NasdaqGS:WWD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven 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


Market Performance


7 Day Return

2.6%

WWD

4.7%

US Machinery

1.8%

US Market


1 Year Return

41.2%

WWD

6.6%

US Machinery

7.3%

US Market

Return vs Industry: WWD exceeded the US Machinery industry which returned 6.6% over the past year.

Return vs Market: WWD exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

WWDIndustryMarket
7 Day2.6%4.7%1.8%
30 Day-1.0%-0.6%-0.7%
90 Day-6.9%-0.9%0.06%
1 Year42.1%41.2%8.9%6.6%9.7%7.3%
3 Year87.9%84.0%49.4%39.7%46.3%36.9%
5 Year130.9%122.5%57.6%38.4%64.5%46.5%

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?

10.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WWD ($107.93) is trading below our estimate of fair value ($120.63)

Significantly Undervalued: 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 (25x) compared to the Machinery industry average (20.1x).

PE vs Market: WWD is poor value based on its PE Ratio (25x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WWD is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: WWD is overvalued based on its PB Ratio (3.9x) 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?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWD's forecast earnings growth (19.7% per year) is above the savings rate (2.7%).

Earnings vs Market: WWD's earnings (19.7% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: WWD's revenue (6.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WWD's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WWD's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Woodward performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WWD's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: WWD's earnings growth over the past year (59%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: WWD earnings growth over the past year (59%) exceeded the Machinery industry 18.7%.


Return on Equity

High ROE: WWD's Return on Equity (15.7%) is considered low.


Return on Assets

ROA vs Industry: WWD has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: WWD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Woodward's financial position?


Financial Position Analysis

Short Term Liabilities: WWD's short term assets ($1.3B) exceeds its short term liabilities ($642.7M)

Long Term Liabilities: WWD's short term assets (1.3B) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: WWD's debt to equity ratio (70.1%) is considered high

Reducing Debt: WWD's debt to equity ratio has increased from 58.7% to 70.1% over the past 5 years.

Debt Coverage: WWD's debt is well covered by operating cash flow (29.8%).

Interest Coverage: WWD's interest payments on its debt are well covered by EBIT (10.3x 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 1.085860x debt).


Next Steps

Dividend

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

0.60%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Woodward before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.6%marketbottom25%1.5%markettop25%3.7%industryaverage2.1%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WWD's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WWD's dividend (0.6%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

What is the CEO of Woodward's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Tom Gendron (58yo)

14.3yrs

Tenure

US$6,101,564

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 ($USD6.10M) is about average for companies of similar size in the US market ($USD6.79M).

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


Management Age and Tenure

8.3yrs

Average Tenure

54yo

Average Age

Experienced Management: WWD's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

61yo

Average Age

Experienced Board: WWD's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$671,44522 Feb 19
James Rulseh
EntityIndividual
Role
Member of the Board of Directors
Director
Shares7,000
Max PriceUS$95.92

Ownership Breakdown


Management Team

  • Tom Gendron (58yo)

    Chairman

    • Tenure: 14.3yrs
    • Compensation: US$6.10m
  • A. Fawzy (49yo)

    Corporate VP

    • Tenure: 10.2yrs
    • Compensation: US$1.30m
  • Robert Weber (65yo)

    Senior Consultant

    • Tenure: 0yrs
    • Compensation: US$1.88m
  • Chad Preiss (54yo)

    Business Unit President of Engine & Turbine Controls

    • Tenure: 2.9yrs
    • Compensation: US$1.35m
  • Jack Thayer (48yo)

    CFO & Vice Chairman of Corporate Operations

    • Tenure: 0yrs
    • Compensation: US$274.41k
  • Tom Cromwell (50yo)

    Vice Chairman & COO

    • Tenure: 0.7yrs
  • Steven Meyer (59yo)

    Corporate Vice President of Human Resources

    • Tenure: 10yrs
  • Sagar Patel (53yo)

    Business Unit President of Fuel Systems & Controls

    • Tenure: 8.3yrs
    • Compensation: US$1.49m
  • John Tysver (57yo)

    Corporate Vice President of Technology

    • Tenure: 3yrs
  • Don Guzzardo

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • Gregg Sengstack (61yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$284.41k
  • John Cohn (65yo)

    Lead Director

    • Tenure: 1.9yrs
    • Compensation: US$285.28k
  • Paul Donovan (71yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$274.41k
  • Tom Gendron (58yo)

    Chairman

    • Tenure: 14.3yrs
    • Compensation: US$6.10m
  • Jim Rulseh (64yo)

    Director

    • Tenure: 17.5yrs
    • Compensation: US$282.03k
  • Mary Petrovich (56yo)

    Director

    • Tenure: 17.3yrs
    • Compensation: US$280.41k
  • Eileen Drake (52yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$274.41k
  • Ronald Sega (66yo)

    Director

    • Tenure: 11.5yrs
    • Compensation: US$274.41k
  • Dan Korte (58yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$274.41k

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$6.675b
  • Shares outstanding: 61.85m
  • 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’s Aerospace segment offers fuel pumps, metering units, actuators, air va ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:46
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.