WABTEC CORP (WAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAB - US9297401088 - Common Stock
208.55 USD
+0.8 (+0.39%)
208.55 USD
0 (0%)
WAB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. WAB has an excellent profitability rating, 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.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
WAB has a better Return On Assets (5.48%) than 63.85% of its industry peers.
WAB has a Return On Equity of 10.68%. This is in the better half of the industry: WAB outperforms 62.31% of its industry peers.
WAB has a Return On Invested Capital of 8.04%. This is comparable to the rest of the industry: WAB outperforms 59.23% of its industry peers.
WAB had an Average Return On Invested Capital over the past 3 years of 6.98%. This is below the industry average of 10.35%.
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
With a decent Profit Margin value of 10.94%, WAB is doing good in the industry, outperforming 79.23% of the companies in the same industry.
WAB's Profit Margin has improved in the last couple of years.
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.
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.
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
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.
WAB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WAB has an improved debt to assets ratio.
2.2 Solvency
WAB has an Altman-Z score of 3.17. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB has a Altman-Z score of 3.17. This is comparable to the rest of the industry: WAB outperforms 55.38% 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.
WAB has a Debt to Equity ratio of 0.46. This is comparable 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 | 3.17 |
ROIC/WACC0.88
WACC9.14%
2.3 Liquidity
A Current Ratio of 1.42 indicates that WAB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.42, WAB is not doing good in the industry: 76.92% 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.
With a Quick ratio value of 0.75, WAB is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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.
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.
The Revenue is expected to grow by 5.53% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 24.39, which indicates a rather expensive current valuation of WAB.
The rest of the industry has a similar Price/Earnings ratio as WAB.
The average S&P500 Price/Earnings ratio is at 26.31. WAB is around the same levels.
The Price/Forward Earnings ratio is 20.32, which indicates a rather expensive current valuation of WAB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAB is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.56. WAB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 20.32 |
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 | 28.12 | ||
| EV/EBITDA | 17.2 |
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 15.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)1.96
EPS Next 2Y16.76%
EPS Next 3Y15.29%
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 1.90, WAB has a dividend in line with its industry peers.
With a Dividend Yield of 0.49, WAB pays less dividend than the S&P500 average, which is at 2.32.
| 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
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%
208.55
+0.8 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.5%
Inst Owner Change-0.56%
Ins Owners0.64%
Ins Owner Change-0.89%
Market Cap35.65B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts78.82
Price Target236.13 (13.22%)
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)1.17%
PT rev (3m)3.05%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 20.32 | ||
| P/S | 3.31 | ||
| P/FCF | 28.12 | ||
| P/OCF | 23.93 | ||
| P/B | 3.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.2 |
EPS(TTM)8.55
EY4.1%
EPS(NY)10.27
Fwd EY4.92%
FCF(TTM)7.42
FCFY3.56%
OCF(TTM)8.72
OCFY4.18%
SpS63.08
BVpS64.62
TBVpS-13.75
PEG (NY)1.21
PEG (5Y)1.96
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 | 3.17 |
F-Score6
WACC9.14%
ROIC/WACC0.88
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 24.39 and the Price/Book (PB) ratio is 3.23.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.