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Curtiss-Wright (CW)
NYSE:CW
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Curtiss-Wright
(NYSE:CW)67Neutral
Positive Factors
Growth Investments
Prospects for the company are very good with strong market tailwinds in defense and nuclear and returns from growth investments materializing, which should drive compounding revenue growth for the foreseeable future.
Negative Factors
Stock Performance
Both the 4Q24 print and the 2025 guidance came in ahead of sell-side consensus which wasn't enough for investors with the stock down 1% yesterday and down another 4% today (vs. S&P500 up 1% and flat).
Valuation Concerns
Valuation keeps us on the sidelines for now. Significant multiple expansion may be normalizing as investors realize that this is going to take a while.
Curtiss-Wright (CW) vs. S&P 500 (SPY)
Market Cap
$12.20B
Dividend Yield0.26%
Average Volume (3M)364.60K
Price to Earnings (P/E)30.7
Beta (1Y)1.02
Revenue Growth9.69%
EPS Growth14.65%
CountryUS
Employees8,800
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)10.55
Shares Outstanding37,658,817
10 Day Avg. Volume401,953
30 Day Avg. Volume364,602
Financial Highlights & Ratios
PEG Ratio2.09
Price to Book (P/B)N/A
Price to Sales (P/S)3.91
Price to Cash Flow (P/CF)10.10
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$395.33Price Target Upside26.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Curtiss-Wright Business Overview & Revenue Model
Company DescriptionCurtiss-Wright Corporation is a diversified, global company that delivers highly engineered, critical function products and services to the aerospace, defense, general industrial, and power generation markets. The company operates through three main segments: Commercial/Industrial, Defense, and Power. Curtiss-Wright's core offerings include advanced technologies for motion control, engineered systems, and metal treatment services, serving a wide range of applications across its key sectors.
How the Company Makes MoneyCurtiss-Wright makes money through a multi-faceted revenue model that includes the sale of high-performance, engineered products and services across its three major segments. The Commercial/Industrial segment generates revenue by providing motion control solutions and specialized sensors for industries such as automotive, aerospace, and industrial automation. The Defense segment earns revenue by supplying integrated electronic systems, control systems, and other critical components for military applications. The Power segment contributes to earnings by offering products and services for nuclear and fossil power generation, including valves, pumps, and control technologies. Significant partnerships with major defense contractors and industrial companies, as well as government contracts, further bolster Curtiss-Wright's revenue streams.
Curtiss-Wright Financial Statement Overview
Summary
Curtiss-Wright shows strong financial performance with consistent revenue growth, robust profit margins, and effective cash flow generation. The company's balance sheet is healthy, but rising debt levels require monitoring.Income Statement
Curtiss-Wright shows a robust financial performance with a consistent increase in total revenue from $2.39 billion in 2020 to $3.12 billion in 2024. The gross profit margin improved to 36.95% in 2024 from 34.64% in 2020, indicating effective cost management. The net profit margin also increased to 12.97% in 2024 from 8.42% in 2020, reflecting enhanced profitability. EBIT and EBITDA margins remain strong, demonstrating operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reflects solid financial health with a Debt-to-Equity ratio of 0.49 in 2024, indicating moderate leverage. The Return on Equity (ROE) improved to 16.53% in 2024, suggesting effective utilization of equity. The equity ratio of 49.14% signifies a strong equity base, although the increase in total debt from $905.76 million in 2019 to $1.20 billion in 2024 warrants attention.75
Positive
Cash Flow
Curtiss-Wright exhibits impressive cash flow metrics with a substantial increase in free cash flow from $213.68 million in 2020 to $483.30 million in 2024. The operating cash flow to net income ratio remains strong, indicating efficient cash generation. The free cash flow to net income ratio also reflects solid cash conversion, underscoring the company's capability to generate cash effectively.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.12B | 2.85B | 2.56B | 2.51B | 2.39B | Gross Profit |
| 1.15B | 1.07B | 954.61M | 933.36M | 841.23M | EBIT |
| 528.60M | 484.60M | 328.80M | 299.45M | 288.85M | EBITDA |
| 674.59M | 630.63M | 548.20M | 509.13M | 414.50M | Net Income Common Stockholders |
| 404.98M | 354.51M | 294.35M | 262.83M | 201.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 385.04M | 406.87M | 256.97M | 171.00M | 198.25M | Total Assets |
| 4.99B | 4.62B | 4.45B | 4.10B | 4.02B | Total Debt |
| 1.20B | 1.20B | 1.39B | 1.18B | 1.19B | Net Debt |
| 812.08M | 788.33M | 1.13B | 1.01B | 993.11M | Total Liabilities |
| 2.54B | 2.29B | 2.46B | 2.28B | 2.23B | Stockholders Equity |
| 2.45B | 2.33B | 1.99B | 1.83B | 1.79B |
| Cash Flow | Free Cash Flow | |||
| 483.30M | 403.42M | 256.56M | 346.56M | 213.68M | Operating Cash Flow |
| 544.27M | 448.09M | 294.78M | 387.67M | 261.18M | Investing Cash Flow |
| -283.31M | -35.52M | -325.87M | -42.40M | -532.53M | Financing Cash Flow |
| -271.49M | -273.40M | 129.43M | -369.13M | 82.08M |
Curtiss-Wright Technical Analysis
Negative
313.65
Price Trends
345.37
Negative
354.37
Negative
323.52
Negative
Market Momentum
-9.48
Positive
38.82
Neutral
45.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CW, the sentiment is Negative. The current price of 313.65 is below the 20-day moving average (MA) of 328.51, below the 50-day MA of 345.37, and below the 200-day MA of 323.52, indicating a bearish trend. The MACD of -9.48 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 45.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CW.
Curtiss-Wright Risk Analysis
Curtiss-Wright disclosed 34 risk factors in its most recent earnings report. Curtiss-Wright reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Curtiss-Wright Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $68.64B | 16.73 | 27.75% | 1.70% | 4.44% | 110.33% | |
75 Outperform | $71.09B | 19.29 | 17.44% | 2.16% | 12.88% | 13.78% | |
71 Outperform | $39.65B | 26.73 | 7.85% | 2.20% | 9.82% | 22.33% | |
67 Neutral | $12.20B | 30.69 | 16.95% | 0.26% | 9.69% | 14.65% | |
64 Neutral | $13.14B | 16.71 | 11.63% | 0.11% | 0.14% | -5.38% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
37 Underperform | $119.19B | ― | -162.23% | ― | -14.49% | -399.90% |
* Industrials Sector Average
Performance Comparison
CW
Curtiss-Wright
313.65
72.42
30.02%
BA
Boeing
158.43
-40.06
-20.18%
GD
General Dynamics
264.55
-2.37
-0.89%
LHX
L3Harris Technologies
213.79
2.35
1.11%
NOC
Northrop Grumman
475.20
23.47
5.20%
TXT
Textron
73.37
-18.67
-20.28%
Curtiss-Wright Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -8.27% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Curtiss-Wright's earnings call highlighted strong financial performance in 2024, driven by record-breaking results and strategic acquisitions. However, challenges in specific segments like Defense Electronics and General Industrial, as well as mixed results in Naval & Power, indicate areas needing improvement. The overall sentiment is positive, with a confident outlook for 2025.Highlights
Record Financial Results in 2024
Curtiss-Wright achieved record financial results in 2024, with double-digit growth in sales and operating income, a 16% increase in diluted earnings per share, and a record adjusted free cash flow of $483 million.
Strong Order Book and Backlog
The company reported a 20% year-over-year increase in orders, reaching a record $3.7 billion, with a total backlog up 20% to more than $3.4 billion.
Successful Acquisitions and Share Repurchases
In 2024, Curtiss-Wright expanded its commercial nuclear portfolio with the acquisitions of WSC and Ultra Energy and repurchased $250 million in stock, including a $100 million accelerated repurchase in December.
Positive 2025 Financial Outlook
Curtiss-Wright projects mid-single-digit organic sales growth in 2025, with operating income growth expected to exceed sales growth and diluted EPS anticipated to grow 11% to 14%.
Lowlights
Underperformance in Defense Electronics
The Defense Electronics segment experienced year-over-year and sequential revenue declines due to under absorption, timing issues, and unfavorable mix.
Challenges in General Industrial Market
The General Industrial market faced lower global off-highway and specialty industrial vehicle sales as customers reduced inventory levels.
Mixed Performance in Naval & Power Segment
Despite sales growth, profitability in the Naval & Power segment was impacted by unfavorable mix and lower international aircraft arresting systems revenues.
Company Guidance
During the Curtiss-Wright Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided a comprehensive financial outlook for 2025, projecting a mid-single-digit organic sales growth and total growth of 7% to 8%, including acquisitions. Operating income is expected to grow 10% to 12%, with operating margin expanding by 40 to 60 basis points to reach an 18% midpoint. Diluted earnings per share (EPS) is anticipated to increase by 11% to 14%, ranging from $12.10 to $12.40. The company also forecasts a strong free cash flow between $485 million and $505 million, with a conversion rate exceeding 105%. The order book for 2024 showed a 20% increase, reaching a record $3.7 billion, driven by strong demand in key segments like Defense Electronics and Naval & Power.Curtiss-Wright Corporate Events
Executive/Board Changes
Curtiss-Wright Announces Leadership Transition with McDonald
Neutral
Nov 14, 2024
Curtiss-Wright Corporation has announced the retirement of Paul J. Ferdenzi, its long-serving Vice President, General Counsel, and Corporate Secretary, who will be succeeded by George P. McDonald. McDonald, who has been with the company since 1999, will assume the new role effective immediately, reporting to CEO Lynn M. Bamford. This leadership transition is part of a formal succession plan, ensuring continuity in the company’s executive team. The company praised Ferdenzi’s 25-year tenure for his leadership and significant contributions to Curtiss-Wright’s legal and corporate endeavors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.