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Woodward, Inc. (WWD)

Company Dividend Discount ModelIndustry: Aerospace & DefenseSector: Industrials

Valuation Snapshot

Stable Growth$168.92 - $448.10$258.30
Multi-Stage$114.33 - $124.99$119.56
Blended Fair Value$188.93
Current Price$252.71
Upside-25.24%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS11.52%10.18%1.060.950.830.730.590.610.640.550.480.43
YoY Growth--11.48%14.23%13.45%24.80%-4.31%-3.59%14.89%14.32%11.80%7.95%
Dividend Yield--0.42%0.57%0.61%0.76%0.54%0.50%0.54%0.75%0.63%0.63%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)442.11
(-) Cash Dividends Paid (M)64.98
(=) Cash Retained (M)377.14
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)88.4255.2633.16
Cash Retained (M)377.14377.14377.14
(-) Cash Required (M)-88.42-55.26-33.16
(=) Excess Retained (M)288.71321.87343.98
(/) Shares Outstanding (M)61.3961.3961.39
(=) Excess Retained per Share4.705.245.60
LTM Dividend per Share1.061.061.06
(+) Excess Retained per Share4.705.245.60
(=) Adjusted Dividend5.766.306.66
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$168.92$258.30$448.10
Upside / Downside-33.16%2.21%77.32%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)442.11470.85501.45534.05568.76605.73623.90
Payout Ratio14.70%29.76%44.82%59.88%74.94%90.00%92.50%
Projected Dividends (M)64.98140.11224.74319.78426.23545.16577.11

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)127.22128.43129.63
Year 2 PV (M)185.29188.82192.38
Year 3 PV (M)239.39246.26253.27
Year 4 PV (M)289.72300.87312.33
Year 5 PV (M)336.47352.73369.60
PV of Terminal Value (M)5,841.196,123.326,416.25
Equity Value (M)7,019.297,340.427,673.46
Shares Outstanding (M)61.3961.3961.39
Fair Value$114.33$119.56$124.99
Upside / Downside-54.76%-52.69%-50.54%

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