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.

Why NYSE:WAB may be interesting for quality investors.

• 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 robust ROIC excluding cash and goodwill at 45.79%, 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.
• With a favorable Debt/Free Cash Flow Ratio of 2.52, 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.
• 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.
• 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.
• 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.

What is the full fundamental picture of NYSE:WAB telling us.

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.

Overall WAB gets a fundamental rating of 6 out of 10. We evaluated WAB against 132 industry peers in the Machinery industry. WAB scores excellent on profitability, but there are some minor concerns on its financial health. WAB has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of WAB

More ideas for quality investing can be found on ChartMill 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.