WABTEC CORP (WAB) Stock Fundamental Analysis
NYSE:WAB - New York Stock Exchange, Inc. - US9297401088 - Common Stock - Currency: USD
Taking everything into account, WAB scores 5 out of 10 in our fundamental rating. WAB was compared to 127 industry peers in the Machinery industry. WAB has only an average score on both its financial health and profitability. While showing a medium growth rate, WAB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WAB had positive earnings in the past year.
In the past year WAB had a positive cash flow from operations.
In the past 5 years WAB has always been profitable.
WAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WAB (5.79%) is comparable to the rest of the industry.
With a Return On Equity value of 10.67%, WAB perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
WAB has a Return On Invested Capital of 8.65%. This is comparable to the rest of the industry: WAB outperforms 59.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WAB is below the industry average of 10.78%.
The 3 year average ROIC (6.98%) for WAB is below the current ROIC(8.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.67% | ||
| ROIC | 8.65% |
ROA(3y)4.45%
ROA(5y)3.72%
ROE(3y)8.17%
ROE(5y)6.81%
ROIC(3y)6.98%
ROIC(5y)5.93%
1.3 Margins
WAB's Profit Margin of 10.53% is fine compared to the rest of the industry. WAB outperforms 70.87% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
Looking at the Operating Margin, with a value of 16.53%, WAB is in the better half of the industry, outperforming 76.38% of the companies in the same industry.
In the last couple of years the Operating Margin of WAB has grown nicely.
With a Gross Margin value of 33.20%, WAB perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
In the last couple of years the Gross Margin of WAB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.53% | ||
| PM (TTM) | 10.53% | ||
| GM | 33.2% |
OM growth 3Y9.42%
OM growth 5Y12.6%
PM growth 3Y12.67%
PM growth 5Y20.68%
GM growth 3Y1.91%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WAB is destroying value.
WAB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WAB has less shares outstanding
The debt/assets ratio for WAB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that WAB is not in any danger for bankruptcy at the moment.
WAB's Altman-Z score of 3.68 is fine compared to the rest of the industry. WAB outperforms 60.63% of its industry peers.
The Debt to FCF ratio of WAB is 2.72, which is a good value as it means it would take WAB, 2.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.72, WAB is in the better half of the industry, outperforming 68.50% of the companies in the same industry.
WAB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WAB has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.89
WACC9.68%
2.3 Liquidity
WAB has a Current Ratio of 1.34. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
WAB has a Current ratio of 1.34. This is amonst the worse of the industry: WAB underperforms 81.89% of its industry peers.
A Quick Ratio of 0.73 indicates that WAB may have some problems paying its short term obligations.
WAB has a worse Quick ratio (0.73) than 82.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.10%, which is quite impressive.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.21% in the past year.
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)21.1%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%20.63%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%4.53%
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 13.56% 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 Y17.15%
EPS Next 2Y14.56%
EPS Next 3Y13.56%
EPS Next 5YN/A
Revenue Next Year5.03%
Revenue Next 2Y5.66%
Revenue Next 3Y5.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.98 indicates a quite expensive valuation of WAB.
WAB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WAB to the average of the S&P500 Index (27.41), we can say WAB is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.62, WAB is valued on the expensive side.
WAB's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.19. WAB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 21.62 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
WAB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.86 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
The 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 13.56% in the coming years.
PEG (NY)1.57
PEG (5Y)2.17
EPS Next 2Y14.56%
EPS Next 3Y13.56%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.47%, which is pretty low.
WAB's Dividend Yield is comparable with the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.35, WAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of WAB is nicely growing with an annual growth rate of 7.24%!
WAB has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WAB decreased recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WAB pays out 13.29% of its income as dividend. This is a sustainable payout ratio.
WAB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.29%
EPS Next 2Y14.56%
EPS Next 3Y13.56%
213.66
-0.09 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change0%
Ins Owners0.65%
Ins Owner Change0.96%
Market Cap36.56B
Analysts76.47
Price Target216.12 (1.15%)
Short Float %1.23%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.93%
Min EPS beat(2)-3.51%
Max EPS beat(2)11.37%
EPS beat(4)3
Avg EPS beat(4)3.82%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)7.26%
EPS beat(12)9
Avg EPS beat(12)5.39%
EPS beat(16)12
Avg EPS beat(16)4.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-0.94%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)6
Avg Revenue beat(12)0.85%
Revenue beat(16)7
Avg Revenue beat(16)-0.07%
PT rev (1m)0%
PT rev (3m)-0.38%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.45%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 21.62 | ||
| P/S | 3.48 | ||
| P/FCF | 24.86 | ||
| P/OCF | 21.62 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.83 |
EPS(TTM)7.92
EY3.71%
EPS(NY)9.88
Fwd EY4.63%
FCF(TTM)8.6
FCFY4.02%
OCF(TTM)9.88
OCFY4.62%
SpS61.36
BVpS60.59
TBVpS-7.66
PEG (NY)1.57
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.67% | ||
| ROCE | 11.44% | ||
| ROIC | 8.65% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 47.01% | ||
| OM | 16.53% | ||
| PM (TTM) | 10.53% | ||
| GM | 33.2% | ||
| FCFM | 14.01% |
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-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 44% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.63% | ||
| Profit Quality | 133% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.68 |
F-Score8
WACC9.68%
ROIC/WACC0.89
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)21.1%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%20.63%
EPS Next Y17.15%
EPS Next 2Y14.56%
EPS Next 3Y13.56%
EPS Next 5YN/A
Revenue 1Y (TTM)5.21%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%4.53%
Revenue Next Year5.03%
Revenue Next 2Y5.66%
Revenue Next 3Y5.28%
Revenue Next 5Y5.53%
EBIT growth 1Y15.27%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year27.09%
EBIT Next 3Y12.86%
EBIT Next 5YN/A
FCF growth 1Y112.88%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y98.47%
OCF growth 3Y19.56%
OCF growth 5Y12.55%