Misc Industrial & Commercial Machinery & Equipment
Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services to the aerospace, defense, general industrial, and power generation markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as electronic throttle control devices, joysticks, and transmission shifters; sensors, controls and electro-mechanical actuation components used in commercial and military aircraft; and surface technology services, including shot peening, laser peening, and coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, and tactical communications solutions; turret aiming and stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers hardware, pumps, pump seals, control rod drive mechanisms, valves, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing products for nuclear power plants and nuclear equipment manufacturers; and naval propulsion and auxiliary equipment, including coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems, as well as ship repair and maintenance services primarily to the U.S. navy. Curtiss-Wright Corporation was founded in 1929 and is headquartered in Davidson, North Carolina.
Discounted Cash Flow Valuation of Curtiss Wright Corp
Growth
%
%
Discount
%
%
Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $448M | $469.2M | $491.4M | $514.7M | $539.1M | $564.7M | $591.4M | $619.4M | $648.8M | $679.5M | $711.7M | $7.117B |
DCF | $408M | $371.6M | $338.4M | $308.2M | $280.7M | $255.7M | $232.9M | $212.1M | $193.2M | $175.9M | $1.759B | |
Value | $4.536B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 6.6% | 8.9% | 9.5% | 11% | 12% | 8.4% | 11% | 12% | 12% | 13% |
ROA | 10% | 10% | 11% | 12% | 11% | 7.4% | 9.3% | 9.5% | 10% | 11% |
ROE | 12% | 15% | 14% | 18% | 17% | 11% | 15% | 15% | 15% | 16% |
The average Net Margin over the past 5 years is +11.14%.
The trend of Net Margin over the past 5 years is +0.14%.
The average ROA over the past 5 years is +10.02%.
The trend of ROA over the past 5 years is -0.32%.
The average ROE over the past 5 years is +15.21%.
The trend of ROE over the past 5 years is -0.52%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 7.53 | 2.97 | 2.42 | 2.70 | 2.16 | 5.42 | 3.03 | 5.68 | 2.60 | 2.54 |
Debt Equity | 0.76 | 0.87 | 0.53 | 0.50 | 0.43 | 0.65 | 0.58 | 0.73 | 0.45 | 0.48 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 100% | 100% | 76% | 100% | 100% | 100% | 76% |
The Debt/FCF trailing twelve month is 2.54.
The trend of Debt/FCF over the past 5 years is 0.22.
Graham’s Stability measure stands at 0.76.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 4.4% | 3.4% | 6% | 11% | 0.92% |
Net Income | 9.5% | 5.2% | 21% | 20% | -1.9% |
Stockholders Equity | 8.8% | 8.8% | 9.2% | 17% | 1.9% |
FCF | 0.99% | 7.4% | 24% | 57% | -1.8% |
The Revenue CAGR over the past 5 years is +3.36%.
The trend of Revenue growth rate over the past 5 years is +0.92%.
The Earnings CAGR over the past 5 years is +5.15%.
The trend of Earnings growth rate over the past 5 years is -1.91%.
The Equity CAGR over the past 5 years is +8.75%.
The trend of Equity growth rate over the past 5 years is +1.91%.
The FCF CAGR over the past 5 years is +7.36%.
The trend of FCF growth rate over the past 5 years is -1.8%.