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Wabtec

NYSE:WAB
Snowflake Description

High growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WAB
NYSE
$12B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Wabtec Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit vehicle industries worldwide. The last earnings update was 54 days ago. More info.


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WAB Share Price and Events
7 Day Returns
1.1%
NYSE:WAB
1.4%
US Machinery
-0.8%
US Market
1 Year Returns
-13.1%
NYSE:WAB
1.8%
US Machinery
7%
US Market
WAB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wabtec (WAB) 1.1% 9.2% 6.3% -13.1% -3.9% 3.9%
US Machinery 1.4% 9.3% 11.6% 1.8% 51.4% 34%
US Market -0.8% 2.7% 7.5% 7% 37.9% 47%
1 Year Return vs Industry and Market
  • WAB underperformed the Machinery industry which returned 1.8% over the past year.
  • WAB underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
WAB
Industry
5yr Volatility vs Market

WAB Value

 Is Wabtec undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wabtec to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wabtec.

NYSE:WAB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WAB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.068 (1 + (1- 21%) (31.03%))
1.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.221 * 5.96%)
10.01%

Discounted Cash Flow Calculation for NYSE:WAB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wabtec is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WAB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.01%)
2019 491.69 Analyst x4 446.96
2020 824.23 Analyst x3 681.09
2021 1,262.00 Analyst x1 947.97
2022 1,643.32 Est @ 30.22% 1,122.11
2023 2,004.36 Est @ 21.97% 1,244.13
2024 2,329.02 Est @ 16.2% 1,314.15
2025 2,612.17 Est @ 12.16% 1,339.83
2026 2,855.87 Est @ 9.33% 1,331.58
2027 3,065.76 Est @ 7.35% 1,299.41
2028 3,248.59 Est @ 5.96% 1,251.64
Present value of next 10 years cash flows $10,978.88
NYSE:WAB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,248.59 × (1 + 2.73%) ÷ (10.01% – 2.73%)
$45,858.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $45,858.74 ÷ (1 + 10.01%)10
$17,668.81
NYSE:WAB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,978.88 + $17,668.81
$28,647.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $28,647.69 / 162.47
$176.33
NYSE:WAB Discount to Share Price
Calculation Result
Value per share (USD) From above. $176.33
Current discount Discount to share price of $76.50
= -1 x ($76.50 - $176.33) / $176.33
56.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Wabtec is available for.
Intrinsic value
>50%
Share price is $76.5 vs Future cash flow value of $176.33
Current Discount Checks
For Wabtec to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Wabtec's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Wabtec's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wabtec's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wabtec's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WAB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.06
NYSE:WAB Share Price ** NYSE (2019-04-22) in USD $76.5
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 21.67x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wabtec.

NYSE:WAB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WAB Share Price ÷ EPS (both in USD)

= 76.5 ÷ 3.06

24.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wabtec is overvalued based on earnings compared to the US Machinery industry average.
  • Wabtec is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Wabtec's expected growth come at a high price?
Raw Data
NYSE:WAB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
51%per year
United States of America Machinery Industry PEG Ratio Median Figure of 83 Publicly-Listed Machinery Companies 1.61x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:WAB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.97x ÷ 51%

0.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wabtec is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Wabtec's assets?
Raw Data
NYSE:WAB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $29.66
NYSE:WAB Share Price * NYSE (2019-04-22) in USD $76.5
United States of America Machinery Industry PB Ratio Median Figure of 129 Publicly-Listed Machinery Companies 2.45x
United States of America Market PB Ratio Median Figure of 5,186 Publicly-Listed Companies 1.91x
NYSE:WAB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WAB Share Price ÷ Book Value per Share (both in USD)

= 76.5 ÷ 29.66

2.58x

* Primary Listing of Wabtec.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wabtec is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Wabtec's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Wabtec has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WAB Future Performance

 How is Wabtec expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
51%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wabtec expected to grow at an attractive rate?
  • Wabtec's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Wabtec's earnings growth is expected to exceed the United States of America market average.
  • Wabtec's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WAB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WAB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 51%
NYSE:WAB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 30.2%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WAB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WAB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 10,058 1,462 1
2020-12-31 9,582 1,041 932 10
2019-12-31 8,394 732 657 10
NYSE:WAB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 4,364 315 294
2018-09-30 4,321 200 309
2018-06-30 4,201 270 288
2018-03-31 4,022 239 276
2017-12-31 3,882 189 261
2017-09-30 3,566 230 250
2017-06-30 3,284 223 265
2017-03-31 3,075 349 284
2016-12-31 2,931 451 304
2016-09-30 3,004 440 368
2016-06-30 3,138 551 385
2016-03-31 3,261 480 396

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wabtec's earnings are expected to grow significantly at over 20% yearly.
  • Wabtec's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WAB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Wabtec Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WAB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 4.83 5.00 4.55 5.00
2019-12-31 3.54 4.20 3.00 5.00
NYSE:WAB Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.06
2018-09-30 3.22
2018-06-30 3.01
2018-03-31 2.89
2017-12-31 2.74
2017-09-30 2.66
2017-06-30 2.86
2017-03-31 3.11
2016-12-31 3.36
2016-09-30 4.00
2016-06-30 4.12
2016-03-31 4.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Wabtec will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Wabtec's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wabtec has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WAB Past Performance

  How has Wabtec performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wabtec's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wabtec's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Wabtec's 1-year earnings growth exceeds its 5-year average (12.5% vs -4.2%)
  • Wabtec's earnings growth has not exceeded the US Machinery industry average in the past year (12.5% vs 27.9%).
Earnings and Revenue History
Wabtec's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wabtec Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WAB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 4,363.55 294.09 564.60 87.45
2018-09-30 4,321.21 309.18 603.30 85.22
2018-06-30 4,201.33 288.26 580.58 89.80
2018-03-31 4,021.90 275.91 533.68 93.75
2017-12-31 3,881.76 261.48 473.02 95.17
2017-09-30 3,566.20 249.73 429.71 90.62
2017-06-30 3,283.84 265.36 388.27 82.20
2017-03-31 3,075.19 283.76 360.15 76.89
2016-12-31 2,931.19 303.97 364.07 71.38
2016-09-30 3,004.06 367.75 332.52 71.63
2016-06-30 3,138.01 384.64 343.97 72.58
2016-03-31 3,261.44 395.53 352.35 72.30
2015-12-31 3,308.00 397.43 347.37 71.21
2015-09-30 3,296.02 388.27 349.09 70.18
2015-06-30 3,283.76 378.99 355.24 69.33
2015-03-31 3,167.80 366.32 339.23 65.80
2014-12-31 3,044.45 350.27 324.54 61.89
2014-09-30 2,905.07 331.63 306.46 56.31
2014-06-30 2,739.20 315.41 281.51 50.84
2014-03-31 2,646.13 301.25 272.40 47.90
2013-12-31 2,566.39 290.78 262.72 46.29
2013-09-30 2,495.31 281.53 256.35 43.80
2013-06-30 2,451.51 270.65 252.69 43.63
2013-03-31 2,423.32 260.77 247.98 42.49
2012-12-31 2,391.12 250.47 245.71 41.31
2012-09-30 2,315.36 232.08 238.03 40.33
2012-06-30 2,226.61 215.75 235.97 39.47

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wabtec has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wabtec used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Wabtec's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wabtec's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wabtec has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WAB Health

 How is Wabtec's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wabtec's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wabtec is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wabtec's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wabtec's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wabtec Company Filings, last reported 3 months ago.

NYSE:WAB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,869.08 3,856.87 580.91
2018-09-30 2,910.35 3,865.10 411.38
2018-06-30 2,874.63 1,884.92 245.57
2018-03-31 2,988.23 1,920.63 249.89
2017-12-31 2,828.53 1,870.53 233.40
2017-09-30 2,736.37 1,873.90 228.08
2017-06-30 2,584.37 1,985.30 328.52
2017-03-31 2,368.77 1,872.97 280.18
2016-12-31 2,976.83 1,892.78 398.48
2016-09-30 1,730.49 825.61 250.38
2016-06-30 1,725.84 744.25 302.94
2016-03-31 1,678.39 801.98 262.77
2015-12-31 1,701.34 696.71 226.19
2015-09-30 1,985.44 451.02 208.24
2015-06-30 1,956.33 405.01 264.84
2015-03-31 1,817.35 426.10 249.14
2014-12-31 1,808.30 521.20 425.85
2014-09-30 1,789.61 524.43 212.54
2014-06-30 1,765.69 504.39 225.91
2014-03-31 1,680.39 453.23 295.10
2013-12-31 1,587.17 453.71 285.76
2013-09-30 1,517.05 543.03 281.01
2013-06-30 1,405.71 399.74 214.51
2013-03-31 1,331.27 421.72 225.34
2012-12-31 1,282.02 321.97 215.77
2012-09-30 1,231.02 437.40 282.06
2012-06-30 1,154.15 446.73 234.11
  • Wabtec's level of debt (134.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.6% vs 134.4% today).
  • Debt is not well covered by operating cash flow (8.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5x coverage).
X
Financial health checks
We assess Wabtec's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wabtec has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WAB Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.63%
Current annual income from Wabtec dividends. Estimated to be 0.61% next year.
If you bought $2,000 of Wabtec shares you are expected to receive $13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wabtec's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Wabtec's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Upcoming dividend payment

Purchase Wabtec before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WAB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WAB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31 0.47 1.00
NYSE:WAB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-10 0.480 0.629
2019-01-11 0.480 0.662
2018-10-16 0.480 0.589
2018-07-11 0.480 0.448
2018-04-19 0.480 0.499
2018-01-29 0.480 0.601
2017-10-31 0.480 0.612
2017-05-10 0.480 0.611
2017-04-12 0.400 0.488
2017-01-25 0.400 0.493
2016-10-27 0.400 0.479
2016-05-11 0.400 0.533
2016-04-19 0.320 0.394
2016-01-26 0.320 0.443
2015-10-27 0.320 0.442
2015-05-18 0.320 0.336
2015-04-28 0.240 0.242
2015-04-22 0.240 0.246
2014-10-15 0.240 0.271
2014-05-21 0.240 0.296
2014-04-30 0.160 0.214
2014-01-30 0.160 0.209
2013-05-14 0.160 0.259
2013-05-01 0.100 0.189
2013-01-28 0.100 0.202
2012-11-01 0.100 0.232
2012-05-16 0.100 0.257
2012-04-26 0.060 0.158
2012-01-20 0.060 0.162
2011-10-25 0.060 0.177
2011-05-11 0.060 0.197
2011-04-19 0.020 0.057
2011-01-31 0.020 0.067
2010-10-28 0.020 0.079
2010-07-28 0.020 0.087
2010-05-03 0.020 0.092
2010-02-03 0.020 0.095
2009-10-30 0.020 0.100
2009-08-06 0.020 0.106
2009-07-24 0.020 0.118
2009-04-23 0.020 0.116

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wabtec is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Wabtec is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Wabtec's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Wabtec's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Wabtec's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Wabtec's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wabtec afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wabtec has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WAB Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ray Betler
COMPENSATION $3,459,532
AGE 62
TENURE AS CEO 4.9 years
CEO Bio

Mr. Raymond T. Betler, also known as Ray, has been the President of Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation since May 17, 2013 and has been its Chief Executive Officer since May 14, 2014. Mr. Betler has 30 years of experience in the transportation industry. He served as the Chief Operating Officer of Wabtec Corporation from December 2010 to May 14, 2014 and also served as its Vice President and Group Executive of Corporate Officer from August 2008 to December 2010. He served as the President of Total Transit Systems for Bombardier Transportation from 2004 to 2008. He served as the President of London Underground concession project from 2002 to 2004. He served as the President at Aeg Monorail Systems. He joined the Westinghouse Transportation Division as a Design Engineer in 1979 and served as the President of the unit, which became part of Bombardier Transportation, in 1994. He held various executive roles from 1979 to 2004 within Bombardier Transportations and its predecessors (Westinghouse, AEG Transportation and ABB Daimler-Benz Transportation (Adtranz)). He has been Vice Chairman of Supervisory Board and Member of Supervisory Board at Faiveley Transport S.A. since November 30, 2016. He has been Director of National Safety Council since September 28, 2015, Wabtec Corporation since May 14, 2014. He has been Director of CNX Midstream GP LLC since October 18, 2017. He serves as a Director at Dollar Bank FSB. He serves as a Trustee of Carnegie Institute. Mr. Betler holds a B.S. degree in Electrical Engineering and Economics as well as a Degree in Administration/Management Science, both from Carnegie Mellon University. He has attended graduate classes at Katz Business School at the University of Pittsburgh. He has certificates from the Executive Development Program at IMD in Lausanne, Switzerland and the Finance for Executives Program at INSEAD in Fontainebleau, France.

CEO Compensation
  • Ray's compensation has been consistent with company performance over the past year.
  • Ray's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Wabtec management team in years:

3.3
Average Tenure
56
Average Age
  • The tenure for the Wabtec management team is about average.
Management Team

Al Neupaver

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
67

Ray Betler

TITLE
President
COMPENSATION
$3M
AGE
62
TENURE
4.9 yrs

Pat Dugan

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
52
TENURE
5.3 yrs

Dave DeNinno

TITLE
Executive VP
COMPENSATION
$1M
AGE
62
TENURE
7.2 yrs

Scott Wahlstrom

TITLE
Executive Vice President of Human Resources
COMPENSATION
$756K
AGE
54
TENURE
2.3 yrs

John Mastalerz

TITLE
Senior VP of Finance
AGE
51
TENURE
3.3 yrs

Dominique Malenfant

TITLE
Senior VP & Global Technology Officer
AGE
56
TENURE
0.2 yrs

Kristine Kubacki

TITLE
Vice President of Investor Relations

R. Cox

TITLE
Executive Vice President of Corporate Development
AGE
50
TENURE
2.3 yrs

Tim Wesley

TITLE
AGE
56
Board of Directors Tenure

Average tenure and age of the Wabtec board of directors in years:

8.8
Average Tenure
69
Average Age
  • The tenure for the Wabtec board of directors is about average.
Board of Directors

Ray Betler

TITLE
President
COMPENSATION
$3M
AGE
62
TENURE
4.9 yrs

Emilio Fernandez

TITLE
Vice Chairman
COMPENSATION
$245K
AGE
73
TENURE
21.1 yrs

Al Neupaver

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
67
TENURE
5.9 yrs

Lee Foster

TITLE
Independent Director
COMPENSATION
$250K
AGE
71
TENURE
20.3 yrs

Lindy Harty

TITLE
Director
COMPENSATION
$250K
AGE
57
TENURE
2.8 yrs

Bill Kassling

TITLE
Lead Director
COMPENSATION
$260K
AGE
74
TENURE
5.9 yrs

Robert Brooks

TITLE
Independent Director
COMPENSATION
$235K
AGE
74
TENURE
29.3 yrs

Michael W. Howell

TITLE
Independent Director
COMPENSATION
$235K
AGE
71
TENURE
16.3 yrs

Brian Hehir

TITLE
Independent Director
COMPENSATION
$235K
AGE
64
TENURE
11.8 yrs

Erwan Faiveley

TITLE
Independent Director
COMPENSATION
$235K
AGE
39
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • Wabtec insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Feb 19 Sell Linda Harty Individual 27. Feb 19 27. Feb 19 -3,000 $75.72 $-227,036
21. Aug 18 Sell Robert Brooks Individual 21. Aug 18 21. Aug 18 -20,000 $110.56 $-2,211,258
14. Aug 18 Sell Emilio Fernandez Individual 09. Aug 18 09. Aug 18 -16,000 $112.89 $-1,796,254
08. Aug 18 Sell David DeNinno Individual 06. Aug 18 06. Aug 18 -6,000 $113.44 $-680,628
02. Aug 18 Sell Scott Wahlstrom Individual 01. Aug 18 01. Aug 18 -10,000 $110.00 $-1,100,000
30. Jul 18 Sell William Kassling Individual 26. Jul 18 26. Jul 18 -55,000 $110.38 $-6,007,116
30. Jul 18 Sell Patrick Dugan Individual 26. Jul 18 26. Jul 18 -7,000 $109.08 $-763,579
04. Jun 18 Sell William Kassling Individual 31. May 18 31. May 18 -55,000 $97.79 $-5,378,632
31. May 18 Sell Emilio Fernandez Individual 30. May 18 30. May 18 -10,000 $97.70 $-976,950
30. May 18 Sell Albert Neupaver Individual 29. May 18 29. May 18 -65,000 $97.27 $-6,286,464
29. May 18 Sell Brooks Family Foundation, Endowment Arm Company 25. May 18 25. May 18 -3,500 $97.60 $-341,600
24. May 18 Sell Brian Hehir Individual 23. May 18 23. May 18 -2,952 $96.35 $-284,437
X
Management checks
We assess Wabtec's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wabtec has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WAB News

Simply Wall St News

Should You Think About Buying Wabtec Corporation (NYSE:WAB) Now?

saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain

Simply Wall St -

Have Insiders Been Selling Wabtec Corporation (NYSE:WAB) Shares?

So it may not tell us anything about how insiders feel about the current share price. … All up, insiders sold more shares in Wabtec than they bought, over the last year. … It is certainly not great to see that insiders have sold shares in the company

Simply Wall St -

Is Wabtec Corporation's (NYSE:WAB) ROE Of 10% Concerning?

Our data shows Wabtec has a return on equity of 10% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Does Wabtec Corporation's (NYSE:WAB) Earnings Growth Stack Up Against Industry Performance?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Did WAB's recent earnings growth beat the long-term trend and the industry. … WAB's trailing twelve-month earnings (from 31 December 2018) of US$294m has.

Simply Wall St -

Why Wabtec Corporation (NYSE:WAB) Is An Attractive Investment To Consider

Wabtec Corporation (NYSE:WAB) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

What Investors Should Know About Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) Financial Strength

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Westinghouse Air Brake Technologies Corporation (NYSE:WAB), with a market cap of US$7.2b, are often out of the spotlight. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … See our latest analysis for Westinghouse Air Brake Technologies

Simply Wall St -

Why Westinghouse Air Brake Technologies Corporation’s (NYSE:WAB) Use Of Investor Capital Doesn’t Look Great

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) CEO Salary Justified?

Raymond Betler became the CEO of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) in 2014. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Raymond Betler's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Why Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) High P/E Ratio Isn't Necessarily A Bad Thing

We'll look at Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) P/E ratio and reflect on what it tells us about the company's share price. … Westinghouse Air Brake Technologies has a P/E ratio of 21.28, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Be Worried About Insider Transactions At Westinghouse Air Brake Technologies Corporation (NYSE:WAB)?

So we'll take a look at whether insiders have been buying or selling shares in Westinghouse Air Brake Technologies Corporation (NYSE:WAB). … Westinghouse Air Brake Technologies Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of US$73.27.

Simply Wall St -

WAB Company Info

Description

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 services components for new and existing freight cars and locomotives; builds new switcher locomotives; rebuilds freight locomotives; supplies railway electronics, positive train control equipment, signal design, and engineering services; and provides related heat exchange and cooling systems. It serves publicly traded railroads; leasing companies; manufacturers of original equipment, including locomotives and freight cars; and utilities. The company’s Transit segment manufactures and services components for new and existing passenger transit vehicles, such as regional trains, high speed trains, subway cars, light-rail vehicles, and buses; builds new commuter locomotives; refurbishes subway cars; and provides heating, ventilation, and air conditioning equipment, as well as doors for buses and subways. It serves public transit authorities and municipalities, leasing companies, and manufacturers of subway cars and buses. The company’s products comprise positive train control equipment and electronically controlled pneumatic braking products; railway electronics; signal design and engineering services; freight car trucks and couplers; draft gears, couplers, and slack adjusters; air compressors and dryers; heat exchangers and cooling products; and track and switch products. Its products also include railway braking equipment and related components; friction products; and new commuter and switcher locomotives, and transit car and locomotive overhaul and refurbishment. In addition, the company’s products comprise doors for buses and subway cars; platform screen doors; pantographs; window assemblies; couplers; accessibility lifts and ramps for buses and subway cars; and traction motors. Wabtec Corporation was founded in 1869 and is headquartered in Wilmerding, Pennsylvania.

Details
Name: Wabtec Corporation
WAB
Exchange: NYSE
Founded: 1869
$12,428,676,846
162,466,364
Website: http://www.wabtec.com
Address: Wabtec Corporation
1001 Air Brake Avenue,
Wilmerding,
Pennsylvania, 15148,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WAB Common Stock New York Stock Exchange US USD 16. Jun 1995
DB WB2 Common Stock Deutsche Boerse AG DE EUR 16. Jun 1995
WBAG WAB Common Stock Wiener Boerse AG AT EUR 16. Jun 1995
BMV WAB * Common Stock Bolsa Mexicana de Valores MX MXN 16. Jun 1995
Number of employees
Current staff
Staff numbers
18,000
Wabtec employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 23:48
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.