WABTEC CORP (WAB)
US9297401088 - Common Stock
WAB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 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.
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.
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 better Return On Assets (5.68%) than 62.99% of its industry peers.
WAB's Return On Equity of 10.33% is in line compared to the rest of the industry. WAB outperforms 59.84% of its industry peers.
WAB has a better Return On Invested Capital (8.48%) than 62.20% of its industry peers.
WAB had an Average Return On Invested Capital over the past 3 years of 5.70%. This is significantly below the industry average of 11.01%.
The 3 year average ROIC (5.70%) for WAB is below the current ROIC(8.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 10.33% | ||
| ROIC | 8.48% |
ROA(3y)3.57%
ROA(5y)2.94%
ROE(3y)6.5%
ROE(5y)5.37%
ROIC(3y)5.7%
ROIC(5y)4.92%
1.3 Margins
The Profit Margin of WAB (10.25%) is better than 74.80% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
With a decent Operating Margin value of 16.31%, WAB is doing good in the industry, outperforming 79.53% of the companies in the same industry.
WAB's Operating Margin has improved in the last couple of years.
WAB has a Gross Margin (32.86%) which is comparable to the rest of the industry.
WAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.31% | ||
| PM (TTM) | 10.25% | ||
| GM | 32.86% |
OM growth 3Y9.44%
OM growth 5Y5.45%
PM growth 3Y15.48%
PM growth 5Y4.5%
GM growth 3Y3.23%
GM growth 5Y1.93%
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
The number of shares outstanding for WAB has been increased compared to 5 years ago.
Compared to 1 year ago, WAB has an improved debt to assets ratio.
2.2 Solvency
WAB has an Altman-Z score of 3.76. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB has a better Altman-Z score (3.76) than 62.20% of its industry peers.
The Debt to FCF ratio of WAB is 2.52, which is a good value as it means it would take WAB, 2.52 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.52, WAB is doing good in the industry, outperforming 76.38% of the companies in the same industry.
WAB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WAB has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: WAB outperforms 59.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 3.76 |
ROIC/WACC0.94
WACC9.01%
2.3 Liquidity
WAB has a Current Ratio of 1.30. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.30, WAB is doing worse than 85.04% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that WAB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, WAB is doing worse than 88.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.88%, which is quite impressive.
Measured over the past years, WAB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.08% on average per year.
WAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.23%.
Measured over the past years, WAB shows a quite strong growth in Revenue. The Revenue has been growing by 17.27% on average per year.
EPS 1Y (TTM)29.88%
EPS 3Y16.3%
EPS 5Y9.08%
EPS Q2Q%17.65%
Revenue 1Y (TTM)9.23%
Revenue growth 3Y8.6%
Revenue growth 5Y17.27%
Sales Q2Q%4.43%
3.2 Future
Based on estimates for the next years, WAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.24% on average per year.
The Revenue is expected to grow by 6.53% on average over the next years.
EPS Next Y29.97%
EPS Next 2Y20.11%
EPS Next 3Y18.24%
EPS Next 5YN/A
Revenue Next Year8.17%
Revenue Next 2Y6.9%
Revenue Next 3Y6.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.80, WAB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WAB is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WAB to the average of the S&P500 Index (28.96), we can say WAB is valued inline with the index average.
A Price/Forward Earnings ratio of 23.15 indicates a rather expensive valuation of WAB.
WAB's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.82. WAB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 23.15 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAB indicates a somewhat cheap valuation: WAB is cheaper than 70.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 16.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 18.24% in the coming years.
PEG (NY)0.89
PEG (5Y)2.95
EPS Next 2Y20.11%
EPS Next 3Y18.24%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.41%, which is pretty low.
WAB's Dividend Yield is comparable with the industry average which is at 1.54.
With a Dividend Yield of 0.41, WAB pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of WAB is nicely growing with an annual growth rate of 7.39%!
WAB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.39%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
12.94% of the earnings are spent on dividend by WAB. This is a low number and sustainable payout ratio.
WAB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.94%
EPS Next 2Y20.11%
EPS Next 3Y18.24%
WABTEC CORP
NYSE:WAB (11/21/2024, 7:00:00 PM)
After market: 198.03 0 (0%)198.03
+3.6 (+1.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.8 | ||
| Fwd PE | 23.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.89
PEG (5Y)2.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 10.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.31% | ||
| PM (TTM) | 10.25% | ||
| GM | 32.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.88%
EPS 3Y16.3%
EPS 5Y
EPS Q2Q%
EPS Next Y29.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.23%
Revenue growth 3Y8.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y