WABTEC CORP (WAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAB - US9297401088 - Common Stock
214.95 USD
+0.91 (+0.43%)
214.95 USD
0 (0%)
WAB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While WAB has a great profitability rating, there are some minor concerns on its financial health. WAB is quite expensive at the moment. It does show a decent 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.
WAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WAB (5.48%) is better than 63.08% of its industry peers.
The Return On Equity of WAB (10.68%) is better than 62.31% of its industry peers.
WAB has a Return On Invested Capital (8.04%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for WAB is below the industry average of 10.46%.
The 3 year average ROIC (6.98%) for WAB is below the current ROIC(8.04%), indicating increased profibility in the last year.
| 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
WAB has a Profit Margin of 10.94%. This is in the better half of the industry: WAB outperforms 76.15% 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 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WAB has grown nicely.
WAB has a better Gross Margin (33.96%) than 60.77% of its industry peers.
In the last couple of years the Gross Margin of WAB has grown nicely.
| 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
WAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WAB has less shares outstanding
WAB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WAB has been reduced compared to a year ago.
2.2 Solvency
WAB has an Altman-Z score of 3.23. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.23, WAB perfoms like the industry average, outperforming 56.15% of the companies in the same industry.
The Debt to FCF ratio of WAB is 4.17, which is a neutral value as it means it would take WAB, 4.17 years of fcf income to pay off 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.
WAB has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.46, WAB perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.86
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.42 indicates that WAB should not have too much problems paying its short term obligations.
WAB has a worse Current ratio (1.42) than 76.15% of its industry peers.
A Quick Ratio of 0.75 indicates that WAB may have some problems paying its short term obligations.
WAB has a worse Quick ratio (0.75) than 80.77% 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.
WAB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.44% yearly.
Looking at the last year, WAB shows a small growth in Revenue. The Revenue has grown by 4.40% in the last year.
The Revenue has been growing slightly by 4.84% on average over the past years.
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
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.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y20.19%
EPS Next 2Y16.7%
EPS Next 3Y15.18%
EPS Next 5Y12.64%
Revenue Next Year6.19%
Revenue Next 2Y6.94%
Revenue Next 3Y6.29%
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
The Price/Earnings ratio is 25.14, which means the current valuation is very expensive for WAB.
WAB's Price/Earnings ratio is in line with the industry average.
WAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 20.96 indicates a rather expensive valuation of WAB.
The rest of the industry has a similar Price/Forward Earnings ratio as WAB.
The average S&P500 Price/Forward Earnings ratio is at 23.69. WAB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 20.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAB is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.98 | ||
| EV/EBITDA | 17.66 |
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 15.18% in the coming years.
PEG (NY)1.25
PEG (5Y)2.02
EPS Next 2Y16.7%
EPS Next 3Y15.18%
5. Dividend
5.1 Amount
WAB has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, WAB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, WAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
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.
The dividend of WAB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.9%
EPS Next 2Y16.7%
EPS Next 3Y15.18%
214.95
+0.91 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change-0.55%
Ins Owners0.62%
Ins Owner Change-0.98%
Market Cap36.75B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts77.78
Price Target236.13 (9.85%)
Short Float %1.5%
Short Ratio2.64
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)1.17%
PT rev (3m)3.05%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 20.96 | ||
| P/S | 3.41 | ||
| P/FCF | 28.98 | ||
| P/OCF | 24.66 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.66 |
EPS(TTM)8.55
EY3.98%
EPS(NY)10.25
Fwd EY4.77%
FCF(TTM)7.42
FCFY3.45%
OCF(TTM)8.72
OCFY4.05%
SpS63.08
BVpS64.62
TBVpS-13.75
PEG (NY)1.25
PEG (5Y)2.02
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 | 3.23 |
F-Score6
WACC9.36%
ROIC/WACC0.86
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 Y20.19%
EPS Next 2Y16.7%
EPS Next 3Y15.18%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.19%
Revenue Next 2Y6.94%
Revenue Next 3Y6.29%
Revenue Next 5Y5.53%
EBIT growth 1Y10.21%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.32%
EBIT Next 3Y15.76%
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 3 / 10 to WABTEC CORP (WAB). This can be considered as Overvalued.
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 25.14 and the Price/Book (PB) ratio is 3.33.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.