WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
203.77 USD
-2.25 (-1.09%)
203.77 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 has an average financial health and profitability rating. WAB is not valued too expensively and it also shows 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.
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
WAB has a Return On Assets (5.48%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.68%, WAB is in line with its industry, outperforming 60.00% of the companies in the same industry.
WAB has a Return On Invested Capital (8.04%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WAB is below the industry average of 10.24%.
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 77.69% of its industry peers.
In the last couple of years the Profit Margin of WAB has grown nicely.
WAB's Operating Margin of 17.22% is fine compared to the rest of the industry. WAB outperforms 78.46% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
WAB has a Gross Margin (33.96%) which 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 | 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.
The number of shares outstanding for WAB has been reduced compared to 1 year ago.
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 3.14. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB has a Altman-Z score of 3.14. This is comparable to the rest of the industry: WAB outperforms 52.31% of 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.
WAB has a Debt to FCF ratio of 4.17. This is comparable to the rest of the industry: WAB outperforms 59.23% 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.
WAB has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.14 |
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.
WAB has a worse Current ratio (1.42) than 76.92% 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 Quick ratio of 0.75. This is in the lower half of the industry: WAB underperforms 78.46% 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.
WAB shows a small growth in Revenue. In the last year, the Revenue has grown by 4.40%.
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 Y20.42%
EPS Next 2Y16.37%
EPS Next 3Y14.77%
EPS Next 5Y12.64%
Revenue Next Year6.12%
Revenue Next 2Y6.78%
Revenue Next 3Y6.14%
Revenue Next 5Y5.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 23.83, which indicates a rather expensive current valuation of WAB.
WAB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WAB to the average of the S&P500 Index (25.67), we can say WAB is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.98, WAB is valued on the expensive side.
WAB's Price/Forward Earnings ratio is in line with the industry average.
WAB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 19.98 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
WAB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.47 | ||
| EV/EBITDA | 17.01 |
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 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)1.92
EPS Next 2Y16.37%
EPS Next 3Y14.77%
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 1.83, WAB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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 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
13.90% of the earnings are spent on dividend by WAB. This is a low number and sustainable payout ratio.
WAB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.9%
EPS Next 2Y16.37%
EPS Next 3Y14.77%
203.77
-2.25 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-2.23%
Ins Owners0.64%
Ins Owner Change-0.94%
Market Cap34.83B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts77.5
Price Target233.4 (14.54%)
Short Float %1.48%
Short Ratio2.57
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)1.88%
PT rev (3m)3.43%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)0.05%
EPS NY rev (3m)2.79%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.83 | ||
| Fwd PE | 19.98 | ||
| P/S | 3.23 | ||
| P/FCF | 27.47 | ||
| P/OCF | 23.38 | ||
| P/B | 3.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.01 |
EPS(TTM)8.55
EY4.2%
EPS(NY)10.2
Fwd EY5%
FCF(TTM)7.42
FCFY3.64%
OCF(TTM)8.72
OCFY4.28%
SpS63.09
BVpS64.63
TBVpS-13.75
PEG (NY)1.17
PEG (5Y)1.92
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 | 3.14 |
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 Y20.42%
EPS Next 2Y16.37%
EPS Next 3Y14.77%
EPS Next 5Y12.64%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y9.92%
Revenue growth 5Y4.84%
Sales Q2Q%8.37%
Revenue Next Year6.12%
Revenue Next 2Y6.78%
Revenue Next 3Y6.14%
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 6 / 10.
What are the PE and PB ratios of WABTEC CORP (WAB) stock?
The Price/Earnings (PE) ratio for WABTEC CORP (WAB) is 23.83 and the Price/Book (PB) ratio is 3.15.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.