WABTEC CORP (WAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAB - US9297401088 - Common Stock
224.42 USD
+1.98 (+0.89%)
225 USD
+0.58 (+0.26%)
Overall WAB gets a fundamental rating of 5 out of 10. We evaluated WAB against 132 industry peers in the Machinery industry. While WAB has a great profitability rating, there are some minor concerns on its financial health. WAB is valied quite expensively at the moment, while it does show a decent growth rate.
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.
WAB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, WAB is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
WAB has a Return On Equity of 10.68%. This is in the better half of the industry: WAB outperforms 63.64% of its industry peers.
WAB's Return On Invested Capital of 8.04% is in line compared to the rest of the industry. WAB outperforms 59.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAB is below the industry average of 10.22%.
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
Looking at the Profit Margin, with a value of 10.94%, WAB is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
In the last couple of years the Profit Margin of WAB has grown nicely.
The Operating Margin of WAB (17.22%) is better than 80.30% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
WAB has a better Gross Margin (33.96%) than 60.61% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WAB is destroying value.
WAB has less shares outstanding than it did 1 year ago.
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
WAB has an Altman-Z score of 3.30. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB's Altman-Z score of 3.30 is in line compared to the rest of the industry. WAB outperforms 56.06% of its industry peers.
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.
WAB has a Debt to FCF ratio of 4.17. This is comparable to the rest of the industry: WAB outperforms 59.09% of its industry peers.
WAB has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, WAB is in line with its industry, outperforming 50.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.3 |
ROIC/WACC0.85
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.42 indicates that WAB should not have too much problems paying its short term obligations.
WAB's Current ratio of 1.42 is on the low side compared to the rest of the industry. WAB is outperformed by 75.00% 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.
Looking at the Quick ratio, with a value of 0.75, WAB is doing worse than 81.06% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 4.40% 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)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.
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 Y20.22%
EPS Next 2Y16.74%
EPS Next 3Y15.23%
EPS Next 5Y12.64%
Revenue Next Year6.21%
Revenue Next 2Y7.09%
Revenue Next 3Y6.42%
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 26.25, which means the current valuation is very expensive for WAB.
The rest of the industry has a similar Price/Earnings ratio as WAB.
Compared to an average S&P500 Price/Earnings ratio of 27.19, WAB is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.87, the valuation of WAB can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAB is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, WAB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 21.87 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as WAB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.26 | ||
| EV/EBITDA | 18.21 |
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 15.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.3
PEG (5Y)2.11
EPS Next 2Y16.74%
EPS Next 3Y15.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, WAB is not a good candidate for dividend investing.
WAB's Dividend Yield is comparable with the industry average which is at 0.85.
With a Dividend Yield of 0.45, WAB pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of WAB is nicely growing with an annual growth rate of 7.24%!
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 2Y16.74%
EPS Next 3Y15.23%
224.42
+1.98 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.06%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change-0.98%
Market Cap38.37B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts77.78
Price Target236.41 (5.34%)
Short Float %1.43%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.8
Dividend Growth(5Y)7.24%
DP13.9%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.12%
PT rev (3m)3.17%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.25 | ||
| Fwd PE | 21.87 | ||
| P/S | 3.56 | ||
| P/FCF | 30.26 | ||
| P/OCF | 25.75 | ||
| P/B | 3.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.21 |
EPS(TTM)8.55
EY3.81%
EPS(NY)10.26
Fwd EY4.57%
FCF(TTM)7.42
FCFY3.3%
OCF(TTM)8.72
OCFY3.88%
SpS63.08
BVpS64.62
TBVpS-13.75
PEG (NY)1.3
PEG (5Y)2.11
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 | 3.3 |
F-Score6
WACC9.49%
ROIC/WACC0.85
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 Y20.22%
EPS Next 2Y16.74%
EPS Next 3Y15.23%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.21%
Revenue Next 2Y7.09%
Revenue Next 3Y6.42%
Revenue Next 5Y5.53%
EBIT growth 1Y10.21%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.37%
EBIT Next 3Y15.91%
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
Can you provide the ChartMill fundamental rating for WABTEC CORP?
ChartMill assigns a fundamental rating of 5 / 10 to WAB.
What is the valuation status of WABTEC CORP (WAB) stock?
ChartMill assigns a valuation rating of 3 / 10 to WABTEC CORP (WAB). This can be considered as Overvalued.
Can you provide the profitability details for WABTEC CORP?
WABTEC CORP (WAB) has a profitability rating of 7 / 10.
Can you provide the financial health for WAB stock?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.
Can you provide the dividend sustainability for WAB stock?
The dividend rating of WABTEC CORP (WAB) is 5 / 10 and the dividend payout ratio is 13.9%.