WABTEC CORP (WAB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WAB - US9297401088 - Common Stock
216.14 USD
+2.54 (+1.19%)
216.14 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WAB. WAB was compared to 130 industry peers in the Machinery industry. While WAB has a great profitability rating, there are some minor concerns on its financial health. WAB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WAB had positive earnings in the past year.
In the past year WAB had a positive cash flow from operations.
WAB had positive earnings in each of the past 5 years.
In the past 5 years WAB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, WAB is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
WAB has a better Return On Equity (10.68%) than 63.08% of its industry peers.
The Return On Invested Capital of WAB (8.04%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WAB is below the industry average of 10.32%.
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
With a decent Profit Margin value of 10.94%, WAB is doing good in 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.
With an excellent Operating Margin value of 17.22%, WAB belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
WAB's Operating Margin has improved in the last couple of years.
WAB has a better Gross Margin (33.96%) than 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
WAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WAB has been reduced compared to 1 year ago.
Compared to 5 years ago, WAB has less shares outstanding
WAB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that WAB is not in any danger for bankruptcy at the moment.
WAB has a Altman-Z score (3.21) which is comparable to the rest of the industry.
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 58.46% 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 | 3.21 |
ROIC/WACC0.85
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.42 indicates that WAB should not have too much problems paying its short term obligations.
WAB has a worse Current ratio (1.42) than 76.15% of its industry peers.
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: 80.77% 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.
Measured over the past years, WAB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.44% on average per year.
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
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.
The Revenue is expected to grow by 5.53% on average over the next years.
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.
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 25.28, which means the current valuation is very expensive for WAB.
WAB's Price/Earnings ratio is in line with the industry average.
WAB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.38, which is the current average of the S&P500 Index.
WAB is valuated rather expensively with a Price/Forward Earnings ratio of 21.08.
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 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 21.08 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.14 | ||
| EV/EBITDA | 17.56 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as WAB's earnings are expected to grow with 15.18% in the coming years.
PEG (NY)1.25
PEG (5Y)2.03
EPS Next 2Y16.7%
EPS Next 3Y15.18%
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 1.00, 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 1.87.
| 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 2Y16.7%
EPS Next 3Y15.18%
216.14
+2.54 (+1.19%)
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-0.77%
Market Cap36.95B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts77.78
Price Target236.13 (9.25%)
Short Float %1.27%
Short Ratio2.46
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)3.07%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 21.08 | ||
| P/S | 3.43 | ||
| P/FCF | 29.14 | ||
| P/OCF | 24.8 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.56 |
EPS(TTM)8.55
EY3.96%
EPS(NY)10.25
Fwd EY4.74%
FCF(TTM)7.42
FCFY3.43%
OCF(TTM)8.72
OCFY4.03%
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 | 3.21 |
F-Score6
WACC9.42%
ROIC/WACC0.85
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 25.28 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.