NYSE:WAB

Stock Analysis Report

Executive Summary

Wabtec Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit vehicle industries worldwide.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Wabtec's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WAB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

WAB

-1.2%

US Machinery

0.9%

US Market


1 Year Return

-9.7%

WAB

16.3%

US Machinery

15.5%

US Market

Return vs Industry: WAB underperformed the US Machinery industry which returned 16.3% over the past year.

Return vs Market: WAB underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

WABIndustryMarket
7 Day0.4%-1.2%0.9%
30 Day13.6%6.5%4.7%
90 Day16.0%14.8%6.6%
1 Year-9.1%-9.7%18.5%16.3%18.1%15.5%
3 Year-7.3%-8.9%45.9%36.7%48.0%38.5%
5 Year-11.3%-13.6%57.5%38.4%62.1%44.2%

Price Volatility Vs. Market

How volatile is Wabtec's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wabtec undervalued compared to its fair value and its price relative to the market?

33.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAB ($78.87) is trading below our estimate of fair value ($118.04)

Significantly Below Fair Value: WAB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WAB is poor value based on its PE Ratio (51.5x) compared to the Machinery industry average (22.2x).

PE vs Market: WAB is poor value based on its PE Ratio (51.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: WAB is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: WAB is good value based on its PB Ratio (1.6x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Wabtec forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

54.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAB's forecast earnings growth (54.2% per year) is above the savings rate (2.7%).

Earnings vs Market: WAB's earnings (54.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WAB's revenue (4.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WAB's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WAB's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Wabtec performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAB has large one-off items impacting its financial results.

Growing Profit Margin: WAB's current net profit margins (3.2%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: WAB's earnings have declined by -10.5% per year over the past 5 years.

Accelerating Growth: WAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WAB had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Machinery industry average (13.5%).


Return on Equity

High ROE: WAB's Return on Equity (2.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wabtec's financial position?


Financial Position Analysis

Short Term Liabilities: WAB's short term assets ($4.4B) exceeds its short term liabilities ($3.2B)

Long Term Liabilities: WAB's short term assets ($4.4B) do not cover its long term liabilities (6.0B)


Debt to Equity History and Analysis

Debt Level: WAB's debt to equity ratio (48.8%) is considered high.

Reducing Debt: WAB's debt to equity ratio has increased from 29.3% to 48.8% over the past 5 years.

Debt Coverage: WAB's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: WAB's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: WAB has a low level of unsold assets or inventory.

Debt Coverage by Assets: WAB's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Wabtec's current dividend yield, its reliability and sustainability?

0.61%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: WAB's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WAB's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: WAB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WAB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WAB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WAB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Wabtec's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Rafael Santana (47yo)

0.3yrs

Tenure

0

Mr. Rafael O. Santana is the President, Chief Executive Officer and Director of Wabtec Corporation since 2019. He serves as Executive Vice President at Westinghouse Air Brake Technologies Corporation (doin ...


Management Age and Tenure

2.9yrs

Average Tenure

55yo

Average Age

Experienced Management: WAB's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

70yo

Average Age

Experienced Board: WAB's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,193,393,59012 Aug 19
General Electric Company
EntityCompany
Shares16,969,692
Max PriceUS$70.33
BuyUS$503,52024 May 19
Davideco, Inc
EntityCompany
Shares8,000
Max PriceUS$62.94
BuyUS$193,53022 May 19
David DeNinno
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,000
Max PriceUS$64.51
BuyUS$652,60022 May 19
Albert Neupaver
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceUS$65.26
SellUS$106,37307 May 19
Jamie Miller
EntityIndividual
Shares1,451
Max PriceUS$73.31
SellUS$27,963,59007 May 19
Trian Fund Management, L.P.
EntityCompany
Shares380,531
Max PriceUS$74.26
SellUS$227,03628 Feb 19
Linda Harty
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$75.72

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 52.6%.


Management Team

  • Al Neupaver (68yo)

    Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: US$4.45m
  • Tim Wesley (57yo)

    • Tenure: 0.6yrs
  • Scott Wahlstrom (55yo)

    Executive Vice President of Human Resources

    • Tenure: 2.9yrs
    • Compensation: US$756.05k
  • Dave DeNinno (63yo)

    Executive VP

    • Tenure: 7.8yrs
    • Compensation: US$2.40m
  • Pat Dugan (53yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$2.86m
  • R. Cox (51yo)

    Executive Vice President of Corporate Development

    • Tenure: 2.9yrs
  • Kristine Kubacki

    Vice President of Investor Relations

    • Tenure: 0.6yrs
  • Rafael Santana (47yo)

    CEO, President & Director

    • Tenure: 0.3yrs
  • John Mastalerz (52yo)

    Senior VP of Finance

    • Tenure: 3.8yrs
  • Dominique Malenfant (57yo)

    Senior VP & Global Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Bill Kassling (75yo)

    Lead Director

    • Tenure: 6.5yrs
    • Compensation: US$259.98k
  • Al Neupaver (68yo)

    Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: US$4.45m
  • Lee Foster (72yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$249.98k
  • Emilio Fernandez (74yo)

    Independent Vice Chairman

    • Tenure: 21.7yrs
    • Compensation: US$244.98k
  • Lindy Harty (58yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$249.98k
  • Michael Howell (72yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$234.98k
  • Philippe Alfroid (74yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$234.98k
  • Erwan Faiveley (40yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$234.98k
  • Brian Hehir (65yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$234.98k
  • Rafael Santana (47yo)

    CEO, President & Director

    • Tenure: 0.3yrs

Company Information

Wabtec Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wabtec Corporation
  • Ticker: WAB
  • Exchange: NYSE
  • Founded: 1869
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$15.118b
  • Shares outstanding: 191.68m
  • Website: https://www.wabtec.com

Number of Employees


Location

  • Wabtec Corporation
  • 30 Isabella Street
  • Pittsburgh
  • Pennsylvania
  • 15212
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WABNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1995
WB2DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1995
WAB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1995
WABWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1995

Biography

Wabtec Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit vehicle industries worldwide. The company’s Freight segment manufactures and service ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 23:50
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.