WABTEC CORP (WAB) Stock Fundamental Analysis
USA - NYSE:WAB - US9297401088 - Common Stock
203.92 USD
-0.35 (-0.17%)
203.92 USD
0 (0%)
Overall WAB gets a fundamental rating of 5 out of 10. We evaluated WAB against 130 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.
In the past 5 years WAB has always 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 (5.48%) is better than 61.54% of its industry peers.
With a decent Return On Equity value of 10.68%, WAB is doing good in the industry, outperforming 61.54% of the companies in the same industry.
WAB has a Return On Invested Capital (8.04%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAB is below the industry average of 10.25%.
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
WAB has a better Profit Margin (10.94%) than 78.46% of its industry peers.
WAB's Profit Margin has improved in the last couple of years.
WAB has a Operating Margin of 17.22%. This is in the better half of the industry: WAB outperforms 79.23% of its industry peers.
In the last couple of years the Operating Margin of WAB has grown nicely.
Looking at the Gross Margin, with a value of 33.96%, WAB is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
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
WAB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WAB has less shares outstanding
WAB has less shares outstanding than it did 5 years ago.
WAB has a better debt/assets ratio than last year.
2.2 Solvency
WAB has an Altman-Z score of 3.12. This indicates that WAB is financially healthy and has little risk of bankruptcy at the moment.
WAB's Altman-Z score of 3.12 is in line compared to the rest of the industry. WAB outperforms 54.62% 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 60.00% 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.
With a Debt to Equity ratio value of 0.46, WAB perfoms like the industry average, outperforming 48.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.86
WACC9.4%
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.
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.
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.
The Earnings Per Share has been growing by 12.44% on average over the past years. This is quite good.
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
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
Based on the Price/Earnings ratio of 23.85, 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.
The average S&P500 Price/Earnings ratio is at 25.89. WAB is around the same levels.
Based on the Price/Forward Earnings ratio of 19.87, the valuation of WAB can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as WAB.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, WAB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
WAB's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 27.49 | ||
| EV/EBITDA | 16.86 |
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.
A more expensive valuation may be justified as WAB's earnings are expected to grow with 15.29% in the coming years.
PEG (NY)1.18
PEG (5Y)1.92
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 1.87, 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
On average, the dividend of WAB grows each year by 7.24%, which is quite nice.
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.
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%
203.92
-0.35 (-0.17%)
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 Cap34.86B
Revenue(TTM)10.79B
Net Income(TTM)1.18B
Analysts78.82
Price Target233.4 (14.46%)
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)1.86%
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 | 23.85 | ||
| Fwd PE | 19.87 | ||
| P/S | 3.23 | ||
| P/FCF | 27.49 | ||
| P/OCF | 23.4 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.86 |
EPS(TTM)8.55
EY4.19%
EPS(NY)10.27
Fwd EY5.03%
FCF(TTM)7.42
FCFY3.64%
OCF(TTM)8.72
OCFY4.27%
SpS63.09
BVpS64.63
TBVpS-13.75
PEG (NY)1.18
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 | 3.12 |
F-Score6
WACC9.4%
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 23.85 and the Price/Book (PB) ratio is 3.16.
How financially healthy is WABTEC CORP?
The financial health rating of WABTEC CORP (WAB) is 4 / 10.