WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
204.27 USD
-5.38 (-2.57%)
204.27 USD
0 (0%)
Taking everything into account, WAB scores 5 out of 10 in our fundamental rating. WAB was compared to 130 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WAB had positive earnings in the past year.
WAB had a positive operating cash flow in the past year.
WAB had positive earnings in each of the past 5 years.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
WAB's Return On Assets of 5.48% is fine compared to the rest of the industry. WAB outperforms 60.77% of its industry peers.
WAB has a better Return On Equity (10.68%) than 60.77% of its industry peers.
WAB has a Return On Invested Capital (8.04%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WAB is below the industry average of 10.28%.
The last Return On Invested Capital (8.04%) for WAB is above the 3 year average (6.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.68% | ||
| ROIC | 8.04% |
ROA(3y)4.45%
ROA(5y)3.72%
ROE(3y)8.17%
ROE(5y)6.81%
ROIC(3y)6.98%
ROIC(5y)5.93%
1.3 Margins
The Profit Margin of WAB (10.94%) is better than 78.46% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.22%, WAB is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
WAB's Operating Margin has improved in the last couple of years.
WAB has a Gross Margin of 33.96%. This is in the better half of the industry: WAB outperforms 60.77% of its industry peers.
WAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.22% | ||
| PM (TTM) | 10.94% | ||
| GM | 33.96% |
OM growth 3Y9.42%
OM growth 5Y12.6%
PM growth 3Y12.67%
PM growth 5Y20.68%
GM growth 3Y1.91%
GM growth 5Y3.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WAB is destroying value.
Compared to 1 year ago, WAB has less shares outstanding
Compared to 5 years ago, WAB has less shares outstanding
Compared to 1 year ago, WAB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that WAB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.18, WAB is in line with its industry, outperforming 56.15% of the companies in the same industry.
WAB has a debt to FCF ratio of 4.17. This is a neutral value as WAB would need 4.17 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.17, WAB is in line with its industry, outperforming 59.23% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that WAB is not too dependend on debt financing.
WAB has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.87
WACC9.27%
2.3 Liquidity
WAB has a Current Ratio of 1.42. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WAB (1.42) is worse than 76.92% of its industry peers.
WAB has a Quick Ratio of 1.42. This is a bad value and indicates that WAB is not financially healthy enough and could expect problems in meeting its short term obligations.
WAB has a Quick ratio of 0.75. This is in the lower half of the industry: WAB underperforms 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.70% over the past year.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
WAB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.40%.
Measured over the past years, WAB shows a small growth in Revenue. The Revenue has been growing by 4.84% on average per year.
EPS 1Y (TTM)15.7%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%16%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
3.2 Future
WAB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.64% yearly.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y20.18%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
EPS Next 5Y12.64%
Revenue Next Year6.2%
Revenue Next 2Y6.94%
Revenue Next 3Y6.36%
Revenue Next 5Y5.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.89, which indicates a rather expensive current valuation of WAB.
The rest of the industry has a similar Price/Earnings ratio as WAB.
The average S&P500 Price/Earnings ratio is at 25.91. WAB is around the same levels.
A Price/Forward Earnings ratio of 19.90 indicates a rather expensive valuation of WAB.
WAB's Price/Forward Earnings ratio is in line with the industry average.
WAB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
WAB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 17.28 |
4.3 Compensation for Growth
WAB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WAB has a very decent profitability rating, which may justify a higher PE ratio.
WAB's earnings are expected to grow with 15.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)1.92
EPS Next 2Y16.76%
EPS Next 3Y15.29%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.49%, which is pretty low.
WAB's Dividend Yield is comparable with the industry average which is at 1.86.
With a Dividend Yield of 0.49, WAB pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
On average, the dividend of WAB grows each year by 7.24%, which is quite nice.
WAB has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WAB decreased recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WAB pays out 13.90% of its income as dividend. This is a sustainable payout ratio.
WAB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.9%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
204.27
-5.38 (-2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-2.31%
Ins Owners0.64%
Ins Owner Change-0.89%
Market Cap34.92B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts78.82
Price Target233.4 (14.26%)
Short Float %1.48%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.9%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.14%
Min EPS beat(2)0.81%
Max EPS beat(2)3.47%
EPS beat(4)3
Avg EPS beat(4)3.03%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)5.26%
EPS beat(12)10
Avg EPS beat(12)5.74%
EPS beat(16)12
Avg EPS beat(16)4.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)-0.93%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)6
Avg Revenue beat(12)0.94%
Revenue beat(16)6
Avg Revenue beat(16)-0.22%
PT rev (1m)1.86%
PT rev (3m)1.86%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 19.9 | ||
| P/S | 3.24 | ||
| P/FCF | 27.54 | ||
| P/OCF | 23.44 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.28 |
EPS(TTM)8.55
EY4.19%
EPS(NY)10.27
Fwd EY5.03%
FCF(TTM)7.42
FCFY3.63%
OCF(TTM)8.72
OCFY4.27%
SpS63.09
BVpS64.63
TBVpS-13.75
PEG (NY)1.18
PEG (5Y)1.92
Graham Number111.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.68% | ||
| ROCE | 10.63% | ||
| ROIC | 8.04% | ||
| ROICexc | 8.29% | ||
| ROICexgc | 39.71% | ||
| OM | 17.22% | ||
| PM (TTM) | 10.94% | ||
| GM | 33.96% | ||
| FCFM | 11.76% |
ROA(3y)4.45%
ROA(5y)3.72%
ROE(3y)8.17%
ROE(5y)6.81%
ROIC(3y)6.98%
ROIC(5y)5.93%
ROICexc(3y)7.29%
ROICexc(5y)6.18%
ROICexgc(3y)42.04%
ROICexgc(5y)35.85%
ROCE(3y)9.23%
ROCE(5y)7.84%
ROICexgc growth 3Y23.75%
ROICexgc growth 5Y18.66%
ROICexc growth 3Y22.7%
ROICexc growth 5Y19.49%
OM growth 3Y9.42%
OM growth 5Y12.6%
PM growth 3Y12.67%
PM growth 5Y20.68%
GM growth 3Y1.91%
GM growth 5Y3.36%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 45.03% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.4% | ||
| Profit Quality | 107.46% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.18 |
F-Score6
WACC9.27%
ROIC/WACC0.87
Cap/Depr(3y)35.76%
Cap/Depr(5y)32.52%
Cap/Sales(3y)1.9%
Cap/Sales(5y)1.83%
Profit Quality(3y)139.69%
Profit Quality(5y)149.06%
High Growth Momentum
Growth
EPS 1Y (TTM)15.7%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%16%
EPS Next Y20.18%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.2%
Revenue Next 2Y6.94%
Revenue Next 3Y6.36%
Revenue Next 5Y5.53%
EBIT growth 1Y10.21%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.07%
EBIT Next 3Y14.2%
EBIT Next 5Y12.24%
FCF growth 1Y69.29%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y61.08%
OCF growth 3Y19.56%
OCF growth 5Y12.55%
WABTEC CORP / WAB FAQ
What is the fundamental rating for WAB stock?
ChartMill assigns a fundamental rating of 5 / 10 to WAB.
Can you provide the valuation status for WABTEC CORP?
ChartMill assigns a valuation rating of 4 / 10 to WABTEC CORP (WAB). This can be considered as Fairly Valued.
What is the profitability of WAB stock?
WABTEC CORP (WAB) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WABTEC CORP (WAB) stock?
The Price/Earnings (PE) ratio for WABTEC CORP (WAB) is 23.89 and the Price/Book (PB) ratio is 3.16.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.