WABTEC CORP (WAB)
US9297401088 - Common Stock
Taking everything into account, WAB scores 7 out of 10 in our fundamental rating. WAB was compared to 131 industry peers in the Machinery industry. WAB gets an excellent profitability rating and is at the same time showing great financial health properties. WAB has a decent growth rate and is not valued too expensively. This makes WAB very considerable for quality investing!
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.
In the past 5 years WAB has always been profitable.
WAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAB has a better Return On Assets (14.74%) than 92.25% of its industry peers.
Looking at the Return On Equity, with a value of 26.56%, WAB belongs to the top of the industry, outperforming 87.60% of the companies in the same industry.
The Return On Invested Capital of WAB (16.72%) is better than 89.15% of its industry peers.
WAB had an Average Return On Invested Capital over the past 3 years of 5.70%. This is significantly below the industry average of 11.02%.
The 3 year average ROIC (5.70%) for WAB is below the current ROIC(16.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.74% | ||
| ROE | 26.56% | ||
| ROIC | 16.72% |
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
WAB has a better Profit Margin (27.24%) than 99.22% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
WAB has a better Operating Margin (33.09%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
Looking at the Gross Margin, with a value of 29.47%, WAB is in line with its industry, outperforming 50.39% of the companies in the same industry.
In the last couple of years the Gross Margin of WAB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.09% | ||
| PM (TTM) | 27.24% | ||
| GM | 29.47% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WAB is creating value.
WAB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WAB has been increased compared to 5 years ago.
The debt/assets ratio for WAB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.65 indicates that WAB is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAB (3.65) is better than 65.12% of its industry peers.
The Debt to FCF ratio of WAB is 2.69, which is a good value as it means it would take WAB, 2.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.69, WAB is in the better half of the industry, outperforming 75.97% of the companies in the same industry.
WAB has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
WAB has a Debt to Equity ratio of 0.33. This is in the better half of the industry: WAB outperforms 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.98
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.38 indicates that WAB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.38, WAB is doing worse than 80.62% of the companies in the same industry.
WAB has a Quick Ratio of 1.38. This is a bad value and indicates that WAB is not financially healthy enough and could expect problems in meeting its short term obligations.
WAB has a worse Quick ratio (0.73) than 82.17% of its industry peers.
WAB does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, 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.
WAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.67%.
WAB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.27% yearly.
EPS 1Y (TTM)36.08%
EPS 3Y16.3%
EPS 5Y9.08%
EPS Q2Q%39.01%
Revenue 1Y (TTM)13.67%
Revenue growth 3Y8.6%
Revenue growth 5Y17.27%
Sales Q2Q%9.85%
3.2 Future
The Earnings Per Share is expected to grow by 16.46% on average over the next years. This is quite good.
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.52, the valuation of WAB can be described as rather expensive.
WAB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.41. WAB is around the same levels.
A Price/Forward Earnings ratio of 19.25 indicates a rather expensive valuation of WAB.
WAB's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.59. WAB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 19.25 |
4.2 Price Multiples
85.27% of the companies in the same industry are more expensive than WAB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAB indicates a somewhat cheap valuation: WAB is cheaper than 72.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
WAB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of WAB may justify a higher PE ratio.
A more expensive valuation may be justified as WAB's earnings are expected to grow with 16.46% in the coming years.
PEG (NY)0.88
PEG (5Y)2.48
EPS Next 2Y18.27%
EPS Next 3Y16.46%
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 1.67.
With a Dividend Yield of 0.51, WAB pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of WAB is nicely growing with an annual growth rate of 7.39%!
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
4.74% 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.
DP4.74%
EPS Next 2Y18.27%
EPS Next 3Y16.46%
WABTEC CORP
NYSE:WAB (7/26/2024, 6:09:04 PM)
After market: 161.66 +1.97 (+1.23%)159.69
+0.56 (+0.35%)
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 Cap28.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 19.25 | ||
| 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)0.88
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.74% | ||
| ROE | 26.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.09% | ||
| PM (TTM) | 27.24% | ||
| GM | 29.47% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.73 | ||
| 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)36.08%
EPS 3Y16.3%
EPS 5Y
EPS Q2Q%
EPS Next Y25.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.67%
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