Woodward, Inc.
Woodward, Inc. Fundamental Analysis
Woodward, Inc. (WWD) shows moderate financial fundamentals with a PE ratio of 40.73, profit margin of 12.85%, and ROE of 20.25%. The company generates $4.0B in annual revenue with moderate year-over-year growth of 7.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WWD's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWWD demonstrates superior asset utilization.
Valuation Score
ModerateWWD shows balanced valuation metrics.
Growth Score
ExcellentWWD delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWWD maintains a strong and stable balance sheet.
Profitability Score
ModerateWWD maintains healthy but balanced margins.
Key Financial Metrics
Is WWD Expensive or Cheap?
P/E Ratio
WWD trades at 40.73 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WWD's PEG of 1.18 indicates fair valuation.
Price to Book
The market values Woodward, Inc. at 8.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.84 times EBITDA. This signals the market has high growth expectations.
How Well Does WWD Make Money?
Net Profit Margin
For every $100 in sales, Woodward, Inc. keeps $12.85 as profit after all expenses.
Operating Margin
Core operations generate 14.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.25 in profit for every $100 of shareholder equity.
ROA
Woodward, Inc. generates $10.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Woodward, Inc. produces operating cash flow of $562.87M, showing steady but balanced cash generation.
Free Cash Flow
Woodward, Inc. produces free cash flow of $387.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.51 in free cash annually.
FCF Yield
WWD converts 1.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How WWD Stacks Against Its Sector Peers
| Metric | WWD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.73 | 26.09 | Worse (Expensive) |
| ROE | 20.25% | 1271.00% | Weak |
| Net Margin | 12.85% | -30278.00% (disorted) | Strong |
| Debt/Equity | 0.45 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.73 | 8.97 | Neutral |
| ROA | 10.34% | -1493581.00% (disorted) | Strong |
WWD outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Woodward, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.42%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
92.26%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
40.97%
Industry Style: Cyclical, Value, Infrastructure
High Growth