WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
198 USD
+1.88 (+0.96%)
198 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WAB. WAB was compared to 130 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WAB was profitable.
In the past year WAB had a positive cash flow from operations.
Each year in the past 5 years WAB has been profitable.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.65%, WAB is doing good in the industry, outperforming 60.77% of the companies in the same industry.
With a Return On Equity value of 10.67%, WAB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
WAB has a Return On Invested Capital (8.10%) 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 10.01%.
The last Return On Invested Capital (8.10%) for WAB is above the 3 year average (6.98%), which is a sign of increasing profitability.
| 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's Profit Margin of 10.92% is fine compared to the rest of the industry. WAB outperforms 77.69% 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 79.23% of its industry peers.
WAB's Operating Margin has improved in the last couple of years.
The Gross Margin of WAB (33.57%) is comparable to the rest of the industry.
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.
Compared to 1 year ago, WAB has less shares outstanding
WAB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WAB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.31 indicates that WAB is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.31, WAB perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
The Debt to FCF ratio of WAB is 3.29, which is a good value as it means it would take WAB, 3.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.29, WAB is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that WAB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, WAB perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.88
WACC9.21%
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.
WAB has a worse Current ratio (1.76) than 60.77% of its industry peers.
WAB has a Quick Ratio of 1.05. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
WAB has a worse Quick ratio (1.05) than 60.00% of its industry peers.
| 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.
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 3.38%.
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
Based on estimates for the next years, WAB will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.64% on average per year.
Based on estimates for the next years, WAB will show a small growth in Revenue. The Revenue will grow by 5.53% on average per year.
EPS Next Y20.36%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
EPS Next 5Y12.64%
Revenue Next Year6.07%
Revenue Next 2Y6.83%
Revenue Next 3Y6.14%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WAB is valuated rather expensively with a Price/Earnings ratio of 24.06.
Compared to the rest of the industry, the Price/Earnings ratio of WAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.77, WAB is valued at the same level.
A Price/Forward Earnings ratio of 19.44 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 23.23. WAB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 19.44 |
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 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.31 | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
WAB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WAB 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)1.18
PEG (5Y)1.93
EPS Next 2Y16.3%
EPS Next 3Y14.56%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 1.80, WAB has a dividend in line with its industry peers.
With a Dividend Yield of 0.52, WAB pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
On average, the dividend of WAB grows each year by 7.24%, which is quite nice.
WAB has been paying a dividend for at least 10 years, so it has 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 13.53% 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.
DP13.53%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
198
+1.88 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-0.1%
Ins Owners0.64%
Ins Owner Change-1.19%
Market Cap33.85B
Analysts77.5
Price Target229.14 (15.73%)
Short Float %1.58%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)1.54%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)4.31%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 19.44 | ||
| P/S | 3.2 | ||
| P/FCF | 23.31 | ||
| P/OCF | 20.33 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.03 |
EPS(TTM)8.23
EY4.16%
EPS(NY)10.19
Fwd EY5.14%
FCF(TTM)8.49
FCFY4.29%
OCF(TTM)9.74
OCFY4.92%
SpS61.78
BVpS63.18
TBVpS-5.99
PEG (NY)1.18
PEG (5Y)1.93
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 | 3.31 |
F-Score7
WACC9.21%
ROIC/WACC0.88
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 Y20.36%
EPS Next 2Y16.3%
EPS Next 3Y14.56%
EPS Next 5Y12.64%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%2.34%
Revenue Next Year6.07%
Revenue Next 2Y6.83%
Revenue Next 3Y6.14%
Revenue Next 5Y5.53%
EBIT growth 1Y10.78%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.07%
EBIT Next 3Y14.2%
EBIT Next 5Y12.24%
FCF growth 1Y171.4%
FCF growth 3Y19.94%
FCF growth 5Y14.4%
OCF growth 1Y136.51%
OCF growth 3Y19.56%
OCF growth 5Y12.55%