WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
188.535 USD
+0.88 (+0.47%)
We assign a fundamental rating of 6 out of 10 to WAB. WAB was compared to 128 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.
1. Profitability
1.1 Basic Checks
In the past year WAB was profitable.
WAB had a positive operating cash flow in the past year.
Each year in the past 5 years WAB has been profitable.
Each year in the past 5 years WAB had a positive operating cash flow.
1.2 Ratios
WAB has a Return On Assets (5.65%) which is comparable to the rest of the industry.
The Return On Equity of WAB (10.67%) is better than 60.16% of its industry peers.
The Return On Invested Capital of WAB (8.10%) 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 10.02%.
The 3 year average ROIC (6.98%) for WAB is below the current ROIC(8.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 10.67% | ||
| ROIC | 8.1% |
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
WAB has a better Profit Margin (10.92%) than 77.34% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
WAB's Operating Margin of 17.02% is fine compared to the rest of the industry. WAB outperforms 78.91% of its industry peers.
WAB's Operating Margin has improved in the last couple of years.
WAB has a Gross Margin (33.57%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WAB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.02% | ||
| PM (TTM) | 10.92% | ||
| GM | 33.57% |
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.
The number of shares outstanding for WAB has been reduced compared to 1 year ago.
The number of shares outstanding for WAB has been reduced compared to 5 years ago.
WAB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that WAB is not in any danger for bankruptcy at the moment.
WAB has a Altman-Z score (3.21) which is in line with its industry peers.
WAB has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as WAB would need 3.29 years to pay back of all of its debts.
WAB has a better Debt to FCF ratio (3.29) than 64.84% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that WAB is not too dependend on debt financing.
The Debt to Equity ratio of WAB (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.84
WACC9.69%
2.3 Liquidity
WAB has a Current Ratio of 1.76. 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 (1.76) is worse than 60.16% of its industry peers.
A Quick Ratio of 1.05 indicates that WAB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, WAB is in line with its industry, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.08%, which is quite good.
WAB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.44% yearly.
The Revenue has been growing slightly by 3.38% in the past year.
WAB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.84% yearly.
EPS 1Y (TTM)16.08%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%15.82%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%
3.2 Future
The Earnings Per Share is expected to grow by 14.56% on average over the next years. This is quite good.
WAB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y20.33%
EPS Next 2Y16.25%
EPS Next 3Y14.56%
EPS Next 5YN/A
Revenue Next Year6.06%
Revenue Next 2Y6.88%
Revenue Next 3Y6.09%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
WAB is valuated rather expensively with a Price/Earnings ratio of 22.91.
The rest of the industry has a similar Price/Earnings ratio as WAB.
When comparing the Price/Earnings ratio of WAB to the average of the S&P500 Index (27.20), we can say WAB is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.53, WAB is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as WAB.
When comparing the Price/Forward Earnings ratio of WAB to the average of the S&P500 Index (22.71), we can say WAB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA is on the same level as the industry average.
61.72% of the companies in the same industry are more expensive than WAB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.2 | ||
| EV/EBITDA | 15.4 |
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.
A more expensive valuation may be justified as WAB's earnings are expected to grow with 14.56% in the coming years.
PEG (NY)1.13
PEG (5Y)1.84
EPS Next 2Y16.25%
EPS Next 3Y14.56%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, WAB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, WAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of WAB is nicely growing with an annual growth rate of 7.24%!
WAB has been paying a dividend for at least 10 years, so it has a reliable track record.
WAB has decreased its dividend recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.53% of the earnings are spent on dividend by WAB. This is a low number and sustainable payout ratio.
The dividend of WAB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.53%
EPS Next 2Y16.25%
EPS Next 3Y14.56%
NYSE:WAB (9/17/2025, 11:08:18 AM)
188.535
+0.88 (+0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.2%
Inst Owner Change-0.25%
Ins Owners0.64%
Ins Owner Change-0.81%
Market Cap32.23B
Analysts77.5
Price Target229.09 (21.51%)
Short Float %1.62%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.53%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)3.47%
Max EPS beat(2)11.37%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-3.51%
Max EPS beat(4)11.37%
EPS beat(8)6
Avg EPS beat(8)7.09%
EPS beat(12)10
Avg EPS beat(12)5.68%
EPS beat(16)12
Avg EPS beat(16)4.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-1.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)-1.02%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)6
Avg Revenue beat(12)0.74%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)-0.02%
PT rev (3m)6%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)4.45%
EPS NY rev (1m)2.71%
EPS NY rev (3m)3.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.59%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 18.53 | ||
| P/S | 3.05 | ||
| P/FCF | 22.2 | ||
| P/OCF | 19.36 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.4 |
EPS(TTM)8.23
EY4.37%
EPS(NY)10.18
Fwd EY5.4%
FCF(TTM)8.49
FCFY4.51%
OCF(TTM)9.74
OCFY5.17%
SpS61.78
BVpS63.18
TBVpS-5.99
PEG (NY)1.13
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 10.67% | ||
| ROCE | 10.71% | ||
| ROIC | 8.1% | ||
| ROICexc | 8.89% | ||
| ROICexgc | 39.28% | ||
| OM | 17.02% | ||
| PM (TTM) | 10.92% | ||
| GM | 33.57% | ||
| FCFM | 13.75% |
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%
ROICexcg growth 3Y23.75%
ROICexcg 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-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 42.69% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.49% | ||
| Profit Quality | 125.93% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 3.21 |
F-Score7
WACC9.69%
ROIC/WACC0.84
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)16.08%
EPS 3Y20.82%
EPS 5Y12.44%
EPS Q2Q%15.82%
EPS Next Y20.33%
EPS Next 2Y16.25%
EPS Next 3Y14.56%
EPS Next 5YN/A
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%
Revenue Next Year6.06%
Revenue Next 2Y6.88%
Revenue Next 3Y6.09%
Revenue Next 5Y5.53%
EBIT growth 1Y10.78%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year27.86%
EBIT Next 3Y14.09%
EBIT Next 5YN/A
FCF growth 1Y171.4%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y136.51%
OCF growth 3Y19.56%
OCF growth 5Y12.55%