Woodward (WWD) AI Stock Analysis

• Market Cap: $17.98B
• Dividend Yield: 0.37%
• Average Volume (3M): 518.87K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.19
• 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: 592,826
• 30 Day Avg. Volume: 518,872
• 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: 0.89
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 16.73
• Enterprise Value/Ebitda: 23.51
• 1Y Price Target: $310.00
• Price Target Upside: 3.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 8.03
• Revenue Forecast (FY): $3.94B

• Rating: 77 Outperform
• Price Target: $341.00 ▲(13.57% Upside)

Woodward's overall stock score reflects strong financial performance and positive earnings call highlights, indicating a well-managed company with growth potential. However, technical indicators suggest overbought conditions, and the high P/E ratio indicates potential overvaluation, which could limit upside in the near term.

Positive Factors

Revenue Growth

Achieving record revenue signifies strong market demand and effective execution across business segments, supporting long-term growth.

Aerospace Segment Expansion

Significant growth in aerospace sales and margin expansion highlight competitive strength and potential for sustained profitability.

Free Cash Flow Generation

Strong free cash flow generation and shareholder returns indicate robust financial health and effective capital management.

Negative Factors

Commercial OEM Sales Decline

Decline in commercial OEM sales could impact revenue growth, highlighting dependency on key clients and market conditions.

China Market Challenges

Decreased sales in China reflect geopolitical and market challenges, potentially affecting growth in a key region.

Muted Growth in Commercial Services

Expectations of muted growth in commercial services suggest potential stagnation in a previously strong revenue stream.

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 statements indicate strong profitability and financial stability. The income statement shows consistent revenue growth and robust profit margins. The balance sheet reflects reduced leverage and a stable capital structure, while the cash flow statement highlights strong cash generation. Despite some missing data points, the overall financial health appears strong.

Income Statement

Woodward has demonstrated consistent revenue growth over the past few years, with a notable 4.11% increase in the most recent year. The company maintains a strong net profit margin of 12.39% in the latest period, indicating efficient cost management and profitability. However, the gross profit margin data is missing for the latest year, which limits a complete analysis of cost efficiency. Overall, the income statement reflects a positive growth trajectory and robust profitability.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio, which has improved significantly from 0.41 to 0.10 over the past year, indicating reduced leverage and financial risk. The equity ratio is stable, suggesting a solid capital structure. However, the return on equity (ROE) data is missing for the latest year, which restricts a full assessment of shareholder returns. Overall, the balance sheet reflects financial stability and reduced leverage.

Cash Flow

Woodward's cash flow statement indicates strong free cash flow growth of 22.83% in the latest year, highlighting improved cash generation capabilities. The free cash flow to net income ratio of 0.72 suggests effective conversion of earnings into cash. However, the operating cash flow to net income ratio is not available, which limits a comprehensive 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	680.38M	680.38M	618.10M	443.35M	355.07M	409.61M
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: 300.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 300.25 is above the 20-day moving average (MA) of 271.81, above the 50-day MA of 260.99, and above the 200-day MA of 228.01, indicating a bullish trend. The MACD of 9.95 indicates Negative momentum. The RSI at 72.68 is Negative, neither overbought nor oversold. The STOCH value of 90.70 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
CW	78 Outperform	$20.14B	44.48	18.53%	0.17%	9.51%	16.03%
WWD	77 Outperform	$17.98B	41.74	18.64%	0.37%	7.30%	19.54%
BWXT	69 Neutral	$15.99B	52.32	26.69%	0.57%	14.01%	10.92%
DRS	68 Neutral	$8.84B	33.72	10.35%	1.08%	12.27%	33.16%
TXT	67 Neutral	$14.45B	18.04	11.46%	0.10%	1.83%	-0.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KTOS	61 Neutral	$12.36B	596.17	1.20%	―	14.00%	23.78%

Woodward Corporate Events

Navigating Technological Challenges: Woodward’s Strategy for Innovation and Market Adaptation

Woodward faces significant business risks due to the rapidly evolving technological landscape and the frequent introduction of new products in its markets. The company must continuously enhance existing products and develop new ones to remain competitive, aligning its efforts with customer expectations and industry standards. However, challenges such as potential technological obsolescence, insufficient resources for innovation, and market acceptance issues could adversely impact its business operations and financial health. Additionally, managing the transition from older to newer products is crucial to avoid inventory issues and meet customer demands effectively.

Woodward’s Earnings Call: Record Revenue and Strategic Growth

Woodward’s recent earnings call painted a picture of robust performance, marked by impressive revenue growth and a significant increase in earnings per share (EPS). Despite these successes, the company acknowledged some challenges, including a decline in commercial OEM sales and tempered future growth expectations in certain sectors.

Woodward Reports Record Sales and Earnings for 2025

Woodward, Inc. is a global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets, headquartered in Fort Collins, Colorado. The company focuses on delivering innovative systems that perform in harsh environments to power a clean future.

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.

The most recent analyst rating on (WWD) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Woodward stock, see the WWD Stock Forecast page.

Woodward Announces Quarterly Cash Dividend Approval

On September 16, 2025, Woodward, Inc.’s Board of Directors approved a quarterly cash dividend of $0.28 per share, to be paid on December 4, 2025, to stockholders of record as of November 20, 2025. This announcement reflects Woodward’s ongoing commitment to returning value to its shareholders, potentially enhancing its market positioning and reinforcing investor confidence in its financial stability.

The most recent analyst rating on (WWD) stock is a Buy with a $273.00 price target. To see the full list of analyst forecasts on Woodward stock, see the WWD Stock Forecast page.