Why WABTEC CORP (NYSE:WAB) qualifies as a quality stock.

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.

Some of the quality metrics of NYSE:WAB highlighted

• WABTEC CORP has achieved substantial revenue growth over the past 5 years, with a 17.27% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 42.19%, WABTEC CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of WABTEC CORP stands at 2.69, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• WABTEC CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 169.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• WABTEC CORP has experienced impressive EBIT growth over the past 5 years, with 23.66% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, WABTEC CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NYSE:WAB?

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

WAB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. While WAB has a great profitability rating, there are some minor concerns on its financial health. 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

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.