WABTEC CORP (WAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAB - US9297401088 - Common Stock
226.675 USD
-2.92 (-1.27%)
Overall WAB gets a fundamental rating of 5 out of 10. We evaluated WAB against 132 industry peers in the Machinery industry. WAB scores excellent on profitability, but there are some minor concerns on its financial health. 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.
- In the past year WAB had a positive cash flow from operations.
- WAB had positive earnings in each of the past 5 years.
- Each year in the past 5 years WAB had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of WAB (5.48%) is better than 62.88% of its industry peers.
- WAB has a Return On Equity of 10.68%. This is in the better half of the industry: WAB outperforms 63.64% of its industry peers.
- WAB has a Return On Invested Capital (8.04%) which 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 10.24%.
- The last Return On Invested Capital (8.04%) for WAB is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.68% | ||
| ROIC | 8.04% |
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
- WAB's Profit Margin of 10.94% is fine compared to the rest of the industry. WAB outperforms 76.52% of its industry peers.
- In the last couple of years the Profit Margin of WAB has grown nicely.
- Looking at the Operating Margin, with a value of 17.22%, WAB belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
- WAB's Operating Margin has improved in the last couple of years.
- WAB's Gross Margin of 33.96% is fine compared to the rest of the industry. WAB outperforms 60.61% of its industry peers.
- WAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.22% | ||
| PM (TTM) | 10.94% | ||
| GM | 33.96% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WAB is destroying value.
- WAB has less shares outstanding than it did 1 year ago.
- WAB has less shares outstanding than it did 5 years ago.
- WAB has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.37 indicates that WAB is not in any danger for bankruptcy at the moment.
- WAB has a Altman-Z score (3.37) which is in line with its industry peers.
- The Debt to FCF ratio of WAB is 4.17, which is a neutral value as it means it would take WAB, 4.17 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 4.17, WAB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.46 indicates that WAB is not too dependend on debt financing.
- The Debt to Equity ratio of WAB (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.84
WACC9.57%
2.3 Liquidity
- WAB has a Current Ratio of 1.42. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
- WAB has a Current ratio of 1.42. This is in the lower half of the industry: WAB underperforms 75.00% of its industry peers.
- A Quick Ratio of 0.75 indicates that WAB may have some problems paying its short term obligations.
- The Quick ratio of WAB (0.75) is worse than 81.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, which is quite good.
- WAB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.44% yearly.
- The Revenue has been growing slightly by 4.40% 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)15.7%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%16%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
3.2 Future
- The Earnings Per Share is expected to grow by 12.64% on average over the next years. This is quite good.
- Based on estimates for the next years, WAB will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y20.22%
EPS Next 2Y16.74%
EPS Next 3Y15.23%
EPS Next 5Y12.64%
Revenue Next Year6.18%
Revenue Next 2Y7.19%
Revenue Next 3Y6.57%
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
- WAB is valuated quite expensively with a Price/Earnings ratio of 26.51.
- WAB's Price/Earnings is on the same level as the industry average.
- WAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 22.09 indicates a rather expensive valuation of WAB.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WAB is on the same level as its industry peers.
- WAB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 22.09 |
4.2 Price Multiples
- WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
- WAB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.56 | ||
| EV/EBITDA | 18.73 |
4.3 Compensation for Growth
- The 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.
- WAB's earnings are expected to grow with 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)2.13
EPS Next 2Y16.74%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.44%, WAB is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.98, WAB has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.84, WAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
- On average, the dividend of WAB grows each year by 7.24%, which is quite nice.
- 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
5.3 Sustainability
- 13.90% 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.
DP13.9%
EPS Next 2Y16.74%
EPS Next 3Y15.23%
NYSE:WAB (1/20/2026, 12:09:04 PM)
226.675
-2.92 (-1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners95.06%
Inst Owner Change0.78%
Ins Owners0.62%
Ins Owner Change-1.01%
Market Cap38.75B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts77.78
Price Target240.93 (6.29%)
Short Float %1.21%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.9%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.38%
Min EPS beat(2)1.29%
Max EPS beat(2)3.47%
EPS beat(4)3
Avg EPS beat(4)3.15%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)5.32%
EPS beat(12)10
Avg EPS beat(12)5.78%
EPS beat(16)12
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.52%
Revenue beat(4)0
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)-0.52%
Revenue beat(8)2
Avg Revenue beat(8)-0.79%
Revenue beat(12)6
Avg Revenue beat(12)0.97%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)2.03%
PT rev (3m)5.15%
EPS NQ rev (1m)-0.3%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 22.09 | ||
| P/S | 3.59 | ||
| P/FCF | 30.56 | ||
| P/OCF | 26.01 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.73 |
EPS(TTM)8.55
EY3.77%
EPS(NY)10.26
Fwd EY4.53%
FCF(TTM)7.42
FCFY3.27%
OCF(TTM)8.72
OCFY3.84%
SpS63.08
BVpS64.62
TBVpS-13.75
PEG (NY)1.31
PEG (5Y)2.13
Graham Number111.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.68% | ||
| ROCE | 10.63% | ||
| ROIC | 8.04% | ||
| ROICexc | 8.29% | ||
| ROICexgc | 39.71% | ||
| OM | 17.22% | ||
| PM (TTM) | 10.94% | ||
| GM | 33.96% | ||
| FCFM | 11.76% |
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%
ROICexgc growth 3Y23.75%
ROICexgc 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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 45.03% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.4% | ||
| Profit Quality | 107.46% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.37 |
F-Score6
WACC9.57%
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)15.7%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%16%
EPS Next Y20.22%
EPS Next 2Y16.74%
EPS Next 3Y15.23%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.18%
Revenue Next 2Y7.19%
Revenue Next 3Y6.57%
Revenue Next 5Y5.53%
EBIT growth 1Y10.21%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.37%
EBIT Next 3Y15.91%
EBIT Next 5Y12.24%
FCF growth 1Y69.29%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y61.08%
OCF growth 3Y19.56%
OCF growth 5Y12.55%
WABTEC CORP / WAB FAQ
Can you provide the ChartMill fundamental rating for WABTEC CORP?
ChartMill assigns a fundamental rating of 5 / 10 to WAB.
What is the valuation status of WABTEC CORP (WAB) stock?
ChartMill assigns a valuation rating of 3 / 10 to WABTEC CORP (WAB). This can be considered as Overvalued.
Can you provide the profitability details for WABTEC CORP?
WABTEC CORP (WAB) has a profitability rating of 7 / 10.
Can you provide the financial health for WAB stock?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.
Can you provide the dividend sustainability for WAB stock?
The dividend rating of WABTEC CORP (WAB) is 5 / 10 and the dividend payout ratio is 13.9%.