WABTEC CORP (WAB) Stock Fundamental Analysis
NYSE:WAB - US9297401088 - Common Stock
193.784 USD
-1.96 (-1%)
WAB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. WAB scores excellent on profitability, but there are some minor concerns on its financial health. WAB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WAB was profitable.
In the past year WAB had a positive cash flow from operations.
WAB had positive earnings in each of the past 5 years.
WAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAB has a Return On Assets (5.65%) which is comparable to the rest of the industry.
The Return On Equity of WAB (10.67%) is better than 60.63% of its industry peers.
WAB's Return On Invested Capital of 8.10% is in line compared to the rest of the industry. WAB outperforms 59.06% of its industry peers.
WAB had an Average Return On Invested Capital over the past 3 years of 6.98%. This is below the industry average of 10.47%.
The last Return On Invested Capital (8.10%) for WAB is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of WAB (10.92%) is better than 75.59% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 17.02%, WAB is doing good in the industry, outperforming 77.95% of the companies in the same industry.
WAB's Operating Margin has improved in the last couple of years.
WAB has a Gross Margin (33.57%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WAB has grown nicely.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, WAB has less shares outstanding
The number of shares outstanding for WAB has been reduced compared to 5 years ago.
Compared to 1 year ago, WAB has an improved debt to assets ratio.
2.2 Solvency
WAB has an Altman-Z score of 3.30. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.30, WAB is in line with its industry, outperforming 54.33% of the companies in the same 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 63.78% of its industry peers.
WAB has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
WAB has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 3.3 |
ROIC/WACC0.84
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.76 indicates that WAB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, WAB is in line with its industry, outperforming 40.94% of the companies in the same industry.
WAB has a Quick Ratio of 1.05. 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 Quick ratio (1.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.08% over the past year.
WAB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.44% yearly.
Looking at the last year, WAB shows a small growth in Revenue. The Revenue has grown by 3.38% in the last 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)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 14.56% on average per year.
Based on estimates for the next years, WAB will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y20.33%
EPS Next 2Y16.25%
EPS Next 3Y14.56%
EPS Next 5YN/A
Revenue Next Year6.12%
Revenue Next 2Y6.84%
Revenue Next 3Y6.09%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 23.55, the valuation of WAB can be described as rather expensive.
WAB's Price/Earnings ratio is in line with the industry average.
WAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 19.04 indicates a rather expensive valuation of WAB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, WAB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 19.04 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as WAB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.82 | ||
| EV/EBITDA | 16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WAB has a very decent profitability rating, which may justify a higher PE ratio.
WAB's earnings are expected to grow with 14.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.89
EPS Next 2Y16.25%
EPS Next 3Y14.56%
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 1.87.
With a Dividend Yield of 0.52, WAB pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector 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.
The dividend of WAB decreased recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WAB pays out 13.53% 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 2Y16.25%
EPS Next 3Y14.56%
NYSE:WAB (8/25/2025, 11:36:09 AM)
193.784
-1.96 (-1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.2%
Inst Owner Change-0.25%
Ins Owners0.64%
Ins Owner Change-1.49%
Market Cap33.13B
Analysts77.5
Price Target229.14 (18.25%)
Short Float %1.53%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)1.54%
PT rev (3m)7.83%
EPS NQ rev (1m)3.75%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)2.71%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)2.93%
Revenue NQ rev (3m)3.11%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.55 | ||
| Fwd PE | 19.04 | ||
| P/S | 3.14 | ||
| P/FCF | 22.82 | ||
| P/OCF | 19.9 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16 |
EPS(TTM)8.23
EY4.25%
EPS(NY)10.18
Fwd EY5.25%
FCF(TTM)8.49
FCFY4.38%
OCF(TTM)9.74
OCFY5.03%
SpS61.78
BVpS63.18
TBVpS-5.99
PEG (NY)1.16
PEG (5Y)1.89
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.3 |
F-Score7
WACC9.66%
ROIC/WACC0.84
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 Y20.33%
EPS Next 2Y16.25%
EPS Next 3Y14.56%
EPS Next 5YN/A
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%
Revenue Next Year6.12%
Revenue Next 2Y6.84%
Revenue Next 3Y6.09%
Revenue Next 5Y5.53%
EBIT growth 1Y10.78%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year27.86%
EBIT Next 3Y14.09%
EBIT Next 5YN/A
FCF growth 1Y171.4%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y136.51%
OCF growth 3Y19.56%
OCF growth 5Y12.55%