WABTEC CORP (WAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAB - US9297401088 - Common Stock
215.58 USD
+5.96 (+2.84%)
215.65 USD
+0.07 (+0.03%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, WAB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WAB was profitable.
WAB had a positive operating cash flow in the past year.
In the past 5 years WAB has always 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.
With a decent Return On Equity value of 10.68%, WAB is doing good in the industry, outperforming 62.31% of the companies in the same industry.
WAB's Return On Invested Capital of 8.04% is in line compared to the rest of the industry. WAB outperforms 59.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAB is below the industry average of 10.46%.
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 76.15% of the companies in the same industry.
In the last couple of years the Profit Margin of WAB has grown nicely.
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.
Looking at the Gross Margin, with a value of 33.96%, WAB is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
WAB's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WAB is destroying value.
Compared to 1 year ago, WAB has less shares outstanding
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
An Altman-Z score of 3.23 indicates that WAB is not in any danger for bankruptcy at the moment.
WAB has a Altman-Z score (3.23) which is in line with its industry peers.
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.
With a Debt to FCF ratio value of 4.17, WAB perfoms like the industry average, 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.
WAB's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. WAB outperforms 49.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.86
WACC9.39%
2.3 Liquidity
WAB has a Current Ratio of 1.42. This is a normal value and indicates that WAB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.42, WAB is not doing good in the industry: 76.15% of the companies in the same industry are doing better.
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.
The Quick ratio of WAB (0.75) is worse than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
WAB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.70%, which is quite good.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
Looking at the last year, WAB shows a small growth in Revenue. The Revenue has grown by 4.40% in the last 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
The Earnings Per Share is expected to grow by 12.64% on average over the next years. This is quite good.
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 Y20.19%
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.
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 quite expensively with a Price/Earnings ratio of 25.21.
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 (26.59), we can say WAB is valued inline with the index average.
WAB is valuated rather expensively with a Price/Forward Earnings ratio of 21.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAB is on the same level as its industry peers.
WAB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 21.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WAB.
WAB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.07 | ||
| EV/EBITDA | 17.71 |
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.
WAB's earnings are expected to grow with 15.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)2.03
EPS Next 2Y16.7%
EPS Next 3Y15.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, WAB is not a good candidate for dividend investing.
WAB's Dividend Yield is comparable with the industry average which is at 1.84.
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.
WAB has decreased its dividend recently.
Dividend Growth(5Y)7.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.90% 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.
DP13.9%
EPS Next 2Y16.7%
EPS Next 3Y15.18%
215.58
+5.96 (+2.84%)
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 Cap36.86B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts77.78
Price Target236.13 (9.53%)
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 | 25.21 | ||
| Fwd PE | 21.02 | ||
| P/S | 3.42 | ||
| P/FCF | 29.07 | ||
| P/OCF | 24.74 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.71 |
EPS(TTM)8.55
EY3.97%
EPS(NY)10.25
Fwd EY4.76%
FCF(TTM)7.42
FCFY3.44%
OCF(TTM)8.72
OCFY4.04%
SpS63.08
BVpS64.62
TBVpS-13.75
PEG (NY)1.25
PEG (5Y)2.03
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
WACC9.39%
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 25.21 and the Price/Book (PB) ratio is 3.34.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.