QualityDipStocks / Industrials · Industrial machinery
Woodward WWD
Outside our quality screen, so we don’t track its dips. It’s 30% below its 52-week high.
Outside our quality screen, trading well above our fair value estimate, 7% under its Market Value.
- Fair value est.
- $184.22−40%
- Market Value
- $326.08price −7%
- Off 52-wk high
- −30%
- Risk vs market
- Above marketbeta 1.28
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $304.65
- Fair value est.base case$184.22−39.5%
- 52-wk lowlowest close, 1 year$257.64−15.4%
- PriceFri Oct 30 close$304.65you are here
- Market Valueavg paid since Aug 21$326.08+7.0%
- 52-wk highhighest close, 1 year$436.44+43.3%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 14.4% ±2 points. Bear = 10.5% and 12.4%; bull = 8.5% and 16.4% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is above even the bull case.
What the price implies To be worth today’s price, WWD’s free cash flow would need to grow about 24% a year for five years; our estimate uses 14%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much WWD moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 3.0× the S&P 500’s.
- Beta vs S&P 500
- 1.28
- Volatility
- 39% vs 13% SPY
- Correlation SPY
- 0.42
- Correlation QQQ
- 0.34
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
GrowthSales grew 22% to $4.2B over the last 12 months vs the 12 months before (SEC filings).
Cash returnsFree cash flow grew 36% over the last 12 months vs the 12 months before.
ProfitabilityReturn on equity of 22% over the last 12 months, up 6 points in two years.
GrowthDiluted EPS grew 20% to $7.19 in FY2025.
ValuationTrades 6.6% below its Market Value of $326.08, the average price paid since the Aug 21 filing.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $184.22, 40% below the price.
ValuationPrice / free cash flow of 49×: a rich price for the cash it generates today.
ValuationP/E of 33.7×, above the 27.5× median for the 130 Industrials companies we cover.
Cash returnsDividend yield of 0.4%, below the 1.1% median for the 116 Industrials companies we cover.
ValuationPrice / book of 7.5×, above the 4.4× median for the 134 Industrials companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Woodward in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Industrial machinery
All fundamentals
P/E 33.7 · FCF yield 2.0% · ROE 22%
Valuation
- P/E
- 33.7×Industrials median 27.5×
- Price / FCF
- 49.4×
- FCF yield
- 2.0%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 4.43×
- Price / book
- 7.51×
- Market cap
- $18.6Bprice × diluted shares
- Enterprise value
- $19.5B
Growth
- Revenue, 12 months
- $4.2B
- Sales growth, 12 months
- +22.3%vs the 12 months before
- Sales growth, 3 yrs
- +14.4%/yrfrom FY2022
- Diluted EPS, 12 months
- $8.99
- EPS growth, last FY
- +19.6%
- Net income, 12 months
- $552M
- Net income growth
- +42%12 months vs before
Profitability
- Gross margin
- 29.5%
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 13.2%
- FCF margin
- 9.0%
- Return on equity
- 22%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $475M
- Total debt
- $1.3B
- Net cash
- −$867M
- Debt / equity
- 0.54×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $377M
- FCF growth, 12 months
- +36%
- Dividend yield
- 0.39%$72M paid
- Payout ratio
- 13%
- Buybacks, 12 months
- $602M3.2% of market cap
- Share count, 1 year
- −0.8%diluted shares vs a year ago
- Stock-based comp
- $35M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From Woodward’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $184.22 · MV $326.08 · FCF value $77.80
Assumes 14.4% growth for 5 years (revenue grew 14.4% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $6.17 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Jul 30, 2026. Net debt $867M, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 37 · 5 days +0.4%
The business
FCF $0.2B · Sales +21%
- Free cash flow, 12 months$0.2B
- Free-cash-flow yield1.0%
- Free-cash-flow margin4%
- Gross margin30%
- Operating margin18%
- Return on invested capital17%
- Return on equity22%
- Sales growth (latest quarter vs year-ago quarter)+21%
- Net debt / EBITDA1.1×
Next report
Nov 18
- DateWed Nov 18, after the close
- Consensus EPS$2.50
- Year-ago EPS$2.09
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
WWD is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.