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Westinghouse Air Brake Technologies

NYSE:WAB
Snowflake Description

Mediocre balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WAB
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, provides technology-based equipment, systems, and services for the freight rail and passenger transit vehicle industries worldwide. The last earnings update was 113 days ago. More info.


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  • Westinghouse Air Brake Technologies has significant price volatility in the past 3 months.
WAB Share Price and Events
7 Day Returns
1.6%
NYSE:WAB
4.3%
US Machinery
2.3%
US Market
1 Year Returns
-8.8%
NYSE:WAB
-7.2%
US Machinery
0.9%
US Market
WAB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Westinghouse Air Brake Technologies (WAB) 1.6% -1.4% -13.4% -8.8% 10.7% -4.6%
US Machinery 4.3% 4.2% 8.7% -7.2% 62.6% 27.6%
US Market 2.3% 4.2% 5.6% 0.9% 43.6% 40.9%
1 Year Return vs Industry and Market
  • WAB underperformed the Machinery industry which returned -7.2% over the past year.
  • WAB underperformed the Market in United States of America which returned 0.9% over the past year.
Price Volatility
WAB
Industry
5yr Volatility vs Market

WAB Value

 Is Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies.

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 13.7%
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 7.3%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.064 (1 + (1- 21%) (53.65%))
1.515
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.51
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.515 * 7.27%)
13.74%

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 Westinghouse Air Brake Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WAB DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 275.27 299.49 325.83 354.50 385.68
Source Analyst x3 Est @ 8.8% Est @ 8.8% Est @ 8.8% Est @ 8.8%
Present Value
Discounted (@ 13.74%)
242.02 231.50 221.43 211.81 202.60
Present value of next 5 years cash flows $1,109.35
NYSE:WAB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $385.68 × (1 + 2.73%) ÷ (13.74% – 2.73%)
$3,598.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,598.21 ÷ (1 + 13.74%)5
$1,890.14
NYSE:WAB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $1,109.35 + $1,890.14
$2,999.49
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,999.49 / 96.61
$31.05
NYSE:WAB Discount to Share Price
Calculation Result
Value per share (USD) From above. $31.05
Current discount Discount to share price of $74.57
= -1 x ($74.57 - $31.05) / $31.05
-140.2%

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

  • The current share price of Westinghouse Air Brake Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Westinghouse Air Brake Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Westinghouse Air Brake Technologies'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 (2018-09-30) in USD $3.22
NYSE:WAB Share Price ** NYSE (2019-02-19) in USD $74.57
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 19.67x
United States of America Market PE Ratio Median Figure of 3,044 Publicly-Listed Companies 17.23x

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

** Primary Listing of Westinghouse Air Brake Technologies.

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

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

= 74.57 ÷ 3.22

23.16x

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

  • Westinghouse Air Brake Technologies is overvalued based on earnings compared to the US Machinery industry average.
  • Westinghouse Air Brake Technologies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Westinghouse Air Brake Technologies'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 23.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
18%per year
United States of America Machinery Industry PEG Ratio Median Figure of 85 Publicly-Listed Machinery Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.41x

*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

= 23.16x ÷ 18%

1.29x

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

  • Westinghouse Air Brake Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Westinghouse Air Brake Technologies's assets?
Raw Data
NYSE:WAB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $29.97
NYSE:WAB Share Price * NYSE (2019-02-19) in USD $74.57
United States of America Machinery Industry PB Ratio Median Figure of 128 Publicly-Listed Machinery Companies 2.48x
United States of America Market PB Ratio Median Figure of 5,132 Publicly-Listed Companies 1.85x
NYSE:WAB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 74.57 ÷ 29.97

2.49x

* Primary Listing of Westinghouse Air Brake Technologies.

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

  • Westinghouse Air Brake Technologies is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Westinghouse Air Brake Technologies'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. Westinghouse Air Brake Technologies has a total score of 0/6, 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 Westinghouse Air Brake Technologies 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
18%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Westinghouse Air Brake Technologies expected to grow at an attractive rate?
  • Westinghouse Air Brake Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Westinghouse Air Brake Technologies's earnings growth is expected to exceed the United States of America market average.
  • Westinghouse Air Brake Technologies's revenue growth is positive but not above 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 18%
NYSE:WAB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 5%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.6%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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 (4 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
2020-12-31 4,821 494 5
2019-12-31 4,526 431 429 10
2018-12-31 4,350 316 359 11
NYSE:WAB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2015-12-31 3,308 451 397

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Westinghouse Air Brake Technologies's earnings are expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
  • Westinghouse Air Brake Technologies's revenue is expected to grow by 5% yearly, however this is not considered high growth (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 (4 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Westinghouse Air Brake Technologies Company Filings, last reported 4 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
2020-12-31 5.12 5.45 4.75 3.00
2019-12-31 4.46 4.65 4.30 7.00
2018-12-31 3.72 3.89 3.61 7.00
NYSE:WAB Past Financials Data
Date (Data in USD Millions) EPS *
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
2015-12-31 4.14

*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 Westinghouse Air Brake Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Westinghouse Air Brake Technologies'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.
Westinghouse Air Brake Technologies has a total score of 2/6, 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 Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies'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.
  • Westinghouse Air Brake Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Westinghouse Air Brake Technologies's 1-year earnings growth exceeds its 5-year average (23.8% vs -3%)
  • Westinghouse Air Brake Technologies's earnings growth has not exceeded the US Machinery industry average in the past year (23.8% vs 26.6%).
Earnings and Revenue History
Westinghouse Air Brake Technologies'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 Westinghouse Air Brake Technologies Company Filings, last reported 4 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
2018-09-30 4,321.21 309.18 603.30 85.22
2018-06-30 4,201.33 288.26 580.58 89.80
2018-03-31 4,021.90 275.91 534.21 93.75
2017-12-31 3,881.76 261.48 511.90 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 3,075.19 283.76 362.64 76.89
2016-12-31 2,931.19 303.97 327.51 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
2012-03-31 2,095.69 187.52 232.65 38.45

*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.
  • Westinghouse Air Brake Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Westinghouse Air Brake Technologies used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.
  • Westinghouse Air Brake Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Westinghouse Air Brake Technologies'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.
Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies'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 Westinghouse Air Brake Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Westinghouse Air Brake Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Westinghouse Air Brake Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Westinghouse Air Brake Technologies'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 1.1x 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 Westinghouse Air Brake Technologies Company Filings, last reported 4 months ago.

NYSE:WAB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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
2012-03-31 1,123.88 387.10 269.30
  • Westinghouse Air Brake Technologies's level of debt (132.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (35.7% vs 132.8% today).
  • Debt is not well covered by operating cash flow (5.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).
X
Financial health checks
We assess Westinghouse Air Brake Technologies'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. Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies'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
0.64%
Current annual income from Westinghouse Air Brake Technologies dividends. Estimated to be 0.62% next year.
If you bought $2,000 of Westinghouse Air Brake Technologies 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?
  • Westinghouse Air Brake Technologies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Westinghouse Air Brake Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.56%).
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 78 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
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
2020-12-31
2019-12-31 0.47 1.00
2018-12-31 0.42 1.00
NYSE:WAB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-11 0.480 0.669
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
2015-05-18 0.320 0.373
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
2009-02-23 0.020 0.127

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

  • Westinghouse Air Brake Technologies is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Westinghouse Air Brake Technologies'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 Westinghouse Air Brake Technologies'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 Westinghouse Air Brake Technologies'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 Westinghouse Air Brake Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Westinghouse Air Brake Technologies 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 Westinghouse Air Brake Technologies'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
Raymond Betler
COMPENSATION $3,459,532
AGE 62
TENURE AS CEO 4.8 years
CEO Bio

Mr. Raymond T. Betler, also known as Ray, has been the President of Westinghouse Air Brake Technologies Corporation and 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 and Westinghouse Air Brake Technologies 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 and Westinghouse Air Brake Technologies Corporation since May 14, 2014. He has been Director of CNX Midstream GP LLC since October 18, 2017. He serves as a Lead 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
  • Raymond's compensation has been consistent with company performance over the past year.
  • Raymond'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 Westinghouse Air Brake Technologies management team in years:

4.8
Average Tenure
55
Average Age
  • The tenure for the Westinghouse Air Brake Technologies management team is about average.
Management Team

Al Neupaver

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
67

Raymond Betler

TITLE
President
COMPENSATION
$3M
AGE
62
TENURE
4.8 yrs

Pat Dugan

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

Dave DeNinno

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

Scott Wahlstrom

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

John Mastalerz

TITLE
Senior VP of Finance
AGE
51
TENURE
3.1 yrs

Tim Wesley

TITLE
Vice President of Investor Relations & Corporate Communications
AGE
56
TENURE
19.3 yrs

R. Cox

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

Rajendra Jadhav

TITLE
President of Electronics Group
Board of Directors Tenure

Average tenure and age of the Westinghouse Air Brake Technologies board of directors in years:

8.7
Average Tenure
69
Average Age
  • The tenure for the Westinghouse Air Brake Technologies board of directors is about average.
Board of Directors

Raymond Betler

TITLE
President
COMPENSATION
$3M
AGE
62
TENURE
4.8 yrs

Emilio Fernandez

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

Al Neupaver

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

Lee Foster

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

Lindy Harty

TITLE
Director
COMPENSATION
$250K
AGE
57
TENURE
2.6 yrs

Bill Kassling

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

Robert Brooks

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

Michael W. Howell

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

Brian Hehir

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

Erwan Faiveley

TITLE
Independent Director
COMPENSATION
$235K
AGE
39
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
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 Westinghouse Air Brake Technologies'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. Westinghouse Air Brake Technologies 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

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 -

Does Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) Recent Track Record Look Strong?

When Westinghouse Air Brake Technologies Corporation (NYSE:WAB) announced its most recent earnings (30 September 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Understanding how Westinghouse Air Brake Technologies performed requires a benchmark rather than trying to assess a standalone number at one point in time. … WAB's trailing twelve-month earnings (from 30 September 2018) of US$309m has.

Simply Wall St -

How Financially Strong Is Westinghouse Air Brake Technologies Corporation (NYSE:WAB)?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Westinghouse Air Brake Technologies Corporation (NYSE:WAB), with a market cap of US$8.0b, often get neglected by retail investors. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself. … View our latest analysis for Westinghouse Air Brake Technologies

Simply Wall St -

Westinghouse Air Brake Technologies Corporation (NYSE:WAB): The Return Story

and looking to gauge the potential return on investment in Westinghouse Air Brake Technologies Corporation (NYSE:WAB). … Thus, to understand how your money can grow by investing in Westinghouse Air Brake Technologies, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Westinghouse Air Brake Technologies's Return On Capital Employed

Simply Wall St -

Should You Worry About Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) CEO Pay Check?

Raymond Betler has been the CEO of Westinghouse Air Brake Technologies Corporation (NYSE:WAB) since 2014. … First, this article will compare CEO compensation with compensation at other large companies. … Our data indicates that Westinghouse Air Brake Technologies Corporation is worth US$9.7b, and total annual CEO compensation is US$3m.

Simply Wall St -

Does Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) Recent Track Record Look Strong?

Measuring Westinghouse Air Brake Technologies Corporation's (NYSE:WAB) track record of past performance is an insightful exercise for investors. … Below, I will assess WAB's recent performance announced on 30 June 2018 and compare these figures to its historical trend and industry movements. … How Did WAB's Recent Performance Stack Up Against Its Past.

Simply Wall St -

WAB Company Info

Map
Description

Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, provides technology-based equipment, systems, and services for the freight rail and passenger transit vehicle industries worldwide. It operates in two segments, Freight and Transit. The Freight segment manufactures and services components for new and existing locomotive and freight cars; supplies railway electronics and positive train control equipment; offers signal design and engineering services; builds switcher locomotives; rebuilds freight locomotives; and provides heat exchangers and cooling systems for rail and other industrial markets. This segment serves publicly traded railroads; leasing companies; manufacturers of original equipment, such as locomotives and freight cars; and utilities. The Transit segment manufactures and services components for new and existing passenger transit vehicles, including regional trains, high speed trains, subway cars, light-rail vehicles, and buses; builds commuter locomotives; and refurbishes passenger transit vehicles. This segment 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, including event recorders, monitoring equipment, and end of train devices; freight car trucks and couplers; draft gears, couplers, and slack adjusters; and air compressors and dryers. Its products also include track and switch products; railway braking equipment and related components; friction products consisting of brake shoes and pads; window assemblies, and accessibility lifts and ramps for buses and subway cars; and traction motors, as well as builds, remanufactures, and overhauls commuter and switcher locomotives, and transit cars. Westinghouse Air Brake Technologies Corporation was founded in 1869 and is headquartered in Wilmerding, Pennsylvania.

Details
Name: Westinghouse Air Brake Technologies Corporation
WAB
Exchange: NYSE
Founded: 1869
$7,204,576,523
96,614,946
Website: http://www.wabtec.com
Address: Westinghouse Air Brake Technologies 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
Number of employees
Current staff
Staff numbers
18,000
Westinghouse Air Brake Technologies employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/20 05:07
End of day share price update: 2019/02/19 00:00
Last estimates confirmation: 2019/02/19
Last earnings filing: 2018/10/30
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


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.