Recent News
On February 2, 2026 the company’s board declared a cash dividend of $0.32 per share, a 14% increase versus the prior quarter. On March 9, 2026 Woodward announced an agreement to acquire Valve Research & Manufacturing (VRM); the transaction closed on March 31, 2026 and VRM now operates as the Woodward Florida Campus. On April 22, 2026 Woodward and AAR signed a multi-year commercial distribution agreement to expand parts distribution into commercial aviation.
Technical Analysis
Directional indicators show weakening trend strength: ADX sits at 17.37, signaling no established trend; DI+ decreasing and DI– increasing indicate directional pressure favors the downside. This configuration raises the likelihood of sideways-to-lower near-term price action versus the current over-valued assessment.
MACD has peaked and reversed, with MACD at 0.30 below the signal line at 2.75; that peak-and-reversal pattern signals bearish momentum and reduces odds of sustained upward moves until momentum re-accelerates.
MRO reads positive at 15.01 with a peak-and-reversal profile, which indicates the price currently sits above a short-term modeled target and therefore faces pressure to correct toward target levels; that dynamic reinforces caution relative to the stated valuation.
RSI at 53.36 and trending down shows neutral-to-soft momentum; combined with the MACD and DI signals, RSI’s decline aligns with a consolidation bias rather than fresh breakout continuation.
Price sits below short-term averages: last close $366.63 trades under the 20-day average $384.36 and the 50-day average $378.57, while remaining above the 200-day average $303.04. Price also trades slightly below the one‑standard-deviation lower Bollinger band ($368.99), and recent volume (1,229,336) exceeds the 10-day average (785,785), indicating distribution on higher-than-normal activity. These short-term technicals support a near-term consolidation or pullback scenario relative to the current WMDST valuation.
Fundamental Analysis
Profitability and margin profile: operating income and EBIT support above‑peer margin levels. EBIT stands at $179,495,000 and EBIT margin at 18.01%, above the industry peer mean of 8.05% and the industry peer median of 11.00%; EBIT margin rose 21.89% year‑over‑year and 5.47% quarter‑over‑quarter, indicating recent margin expansion that underpins earnings quality versus peers.
Earnings: GAAP EPS of $2.17 beat the consensus estimate of $1.65 by $0.52, an EPS surprise of 31.52%. Forward EPS stands at $2.576 with a forward P/E of 109.67, implying elevated near-term expectations embedded in price compared with historical measures.
Valuation measures convey rich pricing: trailing P/E of 139.22 sits above the industry peer mean P/E of 102.01 and the median of 88.31; price-to-book at 6.99 sits slightly above the industry peer mean book ratio of 6.43; price-to-sales at 18.16 exceeds the industry peer mean of 14.99. Free cash flow totaled $70,308,000, producing a free cash flow yield of 0.39%, a low cash yield relative to market norms and inconsistent with an “over-valued” designation.
Balance sheet and cash generation: cash and short-term investments $454,245,000 with net debt $433,793,000 and an interest coverage ratio of 17.35, which supports financial flexibility despite a debt-to-EBITDA of 4.35. Current ratio at 2.05 and quick ratio 1.36 indicate healthy near-term liquidity; cash conversion cycle about 90.66 days. Dividend dynamics show board-declared $0.32 per share on February 2, 2026 while the dataset lists a dividend rate of $0.27987, a dividend payout ratio of 12.54%, and a dividend yield of 0.09%—the cash return profile remains modest relative to valuation.
Growth and efficiency: reported total revenue $996,454,000 with gross margin 29.32% and operating margin 15.999%. Revenue growth metrics present mixed intra-period signals: revenue growth at 0.12% while the quarter-over-quarter and year-over-year growth fields in the record show sharp negative short-term moves (QoQ -98.62%, YoY -101.25%); given those figures, revenue momentum shows meaningful variability that warrants monitoring alongside the company’s recent M&A and distribution activity. Return metrics show return on equity 5.17% and return on assets 2.86%, improving year-over-year but remaining modest versus higher valuation multiples.
Valuation summary: the current valuation as determined by WMDST registers as over‑valued. High P/E and P/S ratios, minimal free cash flow yield, and mixed top-line growth offset margin strength and a recent EPS beat; recent acquisitions and distribution agreements support longer-term growth but do not materially compress the present rich multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-02 |
| NEXT REPORT DATE: | 2026-05-04 |
| CASH FLOW | Begin Period Cash Flow | $ 327.4 M |
| Operating Cash Flow | $ 114.4 M | |
| Capital Expenditures | $ -44.13 M | |
| Change In Working Capital | $ -130.95 M | |
| Dividends Paid | $ -16.76 M | |
| Cash Flow Delta | $ 126.8 M | |
| End Period Cash Flow | $ 454.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 996.5 M | |
| Forward Revenue | $ 286.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 704.3 M | |
| Depreciation | $ 21.7 M | |
| Depreciation and Amortization | $ 29.0 M | |
| Research and Development | $ 37.8 M | |
| Total Operating Expenses | $ 837.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 292.2 M | |
| EBITDA | $ 208.5 M | |
| EBIT | $ 179.5 M | |
| Operating Income | $ 159.4 M | |
| Interest Income | $ 701.0 K | |
| Interest Expense | $ 10.3 M | |
| Net Interest Income | $ -9.64 M | |
| Income Before Tax | $ 169.2 M | |
| Tax Provision | $ 35.4 M | |
| Tax Rate | 20.947 % | |
| Net Income | $ 133.7 M | |
| Net Income From Continuing Operations | $ 133.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.65 | |
| EPS Actual | $ 2.17 | |
| EPS Difference | $ 0.52 | |
| EPS Surprise | 31.515 % | |
| Forward EPS | $ 2.58 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.7 B | |
| Intangible Assets | $ 1.3 B | |
| Net Tangible Assets | $ 1.3 B | |
| Total Current Assets | $ 2.0 B | |
| Cash and Short-Term Investments | $ 454.2 M | |
| Cash | $ 454.2 M | |
| Net Receivables | $ 413.8 M | |
| Inventory | $ 689.2 M | |
| Long-Term Investments | $ 379.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 270.0 M | |
| Short-Term Debt | $ 431.0 M | |
| Total Current Liabilities | $ 999.1 M | |
| Net Debt | $ 433.8 M | |
| Total Debt | $ 907.1 M | |
| Total Liabilities | $ 2.1 B | |
| EQUITY | ||
| Total Equity | $ 2.6 B | |
| Retained Earnings | $ 3.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 43.20 | |
| Shares Outstanding | 59.786 M | |
| Revenue Per-Share | $ 16.64 | |
| VALUATION | Market Capitalization | $ 18.1 B |
| Enterprise Value | $ 18.5 B | |
| Enterprise Multiple | 88.948 | |
| Enterprise Multiple QoQ | 13.135 % | |
| Enterprise Multiple YoY | 18.64 % | |
| Enterprise Multiple IPRWA | high: 174.07 WWD: 88.948 mean: 69.681 median: 67.724 low: -202.064 |
|
| EV/R | 18.615 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.83 | |
| Asset To Liability | 2.205 | |
| Debt To Capital | 0.26 | |
| Debt To Assets | 0.192 | |
| Debt To Assets QoQ | 22.818 % | |
| Debt To Assets YoY | 95.81 % | |
| Debt To Assets IPRWA | high: 0.741 mean: 0.275 median: 0.27 WWD: 0.192 low: 0.0 |
|
| Debt To Equity | 0.351 | |
| Debt To Equity QoQ | 24.544 % | |
| Debt To Equity YoY | 84.788 % | |
| Debt To Equity IPRWA | high: 2.558 mean: 0.792 median: 0.6 WWD: 0.351 low: -0.715 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.994 | |
| Price To Book QoQ | 17.588 % | |
| Price To Book YoY | 46.865 % | |
| Price To Book IPRWA | high: 17.452 WWD: 6.994 mean: 6.432 median: 3.761 low: -8.298 |
|
| Price To Earnings (P/E) | 139.216 | |
| Price To Earnings QoQ | 14.184 % | |
| Price To Earnings YoY | 6.073 % | |
| Price To Earnings IPRWA | high: 235.389 WWD: 139.216 mean: 102.011 median: 88.312 low: -90.789 |
|
| PE/G Ratio | 36.368 | |
| Price To Sales (P/S) | 18.16 | |
| Price To Sales QoQ | 18.413 % | |
| Price To Sales YoY | 33.439 % | |
| Price To Sales IPRWA | high: 91.005 WWD: 18.16 mean: 14.992 median: 10.063 low: 1.21 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 109.667 | |
| Forward PE/G | 28.649 | |
| Forward P/S | 63.589 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 46.801 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.213 | |
| Asset Turnover Ratio QoQ | -0.113 % | |
| Asset Turnover Ratio YoY | 19.126 % | |
| Asset Turnover Ratio IPRWA | high: 0.442 WWD: 0.213 mean: 0.169 median: 0.143 low: 0.0 |
|
| Receivables Turnover | 2.236 | |
| Receivables Turnover Ratio QoQ | 7.026 % | |
| Receivables Turnover Ratio YoY | 19.277 % | |
| Receivables Turnover Ratio IPRWA | high: 6.976 mean: 2.917 WWD: 2.236 median: 1.958 low: 0.277 |
|
| Inventory Turnover | 1.048 | |
| Inventory Turnover Ratio QoQ | -4.234 % | |
| Inventory Turnover Ratio YoY | 11.552 % | |
| Inventory Turnover Ratio IPRWA | high: 4.95 mean: 1.386 WWD: 1.048 median: 0.877 low: 0.041 |
|
| Days Sales Outstanding (DSO) | 40.804 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 90.66 | |
| Cash Conversion Cycle Days QoQ | -3.785 % | |
| Cash Conversion Cycle Days YoY | -9.468 % | |
| Cash Conversion Cycle Days IPRWA | high: 441.121 mean: 101.307 WWD: 90.66 median: 79.02 low: -120.322 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.949 | |
| CapEx To Revenue | -0.044 | |
| CapEx To Depreciation | -2.034 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.0 B | |
| Net Invested Capital | $ 3.5 B | |
| Invested Capital | $ 3.5 B | |
| Net Tangible Assets | $ 1.3 B | |
| Net Working Capital | $ 1.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.455 | |
| Current Ratio | 2.051 | |
| Current Ratio QoQ | -1.244 % | |
| Current Ratio YoY | 8.792 % | |
| Current Ratio IPRWA | high: 10.519 WWD: 2.051 mean: 1.609 median: 1.189 low: 0.089 |
|
| Quick Ratio | 1.361 | |
| Quick Ratio QoQ | 0.426 % | |
| Quick Ratio YoY | 13.964 % | |
| Quick Ratio IPRWA | high: 6.782 WWD: 1.361 mean: 1.101 median: 0.936 low: 0.333 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.35 | |
| Cost Of Debt | 1.004 % | |
| Interest Coverage Ratio | 17.353 | |
| Interest Coverage Ratio QoQ | 4.381 % | |
| Interest Coverage Ratio YoY | 87.528 % | |
| Interest Coverage Ratio IPRWA | high: 68.404 WWD: 17.353 mean: 8.076 median: 7.208 low: -21.485 |
|
| Operating Cash Flow Ratio | 0.172 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 35.553 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 7.977 | |
| Dividend Payout Ratio | 0.125 | |
| Dividend Rate | $ 0.28 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.241 % | |
| Revenue Growth | 0.12 % | |
| Revenue Growth QoQ | -98.624 % | |
| Revenue Growth YoY | -101.254 % | |
| Revenue Growth IPRWA | high: 55.128 % median: 7.83 % mean: 2.772 % WWD: 0.12 % low: -54.832 % |
|
| Earnings Growth | 3.828 % | |
| Earnings Growth QoQ | -79.584 % | |
| Earnings Growth YoY | -189.965 % | |
| Earnings Growth IPRWA | high: 53.061 % WWD: 3.828 % mean: -0.117 % median: -5.737 % low: -70.833 % |
|
| MARGINS | ||
| Gross Margin | 29.32 % | |
| Gross Margin QoQ | 5.195 % | |
| Gross Margin YoY | 19.474 % | |
| Gross Margin IPRWA | high: 87.079 % WWD: 29.32 % mean: 24.515 % median: 19.604 % low: 5.405 % |
|
| EBIT Margin | 18.013 % | |
| EBIT Margin QoQ | 5.469 % | |
| EBIT Margin YoY | 21.891 % | |
| EBIT Margin IPRWA | high: 45.821 % WWD: 18.013 % median: 11.003 % mean: 8.053 % low: -670.567 % |
|
| Return On Sales (ROS) | 15.999 % | |
| Return On Sales QoQ | 5.611 % | |
| Return On Sales YoY | 8.262 % | |
| Return On Sales IPRWA | high: 45.821 % WWD: 15.999 % median: 10.71 % mean: 10.397 % low: -222.37 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 70.3 M | |
| Free Cash Flow Yield | 0.389 % | |
| Free Cash Flow Yield QoQ | -67.173 % | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | high: 3.808 % mean: 1.255 % median: 1.015 % WWD: 0.389 % low: -15.127 % |
|
| Free Cash Growth | -61.14 % | |
| Free Cash Growth QoQ | -174.027 % | |
| Free Cash Growth YoY | -38.366 % | |
| Free Cash Growth IPRWA | high: 388.312 % mean: 32.887 % median: 11.192 % WWD: -61.14 % low: -329.442 % |
|
| Free Cash To Net Income | 0.526 | |
| Cash Flow Margin | 17.28 % | |
| Cash Flow To Earnings | 1.288 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.856 % | |
| Return On Assets QoQ | -3.055 % | |
| Return On Assets YoY | 41.807 % | |
| Return On Assets IPRWA | high: 6.472 % WWD: 2.856 % median: 1.907 % mean: 1.693 % low: -22.994 % |
|
| Return On Capital Employed (ROCE) | 4.806 % | |
| Return On Equity (ROE) | 0.052 | |
| Return On Equity QoQ | -3.636 % | |
| Return On Equity YoY | 31.034 % | |
| Return On Equity IPRWA | high: 0.211 WWD: 0.052 mean: 0.039 median: 0.025 low: -0.516 |
|
| DuPont ROE | 5.189 % | |
| Return On Invested Capital (ROIC) | 4.083 % | |
| Return On Invested Capital QoQ | -8.862 % | |
| Return On Invested Capital YoY | -94.344 % | |
| Return On Invested Capital IPRWA | high: 9.971 % WWD: 4.083 % mean: 2.797 % median: 2.546 % low: -7.876 % |
|