WABTEC CORP (WAB)

US9297401088 - Common Stock

160.32  -3.11 (-1.9%)

After market: 160.32 0 (0%)

Fundamental Rating

5

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. WAB has an average financial health and profitability rating. WAB has a decent growth rate and is not valued too expensively.



6

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.
Each year in the past 5 years WAB had a positive operating cash flow.

1.2 Ratios

WAB has a Return On Assets (4.90%) which is comparable to the rest of the industry.
WAB has a Return On Equity of 8.77%. This is comparable to the rest of the industry: WAB outperforms 56.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.26%, WAB is in line with its industry, outperforming 54.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WAB is below the industry average of 10.68%.
The last Return On Invested Capital (7.26%) for WAB is above the 3 year average (5.70%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.9%
ROE 8.77%
ROIC 7.26%
ROA(3y)3.57%
ROA(5y)2.94%
ROE(3y)6.5%
ROE(5y)5.37%
ROIC(3y)5.7%
ROIC(5y)4.92%

1.3 Margins

With a decent Profit Margin value of 9.20%, WAB is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of WAB has grown nicely.
WAB's Operating Margin of 15.06% is fine compared to the rest of the industry. WAB outperforms 77.34% 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 31.67%, WAB is in line with its industry, outperforming 57.81% of the companies in the same industry.
WAB's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.06%
PM (TTM) 9.2%
GM 31.67%
OM growth 3Y9.44%
OM growth 5Y5.45%
PM growth 3Y15.48%
PM growth 5Y4.5%
GM growth 3Y3.23%
GM growth 5Y1.93%

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 more shares outstanding than it did 5 years ago.
The debt/assets ratio for WAB has been reduced compared to a year ago.

2.2 Solvency

WAB has an Altman-Z score of 3.36. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB's Altman-Z score of 3.36 is in line compared to the rest of the industry. WAB outperforms 57.81% of its industry peers.
The Debt to FCF ratio of WAB is 2.91, which is a good value as it means it would take WAB, 2.91 years of fcf income to pay off all of its debts.
WAB has a better Debt to FCF ratio (2.91) than 75.00% of its industry peers.
WAB has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
WAB has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 2.91
Altman-Z 3.36
ROIC/WACC0.84
WACC8.67%

2.3 Liquidity

A Current Ratio of 1.52 indicates that WAB should not have too much problems paying its short term obligations.
WAB has a Current ratio of 1.52. This is in the lower half of the industry: WAB underperforms 75.00% of its industry peers.
A Quick Ratio of 0.77 indicates that WAB may have some problems paying its short term obligations.
The Quick ratio of WAB (0.77) is worse than 78.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.52
Quick Ratio 0.77

6

3. Growth

3.1 Past

WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.02%, which is quite impressive.
Measured over the past years, WAB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.08% on average per year.
Looking at the last year, WAB shows a quite strong growth in Revenue. The Revenue has grown by 15.66% in the last year.
The Revenue has been growing by 17.27% on average over the past years. This is quite good.
EPS 1Y (TTM)30.02%
EPS 3Y16.3%
EPS 5Y9.08%
EPS Q2Q%47.66%
Revenue 1Y (TTM)15.66%
Revenue growth 3Y8.6%
Revenue growth 5Y17.27%
Sales Q2Q%13.81%

3.2 Future

WAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.46% yearly.
The Revenue is expected to grow by 6.53% on average over the next years.
EPS Next Y25.66%
EPS Next 2Y18.27%
EPS Next 3Y16.46%
EPS Next 5YN/A
Revenue Next Year7.81%
Revenue Next 2Y6.66%
Revenue Next 3Y6.53%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.51, which indicates a rather expensive current valuation of WAB.
The rest of the industry has a similar Price/Earnings ratio as WAB.
WAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
Based on the Price/Forward Earnings ratio of 19.33, the valuation of WAB can be described as rather expensive.
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 19.91, WAB is valued at the same level.
Industry RankSector Rank
PE 24.51
Fwd PE 19.33

4.2 Price Multiples

WAB's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAB indicates a somewhat cheap valuation: WAB is cheaper than 66.41% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.57
EV/EBITDA 15.55

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)2.7
EPS Next 2Y18.27%
EPS Next 3Y16.46%

5

5. Dividend

5.1 Amount

WAB has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, 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 2.39.
Industry RankSector Rank
Dividend Yield 0.49%

5.2 History

On average, the dividend of WAB grows each year by 7.39%, which is quite nice.
WAB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.39%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

13.94% of the earnings are spent on dividend by WAB. This is a low number and sustainable payout ratio.
The dividend of WAB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.94%
EPS Next 2Y18.27%
EPS Next 3Y16.46%

WABTEC CORP

NYSE:WAB (6/14/2024, 7:04:00 PM)

After market: 160.32 0 (0%)

160.32

-3.11 (-1.9%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.28B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.49%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 24.51
Fwd PE 19.33
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.96
PEG (5Y)2.7
Profitability
Industry RankSector Rank
ROA 4.9%
ROE 8.77%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.06%
PM (TTM) 9.2%
GM 31.67%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.52
Quick Ratio 0.77
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)30.02%
EPS 3Y16.3%
EPS 5Y
EPS Q2Q%
EPS Next Y25.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.66%
Revenue growth 3Y8.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y