Woodward
WWD
$343.26
+0.31%
Woodward, Inc. is an independent designer, manufacturer, and service provider of control solutions for the aerospace and industrial markets, offering products such as fuel pumps, actuators, valves, and fuel injection systems. As a key supplier to major aerospace OEMs and industrial customers, Woodward holds a distinct niche in high-performance energy control, benefiting from long-term program backlogs and aftermarket demand. The current investor narrative centers on robust aerospace recovery and defense spending, driving strong revenue growth, while the company also navigates supply chain challenges and margin pressures. Recent quarterly results have exceeded expectations, with revenue up 23.4% year-over-year, and the stock has seen significant appreciation, reflecting optimism about sustained growth in commercial aviation and defense budgets.…
WWD
Woodward
$343.26
WWD 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Woodward's 12-month outlook, with a consensus price target around $450.36 and implied upside of +31.2% versus the current price.
Average Target
$450.36
0 analysts
Implied Upside
+31.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$420 - $502
Analyst target range
The target price range spans from a low of $420.00 to a high of $502.00, representing a spread of $82.00, which indicates moderate uncertainty about the stock's future performance. The low target of $420 still implies a 13.3% upside, suggesting that even the most bearish analyst sees value, while the high target of $502 implies a 35.5% upside, reflecting expectations of continued strong growth and possibly multiple expansion. The wide range suggests that while the consensus is bullish, there is debate about the pace of growth and margin sustainability. Institutional ratings show no recent downgrades, with most firms maintaining Buy ratings, reinforcing the positive outlook.
Bulls vs Bears: WWD Investment Factors
Woodward presents a compelling growth story with strong revenue acceleration, solid profitability, and a bullish analyst consensus. However, the stock trades at a premium valuation, and recent price volatility highlights risks. The bull case is currently stronger, supported by robust end-market demand and a healthy balance sheet. The key tension is whether the company can sustain its growth trajectory to justify the premium multiple, or if margin pressures and cyclicality will lead to de-rating.
Bullish
- Strong Revenue Growth: Q2 FY2026 revenue surged 23.4% YoY to $1.09B, with sequential acceleration from $996M in Q1 and $995M in Q4 FY2025. This momentum is driven by robust aerospace demand and defense spending.
- Analyst Consensus Strong Buy: With a mean rating of 1.42 (Strong Buy) and an average target of $450.36, analysts see 21.5% upside from the current price of $370.56. The low target of $420 still implies 13.3% upside, indicating broad bullishness.
- Solid Profitability: Net margin improved to 12.4% (TTM) and operating margin reached 14.3%, reflecting efficient cost management. ROE stands at 17.2%, demonstrating strong capital efficiency.
- Healthy Balance Sheet: Debt-to-equity is low at 0.28, and the current ratio of 2.08 indicates ample liquidity. This financial flexibility supports growth investments and weathering downturns.
Bearish
- Elevated Valuation: Trailing PE of 34.1x and forward PE of 34.5x are at a premium to the broader market. The PEG ratio of 1.75 suggests the stock is not cheap relative to its growth rate.
- Recent Price Volatility: The stock has pulled back 17.8% from its 52-week high of $450.92, and the 1-month return is -7.8%. This volatility may unsettle short-term investors.
- Margin Pressure Risks: Gross margin of 26.8% (TTM) is relatively low for an aerospace supplier, and supply chain disruptions could further compress margins. Operating margin of 14.3% leaves limited buffer.
- Cyclical End-Market Exposure: Aerospace and industrial markets are cyclical; a downturn in commercial aviation or defense budgets could sharply reduce demand. Beta of 0.88 offers some protection but not immunity.
WWD Technical Analysis
Woodward's stock has demonstrated a strong long-term uptrend, with a 1-year price change of +51.05%, significantly outperforming the S&P 500's +20.37% over the same period. The current price of $370.56 sits at approximately 82% of its 52-week range (low $233.31, high $450.92), indicating the stock is trading closer to its highs but has pulled back from the peak. This positioning suggests that while momentum has been powerful, the recent correction may offer a potential entry point, though caution is warranted as the stock is still well above its lows.
Beta
0.88
0.88x market volatility
Max Drawdown
-21.6%
Largest decline past year
52-Week Range
$233-$451
Price range past year
Annual Return
+38.5%
Cumulative gain past year
| Period | WWD Return | S&P 500 |
|---|---|---|
| 1m | -15.2% | +2.5% |
| 3m | -2.3% | +2.7% |
| 6m | -12.9% | +11.1% |
| 1y | +38.5% | +20.5% |
| ytd | +10.4% | +12.3% |
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WWD Fundamental Analysis
Woodward's revenue trajectory is robust, with the most recent quarter (Q2 FY2026, ended March 31, 2026) reporting revenue of $1.09 billion, a 23.4% year-over-year increase. This growth is accelerating, as the prior quarter (Q1 FY2026) saw revenue of $996 million, and the quarter before that (Q4 FY2025) was $995 million, indicating a clear upward trend. The Aerospace segment, which generated $703 million in revenue, is the primary growth driver, benefiting from increased commercial aircraft production and defense spending, while the Industrial segment contributed $387 million. This strong top-line expansion underscores the company's ability to capitalize on favorable end-market conditions.
Quarterly Revenue
$1.1B
2026-03
Revenue YoY Growth
+23.4%
YoY Comparison
Gross Margin
29.0%
Latest Quarter
Free Cash Flow
$388559000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WWD Overvalued?
Given that Woodward has positive net income, the PE ratio is the most appropriate valuation metric. The trailing PE is 34.06x, while the forward PE is 34.53x, indicating that the market expects earnings to remain relatively stable in the near term. The gap between trailing and forward PE is minimal, suggesting that analysts anticipate modest earnings growth, which is consistent with the company's strong but mature industry position. This valuation is not cheap, but it reflects the company's solid profitability and growth prospects.
PE
34.1x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 21x~57x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
22.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a moderate debt-to-equity ratio of 0.28, which is manageable but could increase if the company takes on debt for acquisitions or buybacks. The current ratio of 2.08 indicates good liquidity, but the low gross margin of 26.8% leaves little room for cost inflation. Revenue concentration in aerospace (64% of Q2 revenue) exposes the company to sector-specific downturns. Free cash flow of $388.6M (TTM) is positive but volatile, and the payout ratio of 14.7% suggests limited dividend growth potential.
Market risks include a premium valuation with a forward PE of 34.5x, which could compress if growth decelerates. The stock's beta of 0.88 is below the market, but it is still sensitive to macro factors such as interest rates and defense spending. Competition from larger players like Honeywell and RTX could intensify, and regulatory changes in emissions standards could impact the industrial segment. The recent 17.8% drawdown from the 52-week high indicates that sentiment can shift quickly.
In a worst-case scenario, a prolonged aerospace downturn or a major supply chain disruption could cause revenue to decline, margins to compress, and the stock to fall to its 52-week low of $233.31, representing a -37.0% loss from the current price. This would be exacerbated if the company misses earnings estimates, leading to analyst downgrades and multiple compression. Investors should be prepared for potential drawdowns of this magnitude.