Woodward, Inc. (WWD) stock analysis

P/E above its 5-year median

Woodward's P/E of 37.7 is above its own 5-year median of 36.3.

P/E above the industry

Woodward's P/E of 37.7 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA above its 5-year median

Woodward's EV/EBITDA of 24.3 is above its 5-year median of 20.2.

P/B above the industry

Woodward's price-to-book of 8.08 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 6.03.

Trading above fair value

The share price of $338.55 is above our fair value estimate of $288.05.

Margin of safety under 20%

The price is 17.5% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 14.4% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 38.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 42.4% over the last twelve months, against a 5-year average of 13.0% a year.

Growing faster than the industry

Revenue grew 22.3% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 13.5%.

Guidance lowered

Woodward lowered its FY26 Industrial Sales growth outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 29.5% over the last twelve months, against 25.9% a year earlier.

Return on equity under 15%

Return on equity was 22.3% over the last twelve months and averaged 13.2% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Woodward's return on equity of 22.3% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 12.0%.

Earnings grew over 5 years

Net income grew 13.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.2% over the last twelve months, against a 5-year average of 9.6%.

Net margin above the industry

Woodward's net margin of 13.2% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 5.8%.

High debt

Debt is 54.2% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 42.1% five years ago to 54.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 43.6% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.65 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.49; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Woodward paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Woodward yields 0.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.