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WABTEC CORP (WAB) Stock Fundamental Analysis

USA - NYSE:WAB - US9297401088 - Common Stock

194.15 USD
+0.54 (+0.28%)
Last: 10/17/2025, 8:04:00 PM
194.15 USD
0 (0%)
After Hours: 10/17/2025, 8:04:00 PM
Fundamental Rating

5

Overall WAB gets a fundamental rating of 5 out of 10. We evaluated WAB against 129 industry peers in the Machinery industry. While WAB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WAB has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year WAB was profitable.
WAB had a positive operating cash flow in the past year.
In the past 5 years WAB has always been profitable.
WAB had a positive operating cash flow in each of the past 5 years.
WAB Yearly Net Income VS EBIT VS OCF VS FCFWAB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

WAB has a better Return On Assets (5.65%) than 60.47% of its industry peers.
WAB has a Return On Equity (10.67%) which is in line with its industry peers.
WAB has a Return On Invested Capital (8.10%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for WAB is below the industry average of 10.01%.
The 3 year average ROIC (6.98%) for WAB is below the current ROIC(8.10%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.65%
ROE 10.67%
ROIC 8.1%
ROA(3y)4.45%
ROA(5y)3.72%
ROE(3y)8.17%
ROE(5y)6.81%
ROIC(3y)6.98%
ROIC(5y)5.93%
WAB Yearly ROA, ROE, ROICWAB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

The Profit Margin of WAB (10.92%) is better than 77.52% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
WAB's Operating Margin of 17.02% is fine compared to the rest of the industry. WAB outperforms 79.07% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
The Gross Margin of WAB (33.57%) is comparable to the rest of the industry.
WAB's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 17.02%
PM (TTM) 10.92%
GM 33.57%
OM growth 3Y9.42%
OM growth 5Y12.6%
PM growth 3Y12.67%
PM growth 5Y20.68%
GM growth 3Y1.91%
GM growth 5Y3.36%
WAB Yearly Profit, Operating, Gross MarginsWAB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

5

2. Health

2.1 Basic Checks

WAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WAB has less shares outstanding than it did 1 year ago.
WAB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WAB has been reduced compared to a year ago.
WAB Yearly Shares OutstandingWAB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
WAB Yearly Total Debt VS Total AssetsWAB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

WAB has an Altman-Z score of 3.28. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WAB (3.28) is comparable to the rest of the industry.
The Debt to FCF ratio of WAB is 3.29, which is a good value as it means it would take WAB, 3.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WAB (3.29) is better than 67.44% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that WAB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, WAB perfoms like the industry average, outperforming 52.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 3.29
Altman-Z 3.28
ROIC/WACC0.88
WACC9.25%
WAB Yearly LT Debt VS Equity VS FCFWAB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

WAB has a Current Ratio of 1.76. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WAB (1.76) is worse than 61.24% of its industry peers.
A Quick Ratio of 1.05 indicates that WAB should not have too much problems paying its short term obligations.
WAB has a worse Quick ratio (1.05) than 60.47% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.05
WAB Yearly Current Assets VS Current LiabilitesWAB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

5

3. Growth

3.1 Past

WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.08%, which is quite good.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
WAB shows a small growth in Revenue. In the last year, the Revenue has grown by 3.38%.
Measured over the past years, WAB shows a small growth in Revenue. The Revenue has been growing by 4.84% on average per year.
EPS 1Y (TTM)16.08%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%15.82%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%

3.2 Future

Based on estimates for the next years, WAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.64% on average per year.
WAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y20.36%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
EPS Next 5Y12.64%
Revenue Next Year6.07%
Revenue Next 2Y6.83%
Revenue Next 3Y6.14%
Revenue Next 5Y5.53%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
WAB Yearly Revenue VS EstimatesWAB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
WAB Yearly EPS VS EstimatesWAB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.59, WAB is valued on the expensive side.
WAB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.40, WAB is valued at the same level.
The Price/Forward Earnings ratio is 19.06, which indicates a rather expensive current valuation of WAB.
The rest of the industry has a similar Price/Forward Earnings ratio as WAB.
WAB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.59
Fwd PE 19.06
WAB Price Earnings VS Forward Price EarningsWAB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAB is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAB indicates a somewhat cheap valuation: WAB is cheaper than 60.47% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 22.86
EV/EBITDA 15.84
WAB Per share dataWAB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

WAB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WAB may justify a higher PE ratio.
A more expensive valuation may be justified as WAB's earnings are expected to grow with 14.56% in the coming years.
PEG (NY)1.16
PEG (5Y)1.9
EPS Next 2Y16.3%
EPS Next 3Y14.56%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.52%, WAB is not a good candidate for dividend investing.
WAB's Dividend Yield is comparable with the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.38, WAB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.52%

5.2 History

On average, the dividend of WAB grows each year by 7.24%, which is quite nice.
WAB has been paying a dividend for at least 10 years, so it has a reliable track record.
WAB has decreased its dividend recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
WAB Yearly Dividends per shareWAB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

WAB pays out 13.53% of its income as dividend. This is a sustainable payout ratio.
The dividend of WAB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.53%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
WAB Yearly Income VS Free CF VS DividendWAB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
WAB Dividend Payout.WAB Dividend Payout, showing the Payout Ratio.WAB Dividend Payout.PayoutRetained Earnings

WABTEC CORP

NYSE:WAB (10/17/2025, 8:04:00 PM)

After market: 194.15 0 (0%)

194.15

+0.54 (+0.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)07-24 2025-07-24/bmo
Earnings (Next)10-22 2025-10-22/bmo
Inst Owners94.5%
Inst Owner Change-0.03%
Ins Owners0.64%
Ins Owner Change-1.12%
Market Cap33.19B
Analysts77.5
Price Target229.14 (18.02%)
Short Float %1.58%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 0.52%
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date08-14 2025-08-14 (0.25)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)3.47%
Max EPS beat(2)11.37%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)7.09%
EPS beat(12)10
Avg EPS beat(12)5.68%
EPS beat(16)12
Avg EPS beat(16)4.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)-1.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)6
Avg Revenue beat(12)0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)6.02%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)3.97%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.99%
Valuation
Industry RankSector Rank
PE 23.59
Fwd PE 19.06
P/S 3.14
P/FCF 22.86
P/OCF 19.93
P/B 3.07
P/tB N/A
EV/EBITDA 15.84
EPS(TTM)8.23
EY4.24%
EPS(NY)10.19
Fwd EY5.25%
FCF(TTM)8.49
FCFY4.37%
OCF(TTM)9.74
OCFY5.02%
SpS61.78
BVpS63.18
TBVpS-5.99
PEG (NY)1.16
PEG (5Y)1.9
Profitability
Industry RankSector Rank
ROA 5.65%
ROE 10.67%
ROCE 10.71%
ROIC 8.1%
ROICexc 8.89%
ROICexgc 39.28%
OM 17.02%
PM (TTM) 10.92%
GM 33.57%
FCFM 13.75%
ROA(3y)4.45%
ROA(5y)3.72%
ROE(3y)8.17%
ROE(5y)6.81%
ROIC(3y)6.98%
ROIC(5y)5.93%
ROICexc(3y)7.29%
ROICexc(5y)6.18%
ROICexgc(3y)42.04%
ROICexgc(5y)35.85%
ROCE(3y)9.23%
ROCE(5y)7.84%
ROICexcg growth 3Y23.75%
ROICexcg growth 5Y18.66%
ROICexc growth 3Y22.7%
ROICexc growth 5Y19.49%
OM growth 3Y9.42%
OM growth 5Y12.6%
PM growth 3Y12.67%
PM growth 5Y20.68%
GM growth 3Y1.91%
GM growth 5Y3.36%
F-Score7
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 3.29
Debt/EBITDA 2.08
Cap/Depr 42.69%
Cap/Sales 2.02%
Interest Coverage 250
Cash Conversion 72.49%
Profit Quality 125.93%
Current Ratio 1.76
Quick Ratio 1.05
Altman-Z 3.28
F-Score7
WACC9.25%
ROIC/WACC0.88
Cap/Depr(3y)35.76%
Cap/Depr(5y)32.52%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.83%
Profit Quality(3y)139.69%
Profit Quality(5y)149.06%
High Growth Momentum
Growth
EPS 1Y (TTM)16.08%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%15.82%
EPS Next Y20.36%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
EPS Next 5Y12.64%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%
Revenue Next Year6.07%
Revenue Next 2Y6.83%
Revenue Next 3Y6.14%
Revenue Next 5Y5.53%
EBIT growth 1Y10.78%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.07%
EBIT Next 3Y14.2%
EBIT Next 5Y12.24%
FCF growth 1Y171.4%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y136.51%
OCF growth 3Y19.56%
OCF growth 5Y12.55%