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Sergey Savastiouk's Avatar
published in Blogs
Jan 13, 2020

Woodward (WWD, $121.96) to merge with Hexcel to create $6.4 billion company

Aerospace parts maker Woodward  is planning to merge with Hexcel (which makes lightweight materials for aircraft, space and defense equipment).

Under the all-stock merger, current Woodward shareholders will own about 55% of the new company called Woodward Hexcel. Hexcel shareholders will own about 45%. Hexcel shareholders will get 0.625 shares of Woodward common stock for each share of Hexcel common stock.  Woodward shareholders will get to have the same number of common stock shares in the newly combined company as before.  The combined entity is valued at $6.4 billion.

Woodward will be raising its quarterly cash dividend to 28 cents a share, as part of the deal.

The combined company – set to be among the aerospace industry’s largest suppliers - will generate estimated net revenues of $5.3 billion (based on last year’s revenues), while  having around 16,000 employees, and operations in 14 countries.   Woodward Hexcel expects to save around $125 million in annual cost synergies by its second fiscal year.

The new company plans to invest $250 million on research and development in its first year.

 

Related Ticker: WWD

WWD in downward trend: price may decline as a result of having broken its higher Bollinger Band on June 26, 2025

WWD broke above its upper Bollinger Band on June 26, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 42 similar instances where the stock broke above the upper band. In of the 42 cases the stock fell afterwards. This puts the odds of success at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.

The Moving Average Convergence Divergence Histogram (MACD) for WWD turned negative on June 13, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where WWD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Bullish Trend Analysis

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WWD advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 262 cases where WWD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock better than average.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WWD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.423) is normal, around the industry mean (9.986). P/E Ratio (40.766) is within average values for comparable stocks, (62.376). Projected Growth (PEG Ratio) (2.161) is also within normal values, averaging (2.359). Dividend Yield (0.004) settles around the average of (0.018) among similar stocks. P/S Ratio (4.632) is also within normal values, averaging (9.333).

Notable companies

The most notable companies in this group are GE Aerospace (NYSE:GE), Boeing Company (NYSE:BA), Lockheed Martin Corp (NYSE:LMT), Northrop Grumman Corp (NYSE:NOC), Spirit Aerosystems Holdings (NYSE:SPR), Virgin Galactic Holdings (NYSE:SPCE).

Industry description

Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.

Market Cap

The average market capitalization across the Aerospace & Defense Industry is 20.3B. The market cap for tickers in the group ranges from 4.49 to 263.27B. GE holds the highest valuation in this group at 263.27B. The lowest valued company is BDRPF at 4.49.

High and low price notable news

The average weekly price growth across all stocks in the Aerospace & Defense Industry was 1%. For the same Industry, the average monthly price growth was 10%, and the average quarterly price growth was 44%. NMRSF experienced the highest price growth at 67%, while DFSC experienced the biggest fall at -25%.

Volume

The average weekly volume growth across all stocks in the Aerospace & Defense Industry was -60%. For the same stocks of the Industry, the average monthly volume growth was -25% and the average quarterly volume growth was -68%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 55
Price Growth Rating: 45
SMR Rating: 76
Profit Risk Rating: 61
Seasonality Score: 4 (-100 ... +100)
Related Portfolios: AEROSPACE PRODUCTS & SERVICES
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General Information

a manufacturer ofenergy control and optimization solutions

Industry AerospaceDefense

Profile
Fundamentals
Details
Industry
Industrial Machinery
Address
1081 Woodward Way
Phone
+1 970 482-5811
Employees
8800
Web
https://www.woodward.com