| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
WAB Stock Overview
Westinghouse Air Brake Technologies Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit industries worldwide.
Westinghouse Air Brake Technologies Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$86.79 |
| 52 Week High | US$100.05 |
| 52 Week Low | US$76.30 |
| Beta | 1.51 |
| 1 Month Change | -2.67% |
| 3 Month Change | -0.79% |
| 1 Year Change | 7.77% |
| 3 Year Change | 31.70% |
| 5 Year Change | 6.02% |
| Change since IPO | 1,057.20% |
Recent News & Updates
Avoiding Wabtec After Great Results
Wabtec is off to a great start to the year in my view. Revenue, net income are up massively, the capital structure has improved dramatically. The problem is the alternatives available to investors at the moment. When the 10-year treasury is yielding just shy of 3%, why buy a stock yielding .7%. That said, there's value here, so I'm comfortable holding the puts I wrote a couple of months ago.
Is Westinghouse Air Brake Technologies (NYSE:WAB) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Wabtec's Strong Turnaround Accelerates
First-quarter EPS was up 36% to 80 cents driven by sales up 5.3% to $1.93 Billion in this slow quarter. Stronger quarters with higher overhead absorption. Wabtec's earnings per share increased 36% in 2021 and 2022 EPS guidance is an increase of 47 to 60 percent. High market share gives Wabtec strong pricing power. Higher fuel and labor costs will make railroads more competitive with trucks. Achieving this competitive advantage will require railroads to make investments in digital systems and equipment which Wabtec has developed. Wabtec is developing greener environmentally friendly products that will be in demand independent of swings in freight volume.
Shareholder Returns
| WAB | US Machinery | US Market | |
|---|---|---|---|
| 7D | -3.4% | -2.4% | -2.5% |
| 1Y | 7.8% | -18.2% | -10.4% |
Return vs Industry: WAB exceeded the US Machinery industry which returned -18.2% over the past year.
Return vs Market: WAB exceeded the US Market which returned -10.4% over the past year.
Price Volatility
| WAB volatility | |
|---|---|
| WAB Average Weekly Movement | 5.1% |
| Machinery Industry Average Movement | 5.6% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: WAB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: WAB's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1869 | 25,000 | Rafael Santana | https://www.wabteccorp.com |
Westinghouse Air Brake Technologies Corporation provides technology-based equipment, systems, and services for the freight rail and passenger transit 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
| WAB fundamental statistics | |
|---|---|
| Market Cap | US$15.85b |
| Earnings (TTM) | US$593.00m |
| Revenue (TTM) | US$7.92b |
26.7x
P/E Ratio2.0x
P/S RatioIs WAB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WAB income statement (TTM) | |
|---|---|
| Revenue | US$7.92b |
| Cost of Revenue | US$5.43b |
| Gross Profit | US$2.49b |
| Other Expenses | US$1.90b |
| Earnings | US$593.00m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.25 |
| Gross Margin | 31.47% |
| Net Profit Margin | 7.49% |
| Debt/Equity Ratio | 42.0% |
How did WAB perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield16%
Payout RatioDoes WAB pay a reliable dividends?
See WAB dividend history and benchmarks| Westinghouse Air Brake Technologies dividend dates | |
|---|---|
| Ex Dividend Date | May 19 2022 |
| Dividend Pay Date | May 27 2022 |
| Days until Ex dividend | 3 days |
| Days until Dividend pay date | 11 days |
Does WAB pay a reliable dividends?
See WAB dividend history and benchmarksValuation
Is Westinghouse Air Brake Technologies undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
16.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WAB ($86.79) is trading below our estimate of fair value ($103.52)
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 (26.7x) compared to the US Machinery industry average (21.5x).
PE vs Market: WAB is poor value based on its PE Ratio (26.7x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: WAB is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: WAB is good value based on its PB Ratio (1.6x) compared to the US Machinery industry average (2.2x).
Future Growth
How is Westinghouse Air Brake Technologies forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
30.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WAB's forecast earnings growth (30.3% per year) is above the savings rate (1.9%).
Earnings vs Market: WAB's earnings (30.3% per year) are forecast to grow faster than the US market (12.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WAB's revenue (5.8% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: WAB's revenue (5.8% 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 (9.7%).
Past Performance
How has Westinghouse Air Brake Technologies performed over the past 5 years?
Past Performance Score
5/6Past Performance Score 5/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
17.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WAB has high quality earnings.
Growing Profit Margin: WAB's current net profit margins (7.5%) are higher than last year (5.5%).
Past Earnings Growth Analysis
Earnings Trend: WAB's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: WAB's earnings growth over the past year (43.4%) exceeds its 5-year average (17.2% per year).
Earnings vs Industry: WAB earnings growth over the past year (43.4%) exceeded the Machinery industry 29.3%.
Return on Equity
High ROE: WAB's Return on Equity (5.9%) is considered low.
Financial Health
How is Westinghouse Air Brake Technologies's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: WAB's short term assets ($3.9B) exceed its short term liabilities ($2.9B).
Long Term Liabilities: WAB's short term assets ($3.9B) do not cover its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: WAB's net debt to equity ratio (37.2%) is considered satisfactory.
Reducing Debt: WAB's debt to equity ratio has reduced from 79% to 42% over the past 5 years.
Debt Coverage: WAB's debt is well covered by operating cash flow (22.2%).
Interest Coverage: WAB's interest payments on its debt are well covered by EBIT (5.9x coverage).
Balance Sheet
Dividend
What is Westinghouse Air Brake Technologies's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.69%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: WAB's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: WAB's dividend (0.69%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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.
Earnings Payout to Shareholders
Earnings Coverage: WAB is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: WAB is not paying a notable dividend 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 (49 yo)
2.83yrs
Tenure
US$11,027,238
Compensation
Mr. Rafael O. Santana serves as Independent Director at The Travelers Companies, Inc. since January 1, 2022. He is the President, Chief Executive Officer and Director of Westinghouse Air Brake Technologies...
CEO Compensation Analysis
Compensation vs Market: Rafael's total compensation ($USD11.03M) is about average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: Rafael's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WAB's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: WAB's board of directors are seasoned and experienced ( 10.3 years average tenure).
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
- Implied Market Cap: US$15.852b
- Shares outstanding: 182.65m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.