WABTEC CORP (WAB)
US9297401088 - Common Stock
WAB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. WAB has an average financial health and profitability rating. 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.
WAB had a positive operating cash flow in the past year.
Each year in the past 5 years WAB has been profitable.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
WAB has a Return On Assets (4.90%) which is comparable to the rest of the industry.
WAB's Return On Equity of 8.77% is in line compared to the rest of the industry. WAB outperforms 51.16% of its industry peers.
WAB has a Return On Invested Capital (7.22%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAB is significantly below the industry average of 10.72%.
The 3 year average ROIC (5.70%) for WAB is below the current ROIC(7.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 8.77% | ||
| ROIC | 7.22% |
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
The Profit Margin of WAB (9.20%) is better than 66.67% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
WAB has a Operating Margin of 14.99%. This is in the better half of the industry: WAB outperforms 73.64% of its industry peers.
WAB's Operating Margin has improved in the last couple of years.
WAB's Gross Margin of 31.63% is in line compared to the rest of the industry. WAB outperforms 57.36% of its industry peers.
In the last couple of years the Gross Margin of WAB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.99% | ||
| PM (TTM) | 9.2% | ||
| GM | 31.63% |
OM growth 3Y9.44%
OM growth 5Y5.45%
PM growth 3Y15.48%
PM growth 5Y4.5%
GM growth 3Y3.23%
GM growth 5Y1.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WAB 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.
Compared to 1 year ago, WAB has an improved debt to assets ratio.
2.2 Solvency
WAB has an Altman-Z score of 3.42. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.42, WAB perfoms like the industry average, outperforming 56.59% of the companies in the same industry.
WAB has a debt to FCF ratio of 2.91. This is a good value and a sign of high solvency as WAB would need 2.91 years to pay back of all of its debts.
WAB has a Debt to FCF ratio (2.91) which is in line with 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 of 0.38. This is in the better half of the industry: WAB outperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.91 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.79
WACC9.11%
2.3 Liquidity
WAB has a Current Ratio of 1.52. 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 1.52, WAB is doing worse than 82.95% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that WAB may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, WAB is not doing good in the industry: 84.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.02% over the past year.
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.
WAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.66%.
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 growth Q2Q47.66%
Revenue 1Y (TTM)15.66%
Revenue growth 3Y8.6%
Revenue growth 5Y17.27%
Revenue growth Q2Q13.81%
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 14.02% on average per year.
WAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.52% yearly.
EPS Next Y15.4%
EPS Next 2Y13.68%
EPS Next 3Y14.02%
EPS Next 5YN/A
Revenue Next Year6.02%
Revenue Next 2Y5.71%
Revenue Next 3Y4.52%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.13, WAB can be considered very expensive at the moment.
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 (24.84), we can say WAB is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.45, the valuation of WAB can be described as rather expensive.
WAB's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WAB to the average of the S&P500 Index (21.35), we can say WAB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA is on the same level as the industry average.
WAB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.14 | ||
| EV/EBITDA | 16 |
4.3 Compensation for Growth
WAB's 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 14.02% in the coming years.
PEG (NY)1.63
PEG (5Y)2.77
EPS Next 2Y13.68%
EPS Next 3Y14.02%
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 1.72, WAB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, WAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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 2Y13.68%
EPS Next 3Y14.02%
WABTEC CORP
NYSE:WAB (4/26/2024, 7:23:46 PM)
After market: 164.36 0 (0%)164.36
+1.18 (+0.72%)
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 Cap29.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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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Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.13 | ||
| Fwd PE | 21.45 | ||
| 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)1.63
PEG (5Y)2.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 8.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.99% | ||
| PM (TTM) | 9.2% | ||
| GM | 31.63% | ||
| 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)30.02%
EPS 3Y16.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.66%
Revenue growth 3Y8.6%
Revenue growth 5Y
Revenue growth 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