Woodward (WWD) AI Stock Analysis

• Market Cap: $14.08B
• Dividend Yield: 0.47%
• Average Volume (3M): 480.23K
• Price to Earnings (P/E): 38.2
• Beta (1Y): 1.16
• Revenue Growth: 4.96%
• EPS Growth: 8.41%
• Country: US
• Employees: 9,300
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 1.69
• Shares Outstanding: 59,501,274
• 10 Day Avg. Volume: 537,259
• 30 Day Avg. Volume: 480,227
• PEG Ratio: -1.86
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.07
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 8.84
• Enterprise Value/Ebitda: 3.34
• 1Y Price Target: $228.50
• Price Target Upside: -4.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $260.00 ▲(8.79%Upside)

The strong financial performance and positive earnings call are the most significant factors for Woodward, supported by growth in the Aerospace segment. However, technical indicators suggest caution due to overbought conditions, and valuation metrics indicate potential overvaluation. Industrial segment challenges and the China market soften the outlook.

Positive Factors

Financial Performance

Q1 results were ahead on lower tax and better Aero EBIT, aided by strong aero A/M & Defense OE sales.

Market Demand

Overall pricing and aero A/M demand remains strong, & defense munitions growth should sustain.

Sales Growth

Defense OEM sales increased significantly year over year and sequentially.

Negative Factors

Geopolitical Risks

WWD is cautious on Chinese A/M demand given recent orders.

Market Outlook

Aero A/M comps stiffen in Q2-Q4, which augurs a year-over-year growth deceleration in Q2-Q4.

Tariff Impact

Tariff policy may dampen Marine OE and Marine A/M demand.

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 advanced control systems and components to original equipment manufacturers (OEMs) and end-users in the aerospace and industrial sectors. Key revenue streams include product sales, aftermarket services, and long-term maintenance contracts. The company also benefits from strategic partnerships with major aerospace and industrial firms, which contribute to a steady demand for its innovative solutions. Woodward's earnings are further supported by its focus on research and development, enabling the company to maintain a competitive edge in providing high-performance and environmentally sustainable technologies.

Woodward Financial Statement Overview

Summary

Woodward's financial performance is strong with significant revenue growth and robust profitability. The balance sheet is stable, although increasing debt requires monitoring. Cash flow generation is efficient, supporting operations and investments. Overall, the company is well-positioned in its industry.

Income Statement

Woodward has demonstrated strong revenue growth over recent periods with a significant increase in total revenue from the previous year. The company's gross profit margin is robust, indicating effective cost management, and net profit margin has also improved, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showcasing the company's operational efficiency.

Balance Sheet

The balance sheet of Woodward shows a stable financial position with a moderate debt-to-equity ratio, suggesting manageable leverage levels. The company's equity ratio indicates a solid foundation of equity in its asset base. Return on equity is strong, showing effective use of shareholder funds. However, the increase in total debt warrants caution.

Cash Flow

Woodward's cash flow statement reveals positive free cash flow growth, indicating efficient cash generation. The operating cash flow to net income ratio supports a healthy cash conversion cycle. However, fluctuations in capital expenditures and financing activities suggest varying cash flow management strategies over time.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
3.36B	3.32B	2.91B	2.38B	2.25B	2.50B
	Gross Profit
867.47M	876.48M	677.58M	525.30M	551.06M	640.24M
	EBIT
421.56M	428.30M	304.71M	110.39M	155.56M	216.17M
	EBITDA
621.23M	618.10M	443.35M	231.02M	285.09M	424.72M
	Net Income Common Stockholders
381.41M	372.97M	232.37M	171.70M	208.65M	240.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
364.14M	282.27M	137.45M	107.84M	448.46M	153.27M
	Total Assets
4.49B	4.37B	4.01B	3.81B	4.09B	3.90B
	Total Debt
932.14M	895.14M	742.21M	777.42M	734.85M	838.48M
	Net Debt
568.00M	612.87M	604.76M	669.57M	286.39M	685.21M
	Total Liabilities
2.16B	2.19B	1.94B	1.91B	1.88B	1.91B
	Stockholders Equity
2.34B	2.18B	2.07B	1.90B	2.21B	1.99B
Cash Flow		Free Cash Flow
315.34M	342.81M	232.04M	140.77M	426.98M	302.40M
	Operating Cash Flow
407.31M	439.09M	308.54M	193.64M	464.67M	349.49M
	Investing Cash Flow
-43.71M	-89.22M	-73.55M	-65.45M	-35.30M	-6.88M
	Financing Cash Flow
-316.24M	-218.05M	-196.47M	-442.38M	-136.32M	-290.24M

Woodward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 238.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 238.99 is above the 20-day moving average (MA) of 225.98, above the 50-day MA of 202.01, and above the 200-day MA of 182.02, indicating a bullish trend. The MACD of 9.64 indicates Positive momentum. The RSI at 73.01 is Negative, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, 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
BWXT	75 Outperform	$12.89B	44.87	28.24%	0.71%	9.87%	14.16%
CW	74 Outperform	$17.71B	41.81	17.40%	0.21%	9.77%	15.66%
TXT	74 Outperform	$13.94B	17.49	11.70%	0.10%	0.57%	-5.62%
WWD	72 Outperform	$14.08B	38.22	16.35%	0.47%	4.96%	8.41%
DRS	71 Outperform	$12.05B	51.97	9.50%	0.81%	13.58%	25.96%
SARO	68 Neutral	$10.10B	141.10		―	16.92%	―
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%