WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
196.14 USD
-1.78 (-0.9%)
196.14 USD
0 (0%)
Taking everything into account, WAB scores 5 out of 10 in our fundamental rating. WAB was compared to 130 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
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.
Each year in the past 5 years WAB had a positive operating cash flow.
1.2 Ratios
WAB has a Return On Assets of 5.48%. This is in the better half of the industry: WAB outperforms 61.54% of its industry peers.
WAB has a better Return On Equity (10.68%) than 61.54% of its industry peers.
With a Return On Invested Capital value of 8.04%, WAB perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
WAB had an Average Return On Invested Capital over the past 3 years of 6.98%. This is below the industry average of 10.24%.
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
The Profit Margin of WAB (10.94%) is better than 78.46% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
WAB has a better Operating Margin (17.22%) than 79.23% of its industry peers.
WAB's Operating Margin has improved in the last couple of years.
WAB has a Gross Margin of 33.96%. This is in the better half of the industry: WAB outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WAB is destroying value.
WAB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WAB has been reduced compared to 5 years ago.
The debt/assets ratio for WAB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that WAB is not in any danger for bankruptcy at the moment.
WAB has a Altman-Z score of 3.04. This is comparable to the rest of the industry: WAB outperforms 54.62% 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 60.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that WAB is not too dependend on debt financing.
The Debt to Equity ratio of WAB (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.86
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.42 indicates that WAB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, WAB is doing worse than 76.92% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that WAB may have some problems paying its short term obligations.
WAB's Quick ratio of 0.75 is on the low side compared to the rest of the industry. WAB is outperformed by 79.23% 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.
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
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 Y20.18%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
EPS Next 5Y12.64%
Revenue Next Year6.2%
Revenue Next 2Y6.94%
Revenue Next 3Y6.36%
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
Based on the Price/Earnings ratio of 22.94, the valuation of WAB can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WAB is on the same level as its industry peers.
WAB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.07.
A Price/Forward Earnings ratio of 19.11 indicates a rather expensive valuation of WAB.
The rest of the industry has a similar Price/Forward Earnings ratio as WAB.
When comparing the Price/Forward Earnings ratio of WAB to the average of the S&P500 Index (34.08), we can say WAB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.11 |
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 | 26.44 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
The 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 15.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)1.84
EPS Next 2Y16.76%
EPS Next 3Y15.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, WAB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, WAB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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 2Y16.76%
EPS Next 3Y15.29%
196.14
-1.78 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-0.81%
Ins Owners0.64%
Ins Owner Change-4.3%
Market Cap33.53B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts78.82
Price Target233.4 (19%)
Short Float %1.43%
Short Ratio2.4
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)1.86%
PT rev (3m)1.86%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.11 | ||
| P/S | 3.11 | ||
| P/FCF | 26.44 | ||
| P/OCF | 22.5 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.29 |
EPS(TTM)8.55
EY4.36%
EPS(NY)10.27
Fwd EY5.23%
FCF(TTM)7.42
FCFY3.78%
OCF(TTM)8.72
OCFY4.44%
SpS63.09
BVpS64.63
TBVpS-13.75
PEG (NY)1.14
PEG (5Y)1.84
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 | 3.04 |
F-Score6
WACC9.3%
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 Y20.18%
EPS Next 2Y16.76%
EPS Next 3Y15.29%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.2%
Revenue Next 2Y6.94%
Revenue Next 3Y6.36%
Revenue Next 5Y5.53%
EBIT growth 1Y10.21%
EBIT growth 3Y20.27%
EBIT growth 5Y18.05%
EBIT Next Year28.07%
EBIT Next 3Y14.2%
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 4 / 10 to WABTEC CORP (WAB). This can be considered as Fairly Valued.
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 22.94 and the Price/Book (PB) ratio is 3.03.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.