WABTEC CORP (WAB) Stock Fundamental Analysis
NYSE:WAB - New York Stock Exchange, Inc. - US9297401088 - Common Stock - Currency: USD
WAB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While WAB has a great profitability rating, there are some minor concerns on its financial health. WAB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WAB was profitable.
WAB had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.79%, WAB is in the better half of the industry, outperforming 61.72% of the companies in the same industry.
WAB has a Return On Equity (10.67%) which is comparable to the rest of the industry.
WAB has a better Return On Invested Capital (8.65%) than 60.94% of its industry peers.
WAB had an Average Return On Invested Capital over the past 3 years of 6.98%. This is below the industry average of 10.31%.
The last Return On Invested Capital (8.65%) for WAB is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.67% | ||
| ROIC | 8.65% |
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
Looking at the Profit Margin, with a value of 10.53%, WAB is in the better half of the industry, outperforming 71.09% of the companies in the same industry.
WAB's Profit Margin has improved in the last couple of years.
WAB has a Operating Margin of 16.53%. This is in the better half of the industry: WAB outperforms 77.34% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
WAB has a Gross Margin of 33.20%. This is comparable to the rest of the industry: WAB outperforms 57.03% of its industry peers.
WAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.53% | ||
| PM (TTM) | 10.53% | ||
| GM | 33.2% |
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
WAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WAB has less shares outstanding
WAB has less 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 3.57. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB's Altman-Z score of 3.57 is in line compared to the rest of the industry. WAB outperforms 59.38% of its industry peers.
WAB has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as WAB would need 2.72 years to pay back of all of its debts.
WAB's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. WAB outperforms 67.97% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that WAB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, WAB is in line with its industry, outperforming 58.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.84
WACC10.25%
2.3 Liquidity
A Current Ratio of 1.34 indicates that WAB should not have too much problems paying its short term obligations.
WAB's Current ratio of 1.34 is on the low side compared to the rest of the industry. WAB is outperformed by 80.47% of its industry peers.
WAB has a Quick Ratio of 1.34. This is a bad value and indicates that WAB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WAB (0.73) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.10% over the past year.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.21% in the past year.
Measured over the past years, WAB shows a small growth in Revenue. The Revenue has been growing by 4.84% on average per year.
EPS 1Y (TTM)21.1%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%20.63%
Revenue 1Y (TTM)5.21%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%4.53%
3.2 Future
The Earnings Per Share is expected to grow by 13.19% on average over the next years. This is quite good.
WAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y16.63%
EPS Next 2Y14.25%
EPS Next 3Y13.19%
EPS Next 5YN/A
Revenue Next Year4.83%
Revenue Next 2Y5.39%
Revenue Next 3Y5.04%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.85 indicates a quite expensive valuation of WAB.
Compared to the rest of the industry, the Price/Earnings ratio of WAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.60, WAB is valued at the same level.
A Price/Forward Earnings ratio of 20.83 indicates a rather expensive valuation of WAB.
WAB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, WAB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 20.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WAB.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.82 | ||
| EV/EBITDA | 17.15 |
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 13.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)2.08
EPS Next 2Y14.25%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.49%, which is pretty low.
WAB's Dividend Yield is comparable with the industry average which is at 1.83.
With a Dividend Yield of 0.49, WAB pays less dividend than the S&P500 average, which is at 2.36.
| 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
13.29% 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.
DP13.29%
EPS Next 2Y14.25%
EPS Next 3Y13.19%
204.75
-2.41 (-1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.12%
Inst Owner Change-1.3%
Ins Owners1.05%
Ins Owner Change1.27%
Market Cap35.04B
Analysts76.47
Price Target212.5 (3.79%)
Short Float %1.23%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.93%
Min EPS beat(2)-3.51%
Max EPS beat(2)11.37%
EPS beat(4)3
Avg EPS beat(4)3.82%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)7.26%
EPS beat(12)9
Avg EPS beat(12)5.39%
EPS beat(16)12
Avg EPS beat(16)4.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-0.94%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)6
Avg Revenue beat(12)0.85%
Revenue beat(16)7
Avg Revenue beat(16)-0.07%
PT rev (1m)-2.05%
PT rev (3m)-2.25%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)1.24%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 20.83 | ||
| P/S | 3.34 | ||
| P/FCF | 23.82 | ||
| P/OCF | 20.72 | ||
| P/B | 3.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.15 |
EPS(TTM)7.92
EY3.87%
EPS(NY)9.83
Fwd EY4.8%
FCF(TTM)8.6
FCFY4.2%
OCF(TTM)9.88
OCFY4.83%
SpS61.36
BVpS60.59
TBVpS-7.66
PEG (NY)1.55
PEG (5Y)2.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.67% | ||
| ROCE | 11.44% | ||
| ROIC | 8.65% | ||
| ROICexc | 9.07% | ||
| ROICexgc | 47.01% | ||
| OM | 16.53% | ||
| PM (TTM) | 10.53% | ||
| GM | 33.2% | ||
| FCFM | 14.01% |
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-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.57 | ||
| Cap/Depr | 44% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.63% | ||
| Profit Quality | 133% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.57 |
F-Score8
WACC10.25%
ROIC/WACC0.84
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)21.1%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%20.63%
EPS Next Y16.63%
EPS Next 2Y14.25%
EPS Next 3Y13.19%
EPS Next 5YN/A
Revenue 1Y (TTM)5.21%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%4.53%
Revenue Next Year4.83%
Revenue Next 2Y5.39%
Revenue Next 3Y5.04%
Revenue Next 5Y5.53%
EBIT growth 1Y15.27%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year26.37%
EBIT Next 3Y12.93%
EBIT Next 5YN/A
FCF growth 1Y112.88%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y98.47%
OCF growth 3Y19.56%
OCF growth 5Y12.55%