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If You Invested $1000 in Woodward a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Woodward (WWD - Free Report) ten years ago? It may not have been easy to hold on to WWD for all that time, but if you did, how much would your investment be worth today?

Woodward's Business In-Depth

With that in mind, let's take a look at Woodward's main business drivers.

Headquartered in Fort Collins, CO, Woodward, Inc is an independent designer, manufacturer and service provider of energy control and optimization solutions for the aerospace and industrial markets.

Apart from serving original equipment manufacturers (OEMs), it also engages in aftermarket repairs, replacements and other service support operations for installed products.

Woodward serves the aerospace and energy markets through two reportable segments: Aerospace and Industrial.

The Aerospace segment’s products include metering units, actuators, air valves, fuel pumps, fuel nozzles, specialty valves, , and thrust reverser actuation systems for turbine engines and nacelles, flight deck controls, actuators, servocontrols, motors, and sensors for aircraft.

These segment’s products are utilized for commercial and private aircraft and rotorcraft. These are also widely deployed on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. This segment generated revenues of $518 million in third-quarter fiscal 2024, representing 61% of total revenues.

The company faces tough competition from companies like Honeywell, Moog, Eaton, Parker Hannifin, and RTX Corporation in this space.

The Industrial segment’s products portfolio includes solenoids, actuators, valves, pumps, fuel injection systems, ignition systems, control systems, electronics and software, and sensors.

The products are widely used in steam turbines, industrial gas turbines (like heavy frame, aeroderivative and small industrial gas turbines), compressors, and reciprocating engines (like low speed, medium speed, and high-speed engines, that operate on variety of fuels). Segmental revenues of $330 million in third-quarter fiscal 2024 represented 38.9% of total revenues.

Woodward’s primary competitors in this space include Heinzmann GmbH & Co., Emerson, EControls, Hoerbiger, Meggitt, Robert Bosch AG, and Triconix.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Woodward ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in November 2014 would be worth $3,333.72, or a gain of 233.37%, as of November 7, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 191.90% and the price of gold went up 117.49% over the same time frame.

Going forward, analysts are expecting more upside for WWD.

Continued demand across end markets and robust aerospace aftermarket sales cushion Woodward’s performance. The Aerospace unit gains from price realization, higher traffic and increased aircraft utilization. The Industrial unit is driven by the continued requirement for backup power for data centers. However, flat China on-highway sales dampened Industrial unit growth in the fiscal third quarter. It expects further decline for China on-highway sales in the fiscal fourth quarter, with sales in the range of $10-$15 million. Lower China on-highway deliveries and supply chain constraints, including delayed supplier deliveries and customer pushouts, are woes. As a result, management now expects Industrial unit revenues to grow in the range of 11-13% for fiscal 2024. Our estimate for the metric is pegged at $1,289.2 million for the fiscal year.
 

Shares have gained 6.51% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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