Quality Investor

Woodward, Inc.

Rank #377Value

WWD · Nasdaq · Industrials

Woodward, Inc. (WWD) — Rank #377 by gross profitability (GP/assets 0.18) · ROE 17.9% · Piotroski F-Score 9 / 9.

As-of 2026-09-15 · CIK 0000108312 · all metrics point-in-time as of the filing date.

About

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide.

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It operates through two segments, Aerospace and Industrial. The Aerospace segment offers fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, as well as flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. This segment 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. Its Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors used on industrial gas turbines, steam turbines, compressors, and reciprocating engines, as well as aftermarket products and related services. The company primarily serves OEMs and equipment packagers. Woodward, Inc.

was founded in 1870 and is headquartered in Fort Collins, Colorado.

Industry
Aerospace & Defense
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
September 30

Price History

WWD+189.8% · +23.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$18.73B

P/E (annual)

44.1

P/S (annual)

5.3

P/B

7.6

P/OCF (annual)

39.7

Shareholder Yield

1.0%

Employees

10,200

Industry

Aerospace & Defense

Exchange

Nasdaq

Signal Flags

2 green
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 3-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.18
Return on equity
17.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.10
Current ratio
1.65×
Net cash
-$867.08M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

2/2 pass
Revenue growth
7.3%
Piotroski F-Score
9 / 9
Share dilution
-1.0%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

3 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

22.1%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.0% — per-share value needs a total required return of 21.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 6.7%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

17.0%

r = 10% (base)

22.1%

r = 12%

26.5%

Net debt / market cap: 4.4%

Base FCF: $340.4M3Y mean FCF: $305.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

40.8xExpensive
25.4xmed 30.1x40.8x

P / S

Price / revenue per share

5.1xExpensive
2.2xmed 2.7x5.1x

P / B

Price / book value per share

7.0xExpensive
3.2xmed 3.8x7.0x

P / GP

Price / gross profit per share

18.9xExpensive
8.5xmed 11.3x18.9x

P / FCF

Price / free cash flow per share

53.0xExpensive
17.5xmed 27.6x53.0x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.18

Primary signal (Novy-Marx).

14th pctl of 43 SIC 36 peers

Return on equity

17.9%

Gross margin

26.8%

5th pctl of 43 SIC 36 peers

Revenue growth (YoY)

7.3%

RPO growth (YoY)

8.9%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

14.4%

Revenue CAGR (5Y)

7.4%

Earnings CAGR (3Y)

37.1%

FCF CAGR (3Y)

34.2%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.10

22nd pctl of 41 SIC 36 peers (best = lowest)

Current ratio

1.65×

12th pctl of 43 SIC 36 peers

Quick ratio

0.77×

Net cash

-$867.08M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$340.37M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.23

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Piotroski F-Score

F-Score

9 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Value
Capital Return
Hypergrowth
Op. Leverage