Logo image of WAB

WABTEC CORP (WAB) Stock Fundamental Analysis

USA - NYSE:WAB - US9297401088 - Common Stock

197.13 USD
+1.13 (+0.58%)
Last: 10/15/2025, 8:06:26 PM
197.13 USD
0 (0%)
After Hours: 10/15/2025, 8:06:26 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WAB. WAB was compared to 129 industry peers in the Machinery industry. WAB has an excellent profitability rating, but there are some minor concerns on its financial health. WAB has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years WAB always reported a positive cash flow from operatings.
WAB Yearly Net Income VS EBIT VS OCF VS FCFWAB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

With a decent Return On Assets value of 5.65%, WAB is doing good in the industry, outperforming 60.47% of the companies in the same industry.
WAB has a Return On Equity of 10.67%. This is comparable to the rest of the industry: WAB outperforms 59.69% of its industry peers.
The Return On Invested Capital of WAB (8.10%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WAB is below the industry average of 10.01%.
The 3 year average ROIC (6.98%) for WAB is below the current ROIC(8.10%), indicating increased profibility in the last year.
Industry RankSector 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%
WAB Yearly ROA, ROE, ROICWAB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

WAB has a better Profit Margin (10.92%) than 77.52% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
The Operating Margin of WAB (17.02%) is better than 79.07% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
WAB has a Gross Margin (33.57%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WAB has grown nicely.
Industry RankSector 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%
WAB Yearly Profit, Operating, Gross MarginsWAB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WAB is destroying value.
The number of shares outstanding for WAB has been reduced compared to 1 year ago.
The number of shares outstanding for WAB has been reduced compared to 5 years ago.
WAB has a better debt/assets ratio than last year.
WAB Yearly Shares OutstandingWAB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
WAB Yearly Total Debt VS Total AssetsWAB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 3.30 indicates that WAB is not in any danger for bankruptcy at the moment.
WAB has a Altman-Z score of 3.30. This is comparable to the rest of the industry: WAB outperforms 56.59% of its industry peers.
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 67.44% 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.
The Debt to Equity ratio of WAB (0.44) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.44
Debt/FCF 3.29
Altman-Z 3.3
ROIC/WACC0.87
WACC9.26%
WAB Yearly LT Debt VS Equity VS FCFWAB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.76 indicates that WAB should not have too much problems paying its short term obligations.
WAB has a Current ratio of 1.76. This is in the lower half of the industry: WAB underperforms 61.24% of its industry peers.
A Quick Ratio of 1.05 indicates that WAB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.05, WAB is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.05
WAB Yearly Current Assets VS Current LiabilitesWAB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

5

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.
The Revenue has been growing slightly by 4.84% on average over the past years.
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

The Earnings Per Share is expected to grow by 12.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y20.36%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
EPS Next 5Y12.64%
Revenue Next Year6.07%
Revenue Next 2Y6.83%
Revenue Next 3Y6.14%
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.
WAB Yearly Revenue VS EstimatesWAB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
WAB Yearly EPS VS EstimatesWAB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.95, WAB is valued on the expensive side.
WAB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WAB to the average of the S&P500 Index (27.55), we can say WAB is valued inline with the index average.
A Price/Forward Earnings ratio of 19.35 indicates a rather expensive valuation of WAB.
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 (23.04), we can say WAB is valued inline with the index average.
Industry RankSector Rank
PE 23.95
Fwd PE 19.35
WAB Price Earnings VS Forward Price EarningsWAB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

WAB's Enterprise Value to EBITDA ratio is in line with 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 60.47% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.21
EV/EBITDA 16.02
WAB Per share dataWAB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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.
WAB's earnings are expected to grow with 14.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)1.93
EPS Next 2Y16.3%
EPS Next 3Y14.56%

5

5. Dividend

5.1 Amount

WAB has a yearly dividend return of 0.51%, which is pretty low.
WAB's Dividend Yield is comparable with the industry average which is at 1.81.
With a Dividend Yield of 0.51, WAB pays less dividend than the S&P500 average, which is at 2.43.
Industry RankSector Rank
Dividend Yield 0.51%

5.2 History

The dividend of WAB is nicely growing with an annual growth rate of 7.24%!
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
WAB Yearly Dividends per shareWAB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

13.53% 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.
DP13.53%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
WAB Yearly Income VS Free CF VS DividendWAB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
WAB Dividend Payout.WAB Dividend Payout, showing the Payout Ratio.WAB Dividend Payout.PayoutRetained Earnings

WABTEC CORP

NYSE:WAB (10/15/2025, 8:06:26 PM)

After market: 197.13 0 (0%)

197.13

+1.13 (+0.58%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)07-24 2025-07-24/bmo
Earnings (Next)10-22 2025-10-22/amc
Inst Owners94.5%
Inst Owner Change-0.03%
Ins Owners0.64%
Ins Owner Change-1.12%
Market Cap33.70B
Analysts77.5
Price Target229.14 (16.24%)
Short Float %1.58%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 0.51%
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date08-14 2025-08-14 (0.25)
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)0%
PT rev (3m)6.02%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)3.97%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.99%
Valuation
Industry RankSector Rank
PE 23.95
Fwd PE 19.35
P/S 3.19
P/FCF 23.21
P/OCF 20.24
P/B 3.12
P/tB N/A
EV/EBITDA 16.02
EPS(TTM)8.23
EY4.17%
EPS(NY)10.19
Fwd EY5.17%
FCF(TTM)8.49
FCFY4.31%
OCF(TTM)9.74
OCFY4.94%
SpS61.78
BVpS63.18
TBVpS-5.99
PEG (NY)1.18
PEG (5Y)1.93
Profitability
Industry RankSector 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 RankSector 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
WACC9.26%
ROIC/WACC0.87
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 Y20.36%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
EPS Next 5Y12.64%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%
Revenue Next Year6.07%
Revenue Next 2Y6.83%
Revenue Next 3Y6.14%
Revenue Next 5Y5.53%
EBIT growth 1Y10.78%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.07%
EBIT Next 3Y14.2%
EBIT Next 5Y12.24%
FCF growth 1Y171.4%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y136.51%
OCF growth 3Y19.56%
OCF growth 5Y12.55%