Woodward (WWD) AI Stock Analysis

• Market Cap: $18.87B
• Dividend Yield: 0.36%
• Average Volume (3M): 609.72K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 1.20
• Revenue Growth: 7.30%
• EPS Growth: 19.54%
• Country: US
• Employees: 9,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.09
• Shares Outstanding: 59,868,977
• 10 Day Avg. Volume: 695,342
• 30 Day Avg. Volume: 609,716
• PEG Ratio: 1.75
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 4.22
• P/FCF Ratio: 44.22
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 4.22
• Enterprise Value/Gross Profit: 15.75
• Enterprise Value/Ebitda: 24.26
• 1Y Price Target: $328.17
• Price Target Upside: 3.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 8.02
• Revenue Forecast (FY): $3.94B

• Rating: 79 Outperform
• Price Target: $342.00 ▲(8.17% Upside)

Woodward's strong financial performance and strategic corporate actions, such as the share repurchase plan, are the most significant factors driving the score. Positive earnings call sentiment and technical indicators also contribute, though high valuation metrics and potential overbought conditions temper the overall outlook.

Positive Factors

Revenue Growth

Record revenue reflects strong demand across segments, indicating robust market position and potential for sustained growth.

Cash Generation

Strong cash flow and shareholder returns highlight efficient operations and financial health, supporting long-term strategic initiatives.

Strategic Investments

Strategic acquisitions enhance product offerings and market reach, strengthening competitive advantage in key sectors.

Negative Factors

Commercial OEM Sales Decrease

Decline in OEM sales could impact revenue stability, highlighting reliance on major clients and potential vulnerability to industry disruptions.

Impact of Divestiture

Divestiture impacts growth in power generation, potentially limiting expansion in this segment and affecting overall revenue diversification.

China Market Challenges

Challenges in China market may hinder growth in industrial segment, reflecting geopolitical and economic risks affecting global operations.

Woodward Business Overview & Revenue Model

Company Description

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates through two segments: Aerospace and Industrial. The Aerospace segment provides 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, servocontrols, motors, and sensors for aircraft. These products 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 offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. 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.

How the Company Makes Money

Woodward generates revenue through the sale of its diverse range of products and services within the aerospace and industrial sectors. Key revenue streams include the sale of control systems, components, and aftermarket services such as maintenance and repairs. The company benefits from long-term contracts with major aerospace manufacturers and operators, providing a stable income source. Additionally, Woodward's focus on innovation and development of advanced technologies, including digital solutions for energy management, positions it well in growing markets. Strategic partnerships with major players in the aerospace and energy sectors also contribute significantly to its earnings, enabling Woodward to leverage shared resources and access new customer bases.

Woodward Financial Statement Overview

Summary

Woodward's financial performance is robust, with strong revenue and profit growth, improved leverage, and solid cash flow generation. The company is on a positive growth trajectory, supported by enhanced profitability and reduced financial risk. However, missing data in certain areas limits a comprehensive analysis, though the available metrics indicate a well-managed financial position.

Income Statement

Woodward has demonstrated strong revenue growth of 4.11% in the latest year, with a consistent increase over the past few years. The net profit margin improved to 12.39%, indicating enhanced profitability. However, the absence of gross profit margin data for the latest year limits a full assessment of cost efficiency. Overall, the income statement reflects a positive growth trajectory and improved profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly, dropping from 0.41 to a lower level, indicating reduced leverage and a stronger equity position. However, the return on equity (ROE) data is missing for the latest year, which limits the assessment of shareholder returns. The balance sheet shows a stable financial position with a solid equity base.

Cash Flow

Woodward's free cash flow growth rate of 22.83% is a positive indicator of cash generation capability. The free cash flow to net income ratio of 0.72 suggests efficient conversion of profits into cash. However, the operating cash flow to net income ratio is not available for the latest year, which limits a complete cash flow analysis. Overall, the cash flow statement reflects strong cash generation and efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.57B	3.57B	3.32B	2.91B	2.38B	2.25B
Gross Profit	956.29M	956.29M	876.48M	677.58M	525.30M	551.06M
EBITDA	620.80M	680.38M	556.24M	406.09M	334.72M	383.83M
Net Income	442.11M	442.11M	372.97M	232.37M	171.70M	208.65M
Balance Sheet
Total Assets	4.63B	4.63B	4.37B	4.01B	3.81B	4.09B
Cash, Cash Equivalents and Short-Term Investments	327.43M	327.43M	282.27M	137.45M	107.84M	448.46M
Total Debt	245.23M	245.23M	895.14M	748.67M	803.45M	734.85M
Total Liabilities	2.06B	2.06B	2.19B	1.94B	1.91B	1.88B
Stockholders Equity	2.57B	2.57B	2.18B	2.07B	1.90B	2.21B
Cash Flow
Free Cash Flow	340.37M	340.37M	342.81M	229.81M	140.77M	426.98M
Operating Cash Flow	471.29M	471.29M	439.09M	306.31M	193.64M	464.67M
Investing Cash Flow	-119.55M	-119.55M	-89.22M	-73.55M	-65.45M	-35.30M
Financing Cash Flow	-313.93M	-313.93M	-218.05M	-194.24M	-442.38M	-136.32M

Woodward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 316.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWD, the sentiment is Positive. The current price of 316.17 is above the 20-day moving average (MA) of 298.56, above the 50-day MA of 275.66, and above the 200-day MA of 236.70, indicating a bullish trend. The MACD of 9.25 indicates Negative momentum. The RSI at 68.51 is Neutral, neither overbought nor oversold. The STOCH value of 95.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWD.

Woodward Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	79 Outperform	$18.87B	43.96	18.64%	0.36%	7.30%	19.54%
BWXT	75 Outperform	$16.31B	53.12	26.69%	0.56%	14.01%	10.92%
TXT	75 Outperform	$16.02B	19.91	11.46%	0.09%	1.83%	-0.73%
CW	74 Outperform	$20.95B	46.39	18.53%	0.16%	9.51%	16.03%
DRS	70 Outperform	$9.25B	35.12	10.35%	1.04%	12.27%	33.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KTOS	60 Neutral	$13.77B	670.20	1.20%	―	14.00%	23.78%

Woodward Corporate Events

Woodward Announces $1.8 Billion Share Repurchase Plan

On November 20, 2025, Woodward, Inc. announced a new $1.8 billion, three-year share repurchase authorization, following the completion of its previous $600 million authorization. This strategic move underscores the company’s commitment to shareholder value, reflecting confidence in its long-term growth and robust cash generation. Over the past decade, Woodward has returned approximately $2.0 billion to shareholders, emphasizing its strong balance sheet and capital allocation priorities, which include reinvesting in the business, pursuing strategic mergers and acquisitions, and returning cash to shareholders.