WABTEC CORP (WAB) Stock Fundamental Analysis
NYSE:WAB - New York Stock Exchange, Inc. - US9297401088 - Common Stock
Overall WAB gets a fundamental rating of 6 out of 10. We evaluated WAB against 131 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 has a correct valuation and a medium 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.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WAB (5.68%) is better than 61.42% of its industry peers.
WAB has a Return On Equity of 10.33%. This is comparable to the rest of the industry: WAB outperforms 59.06% of its industry peers.
The Return On Invested Capital of WAB (8.48%) is better than 61.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WAB is significantly below the industry average of 11.19%.
The 3 year average ROIC (5.70%) for WAB is below the current ROIC(8.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 10.33% | ||
| ROIC | 8.48% |
ROA(3y)3.57%
ROA(5y)2.94%
ROE(3y)6.5%
ROE(5y)5.37%
ROIC(3y)5.7%
ROIC(5y)4.92%
1.3 Margins
WAB has a better Profit Margin (10.25%) than 71.65% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
WAB has a Operating Margin of 16.31%. This is in the better half of the industry: WAB outperforms 78.74% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
The Gross Margin of WAB (32.86%) is comparable to the rest of the industry.
WAB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.31% | ||
| PM (TTM) | 10.25% | ||
| GM | 32.86% |
OM growth 3Y9.44%
OM growth 5Y5.45%
PM growth 3Y15.48%
PM growth 5Y4.5%
GM growth 3Y3.23%
GM growth 5Y1.93%
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 more shares outstanding
The debt/assets ratio for WAB has been reduced compared to a year ago.
2.2 Solvency
WAB has an Altman-Z score of 3.85. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.85, WAB is in line with its industry, outperforming 59.06% of the companies in the same industry.
WAB has a debt to FCF ratio of 2.52. This is a good value and a sign of high solvency as WAB would need 2.52 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.52, WAB is doing good in the industry, outperforming 74.02% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that WAB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, WAB is in line with its industry, outperforming 59.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.9
WACC9.47%
2.3 Liquidity
WAB has a Current Ratio of 1.30. 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 Current ratio of 1.30. This is amonst the worse of the industry: WAB underperforms 85.83% of its industry peers.
A Quick Ratio of 0.65 indicates that WAB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, WAB is doing worse than 88.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.88% over the past year.
The Earnings Per Share has been growing by 9.08% on average over the past years. This is quite good.
WAB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.23%.
Measured over the past years, WAB shows a quite strong growth in Revenue. The Revenue has been growing by 17.27% on average per year.
EPS 1Y (TTM)29.88%
EPS 3Y16.3%
EPS 5Y9.08%
EPS Q2Q%17.65%
Revenue 1Y (TTM)9.23%
Revenue growth 3Y8.6%
Revenue growth 5Y17.27%
Sales Q2Q%4.43%
3.2 Future
The Earnings Per Share is expected to grow by 16.43% 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 6.95% on average per year.
EPS Next Y29.88%
EPS Next 2Y20.49%
EPS Next 3Y18.32%
EPS Next 5Y16.43%
Revenue Next Year8.31%
Revenue Next 2Y7.18%
Revenue Next 3Y6.79%
Revenue Next 5Y6.95%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WAB is valuated quite expensively with a Price/Earnings ratio of 27.83.
The rest of the industry has a similar Price/Earnings ratio as WAB.
WAB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.89 indicates a rather expensive valuation of WAB.
WAB's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, WAB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.83 | ||
| Fwd PE | 23.89 |
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.
69.29% of the companies in the same industry are more expensive than WAB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.13 | ||
| EV/EBITDA | 17.24 |
4.3 Compensation for Growth
WAB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 18.32% in the coming years.
PEG (NY)0.93
PEG (5Y)3.06
EPS Next 2Y20.49%
EPS Next 3Y18.32%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, WAB is not a good candidate for dividend investing.
WAB's Dividend Yield is comparable with the industry average which is at 1.65.
Compared to an average S&P500 Dividend Yield of 2.28, WAB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of WAB is nicely growing with an annual growth rate of 7.39%!
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)7.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
12.94% 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.
DP12.94%
EPS Next 2Y20.49%
EPS Next 3Y18.32%
WABTEC CORP
NYSE:WAB (1/21/2025, 8:04:00 PM)
After market: 205.65 0 (0%)205.65
+3.96 (+1.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.49%
Inst Owner Change0.11%
Ins Owners1.03%
Ins Owner Change-0.81%
Market Cap35.35B
Analysts78.75
Price Target213.19 (3.67%)
Short Float %1.42%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.69
Dividend Growth(5Y)7.39%
DP12.94%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.72%
Min EPS beat(2)3.01%
Max EPS beat(2)4.42%
EPS beat(4)3
Avg EPS beat(4)7.49%
Min EPS beat(4)-3.36%
Max EPS beat(4)25.9%
EPS beat(8)7
Avg EPS beat(8)7.09%
EPS beat(12)9
Avg EPS beat(12)4.71%
EPS beat(16)12
Avg EPS beat(16)3.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)-0.94%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)3.14%
Revenue beat(8)6
Avg Revenue beat(8)2.35%
Revenue beat(12)6
Avg Revenue beat(12)0.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.09%
PT rev (1m)0%
PT rev (3m)15.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.78%
EPS NY rev (1m)0%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.83 | ||
| Fwd PE | 23.89 | ||
| P/S | 3.42 | ||
| P/FCF | 22.13 | ||
| P/OCF | 19.67 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.24 |
EPS(TTM)7.39
EY3.59%
EPS(NY)8.61
Fwd EY4.19%
FCF(TTM)9.29
FCFY4.52%
OCF(TTM)10.45
OCFY5.08%
SpS60.1
BVpS59.63
TBVpS-8.91
PEG (NY)0.93
PEG (5Y)3.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 10.33% | ||
| ROCE | 11.26% | ||
| ROIC | 8.48% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 45.79% | ||
| OM | 16.31% | ||
| PM (TTM) | 10.25% | ||
| GM | 32.86% | ||
| FCFM | 15.46% |
ROA(3y)3.57%
ROA(5y)2.94%
ROE(3y)6.5%
ROE(5y)5.37%
ROIC(3y)5.7%
ROIC(5y)4.92%
ROICexc(3y)5.91%
ROICexc(5y)5.11%
ROICexgc(3y)34.13%
ROICexgc(5y)30.05%
ROCE(3y)7.56%
ROCE(5y)6.54%
ROICexcg growth 3Y17.97%
ROICexcg growth 5Y29.17%
ROICexc growth 3Y19.72%
ROICexc growth 5Y5.35%
OM growth 3Y9.44%
OM growth 5Y5.45%
PM growth 3Y15.48%
PM growth 5Y4.5%
GM growth 3Y3.23%
GM growth 5Y1.93%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 37.38% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.95% | ||
| Profit Quality | 150.8% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.85 |
F-Score8
WACC9.47%
ROIC/WACC0.9
Cap/Depr(3y)30.87%
Cap/Depr(5y)33.52%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.89%
Profit Quality(3y)144.86%
Profit Quality(5y)169.23%
High Growth Momentum
Growth
EPS 1Y (TTM)29.88%
EPS 3Y16.3%
EPS 5Y9.08%
EPS Q2Q%17.65%
EPS Next Y29.88%
EPS Next 2Y20.49%
EPS Next 3Y18.32%
EPS Next 5Y16.43%
Revenue 1Y (TTM)9.23%
Revenue growth 3Y8.6%
Revenue growth 5Y17.27%
Sales Q2Q%4.43%
Revenue Next Year8.31%
Revenue Next 2Y7.18%
Revenue Next 3Y6.79%
Revenue Next 5Y6.95%
EBIT growth 1Y28.14%
EBIT growth 3Y18.85%
EBIT growth 5Y23.66%
EBIT Next Year40.64%
EBIT Next 3Y18.04%
EBIT Next 5Y14.75%
FCF growth 1Y97.6%
FCF growth 3Y16.18%
FCF growth 5Y35.6%
OCF growth 1Y90.83%
OCF growth 3Y15.29%
OCF growth 5Y30.72%