds its 5-year average (7.6% per year).

Earnings vs Industry: WWD earnings growth over the past year (24.9%) exceeded the Machinery industry 0.9%.


Return on Equity

High ROE: WWD's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Woodward's financial position?


Financial Position Analysis

Short Term Liabilities: WWD's short term assets ($1.3B) exceed its short term liabilities ($792.0M).

Long Term Liabilities: WWD's short term assets ($1.3B) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: WWD's debt to equity ratio (61.7%) is considered high.

Reducing Debt: WWD's debt to equity ratio has increased from 60.2% to 61.7% over the past 5 years.

Debt Coverage: WWD's debt is well covered by operating cash flow (30%).

Interest Coverage: WWD's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet

Inventory Level: WWD has a high level of physical assets or inventory.

Debt Coverage by Assets: WWD's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: WWD's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WWD's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: WWD's dividends per share have been stable in the past 10 years.

Growing Dividend: WWD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), WWD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Tom Gendron (58yo)

14.6yrs

Tenure

US$6,041,605

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 ($USD6.04M) is about average for companies of similar size in the US market ($USD6.39M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gendron
Chairman14.6yrsUS$6.04m0.40% $29.7m
Robert Weber
Vice Chairman8.4yrsUS$2.21m0.087% $6.5m
Jonathan Thayer
CFO & Vice Chairman of Corporate Operations0.3yrsUS$4.98mno data
Thomas Cromwell
Vice Chairman & COO1yrsUS$2.91m0.0074% $554.0k
Sagar Patel
Business Unit President of Fuel Systems & Controls8.7yrsUS$1.70m0.0047% $352.9k
John Tysver
Corporate Vice President of Technology3.3yrsno datano data
Don Guzzardo
VP of Investor Relations & Treasurer0yrsno datano data
A. Fawzy
Corporate VP12.7yrsUS$1.30m0.0099% $740.9k
Paul Benson
Corporate Vice President of Human Resources0.4yrsno datano data
Chad Preiss
Business Unit President of Engine & Turbine Controls3.3yrsUS$1.35m0.064% $4.8m

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: WWD's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Gendron
Chairman14.6yrsUS$6.04m0.40% $29.7m
Robert Weber
Vice Chairman8.4yrsUS$2.21m0.087% $6.5m
Gregg Sengstack
Independent Director8.4yrsUS$261.23k0.039% $2.9m
John Cohn
Lead Director2.3yrsUS$263.73k0.032% $2.4m
Paul Donovan
Independent Director20.1yrsUS$251.23k0.067% $5.0m
James Rulseh
Independent Director17.8yrsUS$257.23k0.0048% $360.3k
Mary Petrovich
Independent Director17.6yrsUS$257.23k0.012% $927.8k
Eileen Drake
Independent Director3yrsUS$251.23kno data
Ronald Sega
Independent Director11.8yrsUS$251.23k0.026% $1.9m
Daniel Korte
Independent Director3yrsUS$251.23kno data

10.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: WWD's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Woodward, Inc.'s company bio, 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$7.476b
  • Shares outstanding: 62.22m
  • Website: https://www.woodward.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WWDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
WW1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

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. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and various contractors, as well as through aftermarket sales of components, such as provisioning spares or replacements, and spare parts. The Industrial segment designs, produces, and services systems and products for the management of fuel, air, fluids, gases, motion, combustion, and electricity. Its products include actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, power converters, sensors, and other devices that measure, communicate, and protect electrical distribution systems for use in industrial gas turbines, steam turbines, reciprocating engines, electric power generation and power distribution systems, wind turbines, and compressors. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:46
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.