Woodward (WWD) AI Stock Analysis

• Market Cap: $15.82B
• Dividend Yield: 0.41%
• Average Volume (3M): 520.36K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 1.17
• Revenue Growth: 5.53%
• EPS Growth: 5.56%
• Country: US
• Employees: 9,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.76
• Shares Outstanding: 59,966,220
• 10 Day Avg. Volume: 475,379
• 30 Day Avg. Volume: 520,357
• PEG Ratio: 0.46
• Price to Book (P/B): 4.73
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 30.06
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 17.54
• Enterprise Value/Ebitda: 24.87
• 1Y Price Target: $294.14
• Price Target Upside: 11.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $269.00 ▲(1.98% Upside)

Woodward's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The company's strategic growth initiatives and solid financial health support its position in the Aerospace & Defense industry. However, the high valuation and mixed technical indicators present some risks, tempering the overall score.

Positive Factors

Aerospace Segment Growth

The significant growth in the aerospace segment, especially with defense OEM sales up 56%, underscores Woodward's strong market position and potential for sustained revenue growth in a key sector.

Strategic Acquisition

The acquisition enhances Woodward's capabilities and market position in the aerospace sector, potentially driving long-term growth through expanded product offerings and market reach.

Financial Stability

A strong balance sheet with low leverage and solid equity ratio indicates financial stability and prudent management, providing a robust foundation for future operations.

Negative Factors

Decline in China On-Highway Sales

The sharp decline in China on-highway sales due to local economic headwinds could impact Woodward's revenue growth and market presence in a significant region.

Commercial OEM Sales Decline

A decline in commercial OEM sales, driven by supply chain issues, may affect Woodward's revenue and market competitiveness in the commercial aerospace sector.

Increased Working Capital

Increased working capital investment, especially in inventory, can strain cash flow and limit financial flexibility, potentially impacting operational efficiency.

Woodward Business Overview & Revenue Model

Company Description

Woodward Inc. (WWD) is a global leader in the design and manufacturing of control solutions for aerospace and industrial applications. The company operates primarily in two segments: Aerospace and Industrial. Woodward's core products include fuel control systems, ignition systems, and electronic control systems for commercial and military aircraft, as well as energy control systems for turbines, engines, and other industrial applications. With a strong focus on innovation and engineering excellence, Woodward aims to enhance the performance and efficiency of its customers' systems.

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 free cash flow growth could be improved. Overall, Woodward is well-positioned in the Aerospace & Defense industry, with strengths in operational efficiency and financial health.

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	229.81M	140.77M	426.98M	302.40M
Operating Cash Flow	379.74M	439.09M	306.31M	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	-194.24M	-442.38M	-136.32M	-290.24M

Woodward Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 263.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 263.79 is above the 20-day moving average (MA) of 252.47, above the 50-day MA of 246.94, and above the 200-day MA of 216.95, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 61.79 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	$21.06B	47.15	17.46%	0.12%	9.89%	16.20%
WWD	74 Outperform	$15.82B	41.73	16.76%	0.41%	5.53%	5.56%
BWXT	71 Outperform	$17.47B	62.37	26.97%	0.50%	10.13%	10.04%
DRS	69 Neutral	$10.63B	43.56	9.99%	0.67%	11.43%	32.31%
TXT	67 Neutral	$14.72B	17.48	11.46%	0.10%	1.83%	-0.73%
KTOS	64 Neutral	$14.23B	958.37	0.88%	―	7.76%	40.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.