# Woodward (WWD.US)

Canonical: https://gigainvestors.com/s/WWD

Analysis as of: 2026-10-16T07:33:15.305Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $333.27 per share; close as of 2026-10-15.

Estimated value: low $109.65 per share, central $139.10 per share, high $161.46 per share. Buy at or below the central value $139.10 per share. Valuation as of 2026-10-16T07:33:15.305Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.11×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.12×

- FY2020: 0.12×

- FY2021: 0.11×

- FY2022: 0.09×

- FY2023: 0.11×

- FY2024: 0.13×

- FY2025: 0.14×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 14.5%

- ROIC, second-lowest year: 12.3%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 25.9%

- Recent gross margin (lower of latest and 3-year median): 26.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 10.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.6%

- FY2017: 15.9%

- FY2018: 12.3%

- FY2019: 14.4%

- FY2020: 13.3%

- FY2021: 12.6%

- FY2022: 10.1%

- FY2023: 14.7%

- FY2024: 18.2%

- FY2025: 20.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.16×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.7B

- Net income, five-year total: $1.4B

- Return on incremental invested capital: 62.6%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.2 pp

- Working capital / revenue, final three-year average: 34.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.44×

- FY2022: 1.39×

- FY2023: 1.19×

- FY2024: 1.05×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.6% vs 18.2%

- Per-share earnings: 2.85 to 6.01 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: $11B

- Cumulative retained earnings: $1.8B

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.8%

- Per-share value change: $3.16

- Per-share value, starting three-year median: $2.85

- Per-share value, ending three-year median: $6.01

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 2.5%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $840M

- Cumulative net income, 10 years: $2.5B

- ROIC, first three-year median: 15.6%

- ROIC, last three-year median: 18.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.85

- FY2017: $3.16

- FY2018: $2.82

- FY2019: $4.02

- FY2020: $3.74

- FY2021: $3.18

- FY2022: $2.71

- FY2023: $3.78

- FY2024: $6.01

- FY2025: $7.19

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -0.6%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 6.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.07×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.49×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.6%

- FY2017: -3.9%

- FY2018: -3.1%

- FY2019: -3.3%

- FY2020: -2.8%

- FY2021: -6.3%

- FY2022: -0.6%

- FY2023: -1.9%

- FY2024: -1.5%

- FY2025: -0.6%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 22% since Jun 2026 · "Woodward shares dip as cash flow guidance disappoints" (seekingalpha.com, Jul 2025) · sales +7.3%

Story as of 2026-10-16T09:59:53.828Z; price observation 2026-10-15.

Price needs cash profits to grow 15.3% a year for ten years

- 2025-04-29: Woodward narrows FY25 adjusted EPS view to $5.95-$6.25 from $5.85-$6.25 ([finance.yahoo.com](https://finance.yahoo.com/news/woodward-narrows-fy25-adjusted-eps-201220401.html))

- 2025-07-28: Woodward shares dip as cash flow guidance disappoints ([seekingalpha.com](https://seekingalpha.com/news/4473040-woodward-shares-dip-as-cash-flow-guidance-disappoints?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-29: Woodward (WWD): Evaluating Valuation After Robust Earnings, Upbeat 2026 Outlook, and New Buyback Program ([finance.yahoo.com](https://finance.yahoo.com/news/woodward-wwd-evaluating-valuation-robust-010706525.html))

- 2026-02-03: Woodward raises 2026 sales growth outlook to 14–18% while winding down China on-highway segment ([seekingalpha.com](https://seekingalpha.com/news/4545903-woodward-raises-2026-sales-growth-outlook-to-14-18-percent-while-winding-down-china-on?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-17: Woodward Faces Long-Term Earnings Upside From Growing LEAP, GTF Engine Repair Activity, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/woodward-faces-long-term-earnings-143933863.html))

### Sales · FY2024–2025

sales +7.3%; source https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm; observed 2025-11-25.

- FY2016: $2.0B 

- FY2017: $2.1B 

- FY2018: $2.3B 

- FY2019: $2.9B 

- FY2020: $2.5B 

- FY2021: $2.2B 

- FY2022: $2.4B 

- FY2023: $2.9B 

- FY2024: $3.3B 

- FY2025: $3.6B 

### Gross margin · FY2025

gross margin 26.8%; source https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm; observed 2025-11-25.

- FY2016: 27.1% 

- FY2017: 27.3% 

- FY2018: 26.1% 

- FY2019: 24.4% 

- FY2020: 25.7% 

- FY2021: 24.5% 

- FY2022: 22.0% 

- FY2023: 23.2% 

- FY2024: 26.4% 

- FY2025: 26.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are USD 3.6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm (filed 2025-11-25); FY2025: revenue 3567064000; grossProfit 956292000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WWD.US: Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. 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.

### Why customers stay

Margins ranged from 23.2% to 26.8% during 2023–25; it earns 14.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: grossProfit / revenue = 23.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: grossProfit / revenue = 26.4%.

- Source: https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm (filed 2025-11-25); FY2025: grossProfit / revenue = 26.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); 10-year return on capital observations [[2016,0.1556067050794971],[2017,0.15947472629408588],[2018,0.12252153885105495],[2019,0.14409959542618508],[2020,0.1328693878849315],[2021,0.1261976740567828],[2022,0.10106074426737166],[2023,0.14654892485944043],[2024,0.18235690925951942],[2025,0.20358615011290349]]; median 0.14532426014281274. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 13.4% of cash earnings; earns 62.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2016: growth capex 0; upkeep 175692000; owner earnings 74182000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2017: growth capex 11419000; upkeep 80917000; owner earnings 200507000. Growth capex / owner earnings = 0.05695063015256325.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2018: growth capex 11009000; upkeep 116131000; cash acquisitions 771115000; owner earnings 180378000. Growth capex plus acquisitions / owner earnings = 4.336027675215381.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2019: growth capex 0; upkeep 99066000; owner earnings 302540000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2020: growth capex 0; upkeep 47087000; owner earnings 324466000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2021: growth capex 0; upkeep 37689000; owner earnings 300484000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2022: growth capex 0; upkeep 52868000; cash acquisitions 21549000; owner earnings 239458000. Growth capex plus acquisitions / owner earnings = 0.08999072906313424.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2023: growth capex 0; upkeep 76500000; cash acquisitions 878000; owner earnings 275611000. Growth capex plus acquisitions / owner earnings = 0.0031856493391047526.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); FY2024: growth capex 0; upkeep 96280000; cash acquisitions 0; owner earnings 392861000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm (filed 2025-11-25); FY2025: growth capex 17650000; upkeep 113278000; cash acquisitions 41678000; owner earnings 442111000. Growth capex plus acquisitions / owner earnings = 0.13419254440626902.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Incremental return on capital 0.6261861897963108, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Dividend observations: [[2016,26606000],[2017,29745000],[2018,34003000],[2019,39066000],[2020,37664000],[2021,36041000],[2022,44978000],[2023,51027000],[2024,58286000],[2025,64975000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm (filed 2025-11-25); FY2025: cash repurchases 172857000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WWD.US SharesStats.PercentInsiders = 0.252 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm (filed 2025-11-25); mpacted by the current inflationary environment. We have experienced shortages of certain parts and raw materials due to challenges in our supply chain. Our strategic investments to simplify and strengthen our supply chain may not be successful, and we may continue to experience shortages of parts or raw materials for the same or other reasons, such as the loss of a significant supplier, global supply chain constraints, high overall demand creating shortages in parts and supplies we use, financial distress, work stoppages, natural disasters, fluctuations in commodity prices, the imposition of tariffs or other duties, or production or distribution difficulties that may affect one or more of our suppliers. In some instances, we depend upon a single source of supply, manufacturing, or logistics support or participate in commodity markets that may be subject to allocations of limited supplies by suppliers. Some of our suppliers have experienced, and others may similarly experience, financial difficulties, inflationary pressures, production quality issues, labor instability, delivery delays or other performance problems, and, as a result, we have from time to time been, and may in the future be, unable to meet commitments to our customers and/or incur additional costs. In addition, quality and sourcing issues that our suppliers may experience can also adversely affect the quality and effectiveness of our products and services and may result in liability or reputational harm to us. Our customers rely on us to provide on-time delivery and have certain rights if our delivery standards are not maintained. Significant increases in our supply costs, including for raw materials that are subject to commodity price fluctuations, inflationary pressures, the imposition of tariffs, or a protracted interruption of supplies for any reason, have resulted in, and could result in further production and shipment delays, increased costs, and in lost revenue. Significant issues could damage our reputation and relationships with customers. Any of these events could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Our profitability may suffer if we are unable to manage our expenses in connection with sales increases, sales decreases, or if we experience change in product mix.

Some of our expenses are relatively fixed in relation to changes in sales volume and are difficult to adjust in the short term. Expenses driven by business activity other than sales level and other long-term expenditures, such as fixed manufacturing costs, capital expenditures, and research and development expenses may be difficult to reduce in a timely manner in response to a reduction in sales. In periods of rapid sales increases it may be difficult to quickly increase our production of finished goods because of our long manufacturing lead t

### What the price says

The price assumes cash profits grow 15.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-25); Ten-year compound average after fade. Initial solved rate 0.20906518459925294. Price 333.27; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.34480376755832487 → FY2025 7.193007288819471. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $58.98 per share

- 2016-11: $67.73 per share

- 2016-12: $69.05 per share

- 2017-01: $69.64 per share

- 2017-02: $70.45 per share

- 2017-03: $67.92 per share

- 2017-04: $67.67 per share

- 2017-05: $68.12 per share

- 2017-06: $67.58 per share

- 2017-07: $69.94 per share

- 2017-08: $70.21 per share

- 2017-09: $77.61 per share

- 2017-10: $77.33 per share

- 2017-11: $77.35 per share

- 2017-12: $76.54 per share

- 2018-01: $77.52 per share

- 2018-02: $70.83 per share

- 2018-03: $71.66 per share

- 2018-04: $71.94 per share

- 2018-05: $75.77 per share

- 2018-06: $76.86 per share

- 2018-07: $83.21 per share

- 2018-08: $80.56 per share

- 2018-09: $80.86 per share

- 2018-10: $73.64 per share

- 2018-11: $83.68 per share

- 2018-12: $74.29 per share

- 2019-01: $90.85 per share

- 2019-02: $96.34 per share

- 2019-03: $94.89 per share

- 2019-04: $108.90 per share

- 2019-05: $108.92 per share

- 2019-06: $113.16 per share

- 2019-07: $112.04 per share

- 2019-08: $107.85 per share

- 2019-09: $107.83 per share

- 2019-10: $106.66 per share

- 2019-11: $116.79 per share

- 2019-12: $118.44 per share

- 2020-01: $116.31 per share

- 2020-02: $103.20 per share

- 2020-03: $59.44 per share

- 2020-04: $60.56 per share

- 2020-05: $68.58 per share

- 2020-06: $77.55 per share

- 2020-07: $74.94 per share

- 2020-08: $85.69 per share

- 2020-09: $80.16 per share

- 2020-10: $79.55 per share

- 2020-11: $111.83 per share

- 2020-12: $121.53 per share

- 2021-01: $111.95 per share

- 2021-02: $114.22 per share

- 2021-03: $120.63 per share

- 2021-04: $125.01 per share

- 2021-05: $127.18 per share

- 2021-06: $122.88 per share

- 2021-07: $121.56 per share

- 2021-08: $120.94 per share

- 2021-09: $113.20 per share

- 2021-10: $112.95 per share

- 2021-11: $105.80 per share

- 2021-12: $109.46 per share

- 2022-01: $110.27 per share

- 2022-02: $124.63 per share

- 2022-03: $124.91 per share

- 2022-04: $110.48 per share

- 2022-05: $101.61 per share

- 2022-06: $92.49 per share

- 2022-07: $104.70 per share

- 2022-08: $93.07 per share

- 2022-09: $80.26 per share

- 2022-10: $91.70 per share

- 2022-11: $95.80 per share

- 2022-12: $96.61 per share

- 2023-01: $102.26 per share

- 2023-02: $99.00 per share

- 2023-03: $97.37 per share

- 2023-04: $96.02 per share

- 2023-05: $105.41 per share

- 2023-06: $118.91 per share

- 2023-07: $120.38 per share

- 2023-08: $129.37 per share

- 2023-09: $124.26 per share

- 2023-10: $124.70 per share

- 2023-11: $135.18 per share

- 2023-12: $136.13 per share

- 2024-01: $137.77 per share

- 2024-02: $141.49 per share

- 2024-03: $154.12 per share

- 2024-04: $162.36 per share

- 2024-05: $186.50 per share

- 2024-06: $174.38 per share

- 2024-07: $155.99 per share

- 2024-08: $166.65 per share

- 2024-09: $171.51 per share

- 2024-10: $164.09 per share

- 2024-11: $180.32 per share

- 2024-12: $166.42 per share

- 2025-01: $185.25 per share

- 2025-02: $189.00 per share

- 2025-03: $182.49 per share

- 2025-04: $187.57 per share

- 2025-05: $216.33 per share

- 2025-06: $245.09 per share

- 2025-07: $257.08 per share

- 2025-08: $246.82 per share

- 2025-09: $252.71 per share

- 2025-10: $262.11 per share

- 2025-11: $300.03 per share

- 2025-12: $302.32 per share

- 2026-01: $317.84 per share

- 2026-02: $386.76 per share

- 2026-03: $357.92 per share

- 2026-04: $362.99 per share

- 2026-05: $350.03 per share

- 2026-06: $425.44 per share

- 2026-07: $360.75 per share

- 2026-08: $339.82 per share

- 2026-09: $328.59 per share

- 2026-10: $333.27 per share

## Annual estimated value (USD per share)

- FY2016: low $13.96 per share, central $16.51 per share, high $19.11 per share

- FY2017: low $15.56 per share, central $19.76 per share, high $22.97 per share

- FY2018: low $16.37 per share, central $20.10 per share, high $23.34 per share

- FY2019: low $43.81 per share, central $56.63 per share, high $66.11 per share

- FY2020: low $46.50 per share, central $58.40 per share, high $67.93 per share

- FY2021: low $45.22 per share, central $50.60 per share, high $57.77 per share

- FY2022: low $43.90 per share, central $49.83 per share, high $57.71 per share

- FY2023: low $60.33 per share, central $75.02 per share, high $87.33 per share

- FY2024: low $80.65 per share, central $101.99 per share, high $118.58 per share

- FY2025: low $88.39 per share, central $112.46 per share, high $130.74 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/108312/000119312525296204/wwd-20250930.htm); period 2025-09-30, filed 2025-11-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.