Woodward
Market Cap
US$7.5b
Last Updated
2020/02/23 23:46 UTC
Data Sources
Company Financials +
Executive Summary
Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide.
Rewards
Risk Analysis
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
| WWD | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 0.1% | -1.1% |
| 30 Day | 0.6% | 1.2% | 1.5% |
| 90 Day | 4.9% | 0.8% | 6.6% |
| 1 Year | 25.3%24.4% | 11.3%9.3% | 20.2%17.8% |
| 3 Year | 75.1%71.4% | 37.9%29.2% | 47.5%38.1% |
| 5 Year | 156.8%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
4 days ago | Simply Wall St
What Is Woodward, Inc.'s (NASDAQ:WWD) Share Price Doing?1 week ago | Simply Wall St
Why You Might Be Interested In Woodward, Inc. (NASDAQ:WWD) For Its Upcoming Dividend3 weeks ago | Simply Wall St
What Type Of Shareholder Owns Woodward, Inc.'s (NASDAQ:WWD)?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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 14.6yrs | US$6.04m | 0.40% $29.7m | |
| Vice Chairman | 8.4yrs | US$2.21m | 0.087% $6.5m | |
| CFO & Vice Chairman of Corporate Operations | 0.3yrs | US$4.98m | no data | |
| Vice Chairman & COO | 1yrs | US$2.91m | 0.0074% $554.0k | |
| Business Unit President of Fuel Systems & Controls | 8.7yrs | US$1.70m | 0.0047% $352.9k | |
| Corporate Vice President of Technology | 3.3yrs | no data | no data | |
| VP of Investor Relations & Treasurer | 0yrs | no data | no data | |
| Corporate VP | 12.7yrs | US$1.30m | 0.0099% $740.9k | |
| Corporate Vice President of Human Resources | 0.4yrs | no data | no data | |
| Business Unit President of Engine & Turbine Controls | 3.3yrs | US$1.35m | 0.064% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 14.6yrs | US$6.04m | 0.40% $29.7m | |
| Vice Chairman | 8.4yrs | US$2.21m | 0.087% $6.5m | |
| Independent Director | 8.4yrs | US$261.23k | 0.039% $2.9m | |
| Lead Director | 2.3yrs | US$263.73k | 0.032% $2.4m | |
| Independent Director | 20.1yrs | US$251.23k | 0.067% $5.0m | |
| Independent Director | 17.8yrs | US$257.23k | 0.0048% $360.3k | |
| Independent Director | 17.6yrs | US$257.23k | 0.012% $927.8k | |
| Independent Director | 3yrs | US$251.23k | no data | |
| Independent Director | 11.8yrs | US$251.23k | 0.026% $1.9m | |
| Independent Director | 3yrs | US$251.23k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WWD | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1972 |
| WW1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 23:46 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.