
433.75 USD (+33.8%)
12 analysts
What does it do?
Woodward, Inc. designs and manufactures precision control systems and components for the aerospace (aircraft engines) and defense industries, as well as for industrial and power generation applications.
Key points
from its scores- ✓Good share-price trend8.6
- ✓Strong growth8.4
- ✓Very solid balance sheet7.2
- ✕Demanding valuation2.8
- ✕Little or no dividend3.5
AI analysis
bottom line, main risk, context and newsStrong growth and business quality justify the premium, but the demanding valuation and low free cash flow conversion limit attractiveness at these prices.
Woodward shows exceptional growth (revenue +21.2%, earnings +36.4%) with solid financial health (Net Debt/EBITDA of 1.13) and notable moat quality (ROE 22.34%, ROIC 19.16%), although its valuation is demanding (P/E 36.07, EV/EBITDA 25.57) and free cash flow conversion is weak (23.31%).
The demanding valuation (P/E 36.07) leaves little room for error if growth decelerates or if free cash flow conversion (23.31%) does not improve, especially in a rising rate environment that pressures long-duration multiples.
Context and risks
Woodward has no material exposure to current macro factors. Its business of aerospace and defense components does not depend on oil, European gas, or shipping routes, and its balance sheet (Net Debt/EBITDA of 1.13) is not pressured by the rise in rates. There are no recent relevant news to adjust.
Is Woodward stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 59% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 36.1 | 25.4 | +42% |
| EV / EBITDA | 25.6 | 14.5 | +76% |
| Price / book | 7.7 | 4.1 | +89% |
| Price / sales | 4.6 | 2.1 | +122% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.8 out of 10 (median for Industrials: 5.0).
Average analyst target: 433.75 USD, +33.8% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 5.9 (sector 5.8), Growth 8.4 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 36.1
- Forward P/E
- 30.2
- EV / EBITDA
- 25.6
- Price / book
- 7.7
- Price / sales
- 4.6
- PEG
- 2.15
- Market cap
- 19.1B USD
- Enterprise value
- 20.5B USD
Profitability
- ROE
- 22.3%
- ROA
- 8.6%
- ROIC (approx.)
- 19.2%
- Gross margin
- 29.6%
- Operating margin
- 17.8%
- Net margin
- 13.2%
- Free cash flow
- 187.2M USD
- FCF yield
- 1.0%
- Cash conversion
- 23%
Solvency
- Total debt
- 1.4B USD
- Net debt
- 909.0M USD
- Cash
- 474.9M USD
- EBITDA
- 803.3M USD
- Net debt / EBITDA
- 1.13
- Debt / equity
- 55.94
- Current ratio
- 1.65
- Quick ratio
- 1.08
Growth
- Revenue growth
- +21.2%
- Earnings growth
- +36.4%
- EPS (TTM)
- 8.99 USD
- EPS (forward)
- 10.74 USD
Dividend
- Dividend yield
- 0.4%
- Payout
- 13.4%
Risk and market
- Beta
- 0.86
- Analyst consensus
- Buy (12)
- Target price
- 433.75 USD
- 52-week range
- 244.69 – 450.92
Recent news
All WWD news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Woodward
Is Woodward stock cheap or expensive?
On P/E and EV / EBITDA, it trades 59% above the Industrials median on average. Valuation score: 2.8 out of 10 (median for Industrials: 5.0). Average analyst target: 433.75 USD, +33.8% versus the price. This is not investment advice.
What score does Woodward get on MeridIAn Screener?
It scores 5.8 out of 10, rank 1,211 of 2,130 (better than 43% of the companies analysed). Its strongest category is Momentum (8.6) and its weakest, Valuation (2.8). Analysis of 08/10/2026.
What is Woodward's P/E ratio?
Its P/E is 36.1: the share price equals 36.1 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 30.2.
How much is Woodward worth on the stock market?
Its market capitalisation is 19.1B USD and its enterprise value, debt included, is 20.5B USD.
How much debt does Woodward have?
Its net debt (debt minus cash) is 909.0M USD. That is 1.13 times its EBITDA; the Industrials median is 1.58.
Does Woodward pay a dividend?
Yes: its dividend yield is 0.39% and it pays out 13% of its earnings.
How has Woodward stock performed over the last year?
It has risen 31.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 244.69 and 450.92 USD. Past performance does not guarantee future results.
What do analysts think of Woodward?
12 analysts cover it; their average recommendation is “Buy” and their average target is 433.75 USD (+33.8% versus the price). It is an estimate, not market data.
