Analyzing the Quality Characteristics of WABTEC CORP (NYSE:WAB).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if WABTEC CORP (NYSE:WAB) is suited for quality investing. Investors should of course do their own research, but we spotted WABTEC CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of WABTEC CORP

• 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.
• With a robust ROIC excluding cash and goodwill at 36.39%, WABTEC CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• WABTEC CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.91, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 169.0%, WABTEC CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• WABTEC CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 23.66%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• WABTEC CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, WAB scores 5 out of 10 in our fundamental rating. WAB was compared to 129 industry peers in the Machinery industry. WAB has only an average score on both its financial health and profitability. WAB is not valued too expensively and it also shows a decent growth rate.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.