Why the quality investor may take a look at 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.

Why NYSE:WAB may be interesting for quality investors.

• 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.
• WABTEC CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 45.79% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• The Debt/Free Cash Flow Ratio of WABTEC CORP stands at 2.52, 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.
• 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.
• The EBIT 5-year growth of WABTEC CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous 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 belongs to the best of the industry regarding profitability, 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 ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.