Woodward (WWD) AI Stock Analysis

• Market Cap: $14.86B
• Dividend Yield: 0.44%
• Average Volume (3M): 555.50K
• Price to Earnings (P/E): 39.2
• Beta (1Y): 1.17
• Revenue Growth: 5.53%
• EPS Growth: 5.56%
• Country: US
• Employees: 9,300
• Sector: Industrials
• Sector Strength: 76
• Industry: Aerospace & Defense
• EPS (TTM): 1.76
• Shares Outstanding: 59,966,220
• 10 Day Avg. Volume: 502,732
• 30 Day Avg. Volume: 555,501
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 17.54
• Enterprise Value/Ebitda: 24.87
• 1Y Price Target: $288.38
• Price Target Upside: 16.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $275.00 ▲(10.87% Upside)

Woodward's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting record sales and strategic growth initiatives. However, the high valuation and mixed technical indicators temper the score, suggesting cautious optimism for potential investors.

Positive Factors

Financial Performance

Defense OEM sales increased significantly year over year and sequentially.

Pricing Power

Overall, Aero segment pricing rose more than 7%.

Sales Growth

Q3 aerospace aftermarket sales rose 7% sequentially and 30% aided by China strength and broad volume/pricing elsewhere.

Negative Factors

Demand Concerns

Aero OE demand is muted, given Boeing de-stock.

Market Uncertainty

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

Tariff Impact

Marine OE demand has held in, but tariff policy may dampen this 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 products and services across its Aerospace and Industrial segments. Key revenue streams include the sale of control systems, components, and aftermarket services. The company benefits from long-term relationships with major original equipment manufacturers (OEMs) and operators in the aerospace and energy sectors, which provide a steady demand for its products. Additionally, Woodward engages in partnerships and collaborations with other technology firms to develop advanced solutions, further enhancing its market position and revenue potential. The company's commitment to research and development also enables it to introduce new products and services, contributing to its earnings growth.

Woodward Financial Statement Overview

Summary

Woodward demonstrates solid financial performance with steady revenue growth and strong profitability. The company maintains low leverage and strong equity, contributing to financial stability. Cash flow management is efficient, though there is room for improvement in free cash flow growth.

Income Statement

Woodward has demonstrated a solid revenue growth trajectory, particularly with a TTM (Trailing-Twelve-Months) revenue of $3.43 billion, marking a 3.07% increase from the previous year. The company maintains a strong net profit margin of 11.32% for TTM, despite a decrease in gross profit margin to 6.06% compared to previous years. The EBIT margin also shows a decline, but EBITDA margin remains robust at 15.80%, indicating efficient operational management. Overall, the company exhibits stable profitability with potential for further margin improvement.

Balance Sheet

Woodward's balance sheet is strong, characterized by a favorable debt-to-equity ratio of 0.17 in TTM, reflecting low leverage. The equity ratio is healthy at 52.39%, and return on equity (ROE) stands at a solid 15.71%, indicating efficient use of equity to generate profits. These metrics highlight the company's financial stability and prudent management of liabilities, providing a robust foundation for future operations.

Cash Flow

Woodward's cash flow performance is commendable, with a positive free cash flow growth rate of approximately -19.19% from the previous year, reflecting some volatility. The operating cash flow to net income ratio of 0.98 in TTM suggests effective conversion of income to cash, and the free cash flow to net income ratio of 0.71 supports a solid ability to generate cash. The company demonstrates strong cash flow management, though there is room for improvement in free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	3.32B	2.91B	2.38B	2.25B	2.50B
Gross Profit	886.65M	876.48M	677.58M	525.30M	551.06M	640.24M
EBITDA	625.55M	618.10M	443.35M	355.07M	409.61M	448.85M
Net Income	387.78M	372.97M	232.37M	171.70M	208.65M	240.40M
Balance Sheet
Total Assets	4.71B	4.37B	4.01B	3.81B	4.09B	3.90B
Cash, Cash Equivalents and Short-Term Investments	473.16M	282.27M	137.45M	107.84M	448.46M	153.27M
Total Debt	429.02M	895.14M	742.21M	803.45M	734.85M	838.48M
Total Liabilities	2.24B	2.19B	1.94B	1.91B	1.88B	1.91B
Stockholders Equity	2.47B	2.18B	2.07B	1.90B	2.21B	1.99B
Cash Flow
Free Cash Flow	277.11M	342.81M	232.04M	140.77M	426.98M	302.40M
Operating Cash Flow	379.74M	439.09M	308.54M	193.64M	464.67M	349.49M
Investing Cash Flow	-48.50M	-89.22M	-73.55M	-65.45M	-35.30M	-6.88M
Financing Cash Flow	-185.20M	-218.05M	-196.47M	-442.38M	-136.32M	-290.24M

Woodward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 248.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 248.04 is below the 20-day moving average (MA) of 251.72, below the 50-day MA of 248.96, and above the 200-day MA of 201.20, indicating a neutral trend. The MACD of -0.92 indicates Positive momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 45.46 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
CW	77 Outperform	$18.25B	40.87	17.46%	0.18%	9.89%	16.20%
WWD	73 Outperform	$14.86B	39.21	16.76%	0.44%	5.53%	5.56%
TXT	71 Outperform	$14.16B	17.98	11.42%	0.10%	1.19%	-6.77%
BWXT	70 Outperform	$15.15B	51.72	26.97%	0.61%	10.13%	10.04%
DRS	68 Neutral	$10.92B	44.11	9.99%	0.66%	11.43%	32.31%
Sector *	65 Neutral	£2.65B	12.63	3.41%	3.25%	2.43%	-22.02%
SARO	62 Neutral	$8.99B	68.57	7.25%	―	16.09%	―

Woodward Corporate Events

Woodward Announces Leadership Changes in Aerospace Division

On August 8, 2025, Woodward, Inc. announced leadership changes as part of its succession planning process, effective October 1, 2025. Terence J. Voskuil will transition from his role as Executive Vice President and President, Aerospace, to become the Executive Vice President, Chief Technology Officer, Aerospace, while Shawn McLevige will assume the position of Executive Vice President and President, Aerospace. These changes are aimed at fostering growth, innovation, and operational excellence within the company. Additionally, Alison Seward has been appointed Vice President and General Manager of Engine and Turbine Fluid Systems for the Industrial segment. These appointments reflect Woodward’s commitment to leveraging internal talent to drive strategic initiatives and shareholder value.

Woodward Declares Quarterly Dividend of $0.28 Per Share

On July 23, 2025, Woodward, Inc.’s Board of Directors approved a quarterly cash dividend of $0.28 per share, payable on September 4, 2025, to stockholders of record as of August 21, 2025. This announcement underscores Woodward’s commitment to returning value to its shareholders and may positively impact investor confidence in the company’s financial health and strategic direction.