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 Analysis

Good 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

-9.9%

WAB

-6.8%

US Machinery

-7.6%

US Market


1 Year Return

-5.9%

WAB

2.5%

US Machinery

10.2%

US Market

Return vs Industry: WAB underperformed the US Machinery industry which returned 2.5% over the past year.

Return vs Market: WAB underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

WABIndustryMarket
7 Day-9.9%-6.8%-7.6%
30 Day-6.9%-4.8%-4.5%
90 Day-10.4%-5.7%-0.6%
1 Year-5.3%-5.9%4.4%2.5%12.5%10.2%
3 Year-11.3%-12.9%27.7%19.6%37.1%28.3%
5 Year-22.5%-24.5%54.4%36.2%60.8%43.2%

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?

25.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAB ($70.88) is trading below our estimate of fair value ($94.84)

Significantly Below Fair Value: WAB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WAB is poor value based on its PE Ratio (37.2x) compared to the Machinery industry average (20.4x).

PE vs Market: WAB is poor value based on its PE Ratio (37.2x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: WAB is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: WAB is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (2.1x).


Next Steps

Future Growth

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

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAB's forecast earnings growth (46.9% per year) is above the savings rate (1.7%).

Earnings vs Market: WAB's earnings (46.9% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: WAB's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WAB's revenue (4.2% 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 (9.4%).


Next Steps

Past Performance

How has Wabtec performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAB has a large one-off loss of $286.0M impacting its December 31 2019 financial results.

Growing Profit Margin: WAB's current net profit margins (4%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: WAB's earnings have declined by -9.9% per year over the past 5 years.

Accelerating Growth: WAB's earnings growth over the past year (10.6%) exceeds its 5-year average (-9.9% per year).

Earnings vs Industry: WAB earnings growth over the past year (10.6%) exceeded the Machinery industry 2.1%.


Return on Equity

High ROE: WAB's Return on Equity (3.3%) is considered low.


Next Steps

Financial Health

How is Wabtec's financial position?


Financial Position Analysis

Short Term Liabilities: WAB's short term assets ($4.2B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: WAB's short term assets ($4.2B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: WAB's debt to equity ratio (44.3%) is considered high.

Reducing Debt: WAB's debt to equity ratio has increased from 28.8% to 44.3% over the past 5 years.

Debt Coverage: WAB's debt is well covered by operating cash flow (22.9%).

Interest Coverage: WAB's interest payments on its debt are well covered by EBIT (4.4x 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?

0.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WAB's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: WAB's dividend (0.68%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Rafael Santana (47yo)

0.6yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Albert Neupaver
Executive Chairman6.8yrsUS$4.45m0.35% $48.2m
Patrick Dugan
Executive VP & CFO6.1yrsUS$2.86m0.057% $7.7m
David DeNinno
Executive VP8yrsUS$2.40m0.047% $6.4m
Rafael Santana
CEO, President & Director0.6yrsno data0.044% $6.0m
John Mastalerz
Senior VP of Finance & Chief Accounting Officer4.1yrsno data0.011% $1.5m
Dominique Malenfant
Senior VP & Global Technology Officer1yrsno data0.0034% $462.0k
Kristine Kubacki
Vice President of Investor Relations0.8yrsno data0.00064% $87.0k
R. Cox
Executive Vice President of Corporate Development3.2yrsno datano data
Scott Wahlstrom
Executive VP & Chief Human Resources3.2yrsUS$756.05k0.071% $9.6m
Michael Fetsko
President of Freight & Industrial Components3.1yrsno data0.020% $2.7m

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: WAB's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Neupaver
Executive Chairman6.8yrsUS$4.45m0.35% $48.2m
Rafael Santana
CEO, President & Director0.6yrsno data0.044% $6.0m
William Kassling
Lead Director6.8yrsUS$259.98k0.038% $5.2m
Lee Foster
Independent Director21.1yrsUS$249.98k0.036% $4.9m
Emilio Fernandez
Independent Vice Chairman21.9yrsUS$244.98k0.64% $87.4m
Linda Harty
Independent Director3.6yrsUS$249.98k0.0029% $390.0k
Michael Howell
Independent Director17.1yrsUS$234.98k0.0037% $509.6k
Philippe Alfroid
Independent Director3.3yrsUS$234.98k0.0029% $399.5k
Erwan Faiveley
Independent Director3.3yrsUS$234.98k0.0032% $436.2k
Brian Hehir
Independent Director12.6yrsUS$234.98k0.015% $2.0m

6.8yrs

Average Tenure

70yo

Average Age

Experienced Board: WAB's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 77.6%.


Top Shareholders

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$13.588b
  • Shares outstanding: 191.71m
  • 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
W1AB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Wabtec Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit vehicle industries worldwide. It operates through two segments, Freight and Transit. The Freight segment manufactures and services components for new and existing freight cars and locomotives; builds new commuter 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 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; 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 also provides electronically controlled pneumatic braking products; railway electronics; 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. In addition, it offers railway braking equipment and related components; friction products; and new commuter and switcher locomotives, and transit car and locomotive overhaul and refurbishment. Further, the company provides 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 Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:48
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.