WABTEC CORP (NYSE:WAB) Exhibits Quality Stock Traits. Here's Why.

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

• The 5-year revenue growth of WABTEC CORP has been remarkable, with 17.27% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• 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.
• WABTEC CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.52, 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 robust Profit Quality (5-year) ratio of 169.0%, WABTEC CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• WABTEC CORP has consistently achieved strong EBIT growth over the past 5 years, with a 23.66% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

Fundamental Analysis Observations

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

We assign a fundamental rating of 6 out of 10 to WAB. WAB was compared to 131 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.

Our latest full fundamental report of WAB contains the most current fundamental analsysis.

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.