Is WABTEC CORP (NYSE:WAB) suited for quality investing?

In this article we will dive into WABTEC CORP (NYSE:WAB) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WABTEC CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into WABTEC CORP's Quality Metrics.

• WABTEC CORP has shown strong performance in revenue growth over the past 5 years, with a 17.27% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of WABTEC CORP stands at 36.39%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 2.91, WABTEC CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• WABTEC CORP exhibits impressive Profit Quality (5-year) with a 169.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• The 5-year EBIT growth of WABTEC CORP has been remarkable, with 23.66% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• WABTEC CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of NYSE:WAB?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to WAB. WAB was compared to 130 industry peers in the Machinery industry. Both the profitability and the financial health of WAB get a neutral evaluation. Nothing too spectacular is happening here. WAB has a correct valuation and a medium growth rate.

Check the latest full fundamental report of WAB for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.