WAB

Westinghouse Air Brake TechnologiesNYSE:WAB Stock Report

Market Cap

US$16.2b

7D

-4.0%

1Y

37.9%

Updated

22 Sep, 2021

Data

Company Financials +
WAB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

WAB Overview

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

Westinghouse Air Brake Technologies Competitors

Caterpillar

NYSE:CAT

US$103.9b

Honeywell International

NasdaqGS:HON

US$148.4b

Siemens

XTRA:SIE

€116.6b

General Electric

NYSE:GE

US$106.3b

Price History & Performance

Summary of all time highs, changes and price drops for Westinghouse Air Brake Technologies
Historical stock prices
Current Share PriceUS$85.78
52 Week HighUS$55.83
52 Week LowUS$91.12
Beta1.69
1 Month Change0.047%
3 Month Change5.72%
1 Year Change37.93%
3 Year Change-19.63%
5 Year Change9.59%
Change since IPO1,043.73%

Recent News & Updates

Sep 20
Is Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Potentially Undervalued?

Is Westinghouse Air Brake Technologies Corporation (NYSE:WAB) Potentially Undervalued?

Today we're going to take a look at the well-established Westinghouse Air Brake Technologies Corporation ( NYSE:WAB...

Aug 24
A Look At The Fair Value Of Westinghouse Air Brake Technologies Corporation (NYSE:WAB)

A Look At The Fair Value Of Westinghouse Air Brake Technologies Corporation (NYSE:WAB)

Does the August share price for Westinghouse Air Brake Technologies Corporation ( NYSE:WAB ) reflect what it's really...

Shareholder Returns

WABUS MachineryUS Market
7D-4.0%-3.3%-1.8%
1Y37.9%32.7%31.5%

Return vs Industry: WAB exceeded the US Machinery industry which returned 35.2% over the past year.

Return vs Market: WAB exceeded the US Market which returned 33% over the past year.

Price Volatility

Is WAB's price volatile compared to industry and market?
WAB volatility
WAB Beta1.69
Industry Beta1.25
Market Beta1

Stable Share Price: WAB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WAB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186927,000Rafael Santanahttps://www.wabteccorp.com

Westinghouse Air Brake Technologies 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.

Westinghouse Air Brake Technologies Fundamentals Summary

How do Westinghouse Air Brake Technologies's earnings and revenue compare to its market cap?
WAB fundamental statistics
Market CapUS$16.22b
Earnings (TTM)US$451.90m
Revenue (TTM)US$7.73b

35.9x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WAB income statement (TTM)
RevenueUS$7.73b
Cost of RevenueUS$5.50b
Gross ProfitUS$2.24b
ExpensesUS$1.78b
EarningsUS$451.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.39
Gross Margin28.92%
Net Profit Margin5.85%
Debt/Equity Ratio39.5%

How did WAB perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is Westinghouse Air Brake Technologies undervalued compared to its fair value and its price relative to the market?

12.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WAB ($85.78) is trading below our estimate of fair value ($97.54)

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 (35.9x) compared to the US Machinery industry average (28.6x).

PE vs Market: WAB is poor value based on its PE Ratio (35.9x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WAB's PEG Ratio to determine if it is good value.


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 (2.7x).


Future Growth

How is Westinghouse Air Brake Technologies forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if WAB's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if WAB's earnings are forecast to grow faster than the US market

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

Revenue vs Market: WAB's revenue (7.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: WAB's revenue (7.4% 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 (9.6%).


Past Performance

How has Westinghouse Air Brake Technologies performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAB has high quality earnings.

Growing Profit Margin: WAB's current net profit margins (5.8%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: WAB's earnings have grown by 7.9% per year over the past 5 years.

Accelerating Growth: WAB's earnings growth over the past year (6.6%) is below its 5-year average (7.9% per year).

Earnings vs Industry: WAB earnings growth over the past year (6.6%) underperformed the Machinery industry 22.1%.


Return on Equity

High ROE: WAB's Return on Equity (4.4%) is considered low.


Financial Health

How is Westinghouse Air Brake Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: WAB's short term assets ($3.8B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: WAB's short term assets ($3.8B) do not cover its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: WAB's debt to equity ratio (39.5%) is considered satisfactory.

Reducing Debt: WAB's debt to equity ratio has reduced from 43.2% to 39.5% over the past 5 years.

Debt Coverage: WAB's debt is well covered by operating cash flow (26.2%).

Interest Coverage: WAB's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

What is Westinghouse Air Brake Technologies's current dividend yield, its reliability and sustainability?

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WAB's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: WAB's dividend (0.56%) 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

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

2.5yrs

Average management tenure


CEO

Rafael Santana (49 yo)

2.17yrs

Tenure

US$11,044,418

Compensation

Mr. Rafael O. Santana is the President, Chief Executive Officer and Director of Westinghouse Air Brake Technologies Corporation since July 1, 2019. He is the President, Chief Executive Officer and Director...


CEO Compensation Analysis

Compensation vs Market: Rafael's total compensation ($USD11.04M) is about average for companies of similar size in the US market ($USD11.33M).

Compensation vs Earnings: Rafael's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WAB's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: WAB's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: WAB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Westinghouse Air Brake Technologies Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Westinghouse Air Brake Technologies Corporation
  • Ticker: WAB
  • Exchange: NYSE
  • Founded: 1869
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$16.215b
  • Shares outstanding: 189.03m
  • Website: https://www.wabteccorp.com

Number of Employees


Location

  • Westinghouse Air Brake Technologies Corporation
  • 30 Isabella Street
  • Pittsburgh
  • Pennsylvania
  • 15212
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:10
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.