WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
199.58 USD
-4.34 (-2.13%)
199.58 USD
0 (0%)
Taking everything into account, WAB scores 5 out of 10 in our fundamental rating. WAB was compared to 130 industry peers in the Machinery industry. While WAB has a great profitability rating, there are some minor concerns on its financial health. WAB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WAB had positive earnings in the past year.
WAB had a positive operating cash flow in the past year.
In the past 5 years WAB has always been profitable.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
WAB has a better Return On Assets (5.48%) than 61.54% of its industry peers.
WAB has a Return On Equity of 10.68%. This is in the better half of the industry: WAB outperforms 61.54% of its industry peers.
With a Return On Invested Capital value of 8.04%, WAB perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
WAB had an Average Return On Invested Capital over the past 3 years of 6.98%. This is below the industry average of 10.25%.
The 3 year average ROIC (6.98%) for WAB is below the current ROIC(8.04%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.68% | ||
| ROIC | 8.04% |
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 has a Profit Margin of 10.94%. This is in the better half of the industry: WAB outperforms 78.46% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
WAB has a better Operating Margin (17.22%) than 79.23% of its industry peers.
WAB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.96%, WAB is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
WAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.22% | ||
| PM (TTM) | 10.94% | ||
| GM | 33.96% |
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
WAB has a better debt/assets ratio than last year.
2.2 Solvency
WAB has an Altman-Z score of 3.12. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WAB (3.12) is comparable to the rest of the industry.
The Debt to FCF ratio of WAB is 4.17, which is a neutral value as it means it would take WAB, 4.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.17, WAB is in line with its industry, outperforming 60.00% of the companies in the same industry.
WAB has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
WAB's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. WAB outperforms 48.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.86
WACC9.4%
2.3 Liquidity
WAB has a Current Ratio of 1.42. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.42, WAB is doing worse than 76.92% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that WAB may have some problems paying its short term obligations.
WAB has a Quick ratio of 0.75. This is in the lower half of the industry: WAB underperforms 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, which is quite good.
Measured over the past years, WAB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.44% on average per year.
The Revenue has been growing slightly by 4.40% in the past year.
The Revenue has been growing slightly by 4.84% on average over the past years.
EPS 1Y (TTM)15.7%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%16%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
3.2 Future
The Earnings Per Share is expected to grow by 12.64% on average over the next years. This is quite good.
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 Y20.18%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
EPS Next 5Y12.64%
Revenue Next Year6.2%
Revenue Next 2Y6.94%
Revenue Next 3Y6.36%
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 23.34, the valuation of WAB can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WAB is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.89. WAB is around the same levels.
Based on the Price/Forward Earnings ratio of 19.44, the valuation of WAB can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WAB.
WAB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 19.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WAB.
The rest of the industry has a similar Price/Free Cash Flow ratio as WAB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.91 | ||
| EV/EBITDA | 16.86 |
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.
A more expensive valuation may be justified as WAB's earnings are expected to grow with 15.29% in the coming years.
PEG (NY)1.16
PEG (5Y)1.88
EPS Next 2Y16.76%
EPS Next 3Y15.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, WAB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, WAB has a dividend in line with its industry peers.
With a Dividend Yield of 0.49, WAB pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
WAB has decreased its dividend recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.90% of the earnings are spent on dividend by WAB. This is a low number and sustainable payout ratio.
WAB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.9%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
199.58
-4.34 (-2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-0.81%
Ins Owners0.64%
Ins Owner Change-4.3%
Market Cap34.12B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts78.82
Price Target233.4 (16.95%)
Short Float %1.48%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.9%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.14%
Min EPS beat(2)0.81%
Max EPS beat(2)3.47%
EPS beat(4)3
Avg EPS beat(4)3.03%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)5.26%
EPS beat(12)10
Avg EPS beat(12)5.74%
EPS beat(16)12
Avg EPS beat(16)4.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)-0.93%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)6
Avg Revenue beat(12)0.94%
Revenue beat(16)6
Avg Revenue beat(16)-0.22%
PT rev (1m)1.86%
PT rev (3m)1.86%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 19.44 | ||
| P/S | 3.16 | ||
| P/FCF | 26.91 | ||
| P/OCF | 22.9 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.86 |
EPS(TTM)8.55
EY4.28%
EPS(NY)10.27
Fwd EY5.14%
FCF(TTM)7.42
FCFY3.72%
OCF(TTM)8.72
OCFY4.37%
SpS63.09
BVpS64.63
TBVpS-13.75
PEG (NY)1.16
PEG (5Y)1.88
Graham Number111.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.68% | ||
| ROCE | 10.63% | ||
| ROIC | 8.04% | ||
| ROICexc | 8.29% | ||
| ROICexgc | 39.71% | ||
| OM | 17.22% | ||
| PM (TTM) | 10.94% | ||
| GM | 33.96% | ||
| FCFM | 11.76% |
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%
ROICexgc growth 3Y23.75%
ROICexgc 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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 45.03% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.4% | ||
| Profit Quality | 107.46% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.12 |
F-Score6
WACC9.4%
ROIC/WACC0.86
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)15.7%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%16%
EPS Next Y20.18%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.2%
Revenue Next 2Y6.94%
Revenue Next 3Y6.36%
Revenue Next 5Y5.53%
EBIT growth 1Y10.21%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.07%
EBIT Next 3Y14.2%
EBIT Next 5Y12.24%
FCF growth 1Y69.29%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y61.08%
OCF growth 3Y19.56%
OCF growth 5Y12.55%
WABTEC CORP / WAB FAQ
What is the fundamental rating for WAB stock?
ChartMill assigns a fundamental rating of 5 / 10 to WAB.
Can you provide the valuation status for WABTEC CORP?
ChartMill assigns a valuation rating of 4 / 10 to WABTEC CORP (WAB). This can be considered as Fairly Valued.
What is the profitability of WAB stock?
WABTEC CORP (WAB) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WABTEC CORP (WAB) stock?
The Price/Earnings (PE) ratio for WABTEC CORP (WAB) is 23.34 and the Price/Book (PB) ratio is 3.09.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.