Westinghouse Air Brake Technologies (NYSE:WAB) - Share price, News & Analysis

WAB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
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.

Rewards

Trading at 16.6% below our estimate of its fair value

Earnings are forecast to grow 14.13% per year

Earnings grew by 43.4% over the past year

Risk Analysis

No risks detected for WAB from our risk checks.

Westinghouse Air Brake Technologies Competitors

Caterpillar

NYSE:CAT

US$109.7b

Greenbrier Companies

NYSE:GBX

US$1.3b

Honeywell International

NasdaqGS:HON

US$129.3b

Siemens

XTRA:SIE

€91.2b

Price History & Performance

Summary of all time highs, changes and price drops for Westinghouse Air Brake Technologies
Historical stock prices
Current Share Price	US$86.36
52 Week High	US$100.05
52 Week Low	US$76.30
Beta	1.51
1 Month Change	-3.11%
3 Month Change	-5.55%
1 Year Change	6.46%
3 Year Change	30.89%
5 Year Change	4.82%
Change since IPO	1,051.47%

Recent News & Updates

May 17

Should You Be Adding Westinghouse Air Brake Technologies (NYSE:WAB) To Your Watchlist Today?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

May 15

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.

May 04

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...

Apr 29

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%	-4.9%	-4.0%
1Y	6.5%	-17.6%	-13.2%

Return vs Industry: WAB exceeded the US Machinery industry which returned -17.8% over the past year.

Return vs Market: WAB exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is WAB's price volatile compared to industry and market?
WAB volatility
WAB Average Weekly Movement	5.1%
Machinery Industry Average Movement	5.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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

How do Westinghouse Air Brake Technologies's earnings and revenue compare to its market cap?
WAB fundamental statistics
Market Cap	US$15.77b
Earnings (TTM)	US$593.00m
Revenue (TTM)	US$7.92b

26.6x

P/E Ratio

2.0x

P/S Ratio

Is WAB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
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 comparison

Dividends

0.7%

Current Dividend Yield

16%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

16.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WAB ($86.36) 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 Price-To-Earnings Ratio (26.6x) compared to the US Machinery industry average (20.7x).

PE vs Market: WAB is poor value based on its Price-To-Earnings Ratio (26.6x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: WAB is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: WAB is good value based on its Price-To-Book 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 12 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAB's forecast earnings growth (14.1% per year) is above the savings rate (1.9%).

Earnings vs Market: WAB's earnings (14.1% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: WAB's earnings are forecast to grow, but not significantly.

Revenue vs Market: WAB's revenue (5.8% per year) is forecast to grow slower than the US market (7.8% 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

5/6

Past 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 24%.

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

5/6

Financial 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

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.69%

Current Dividend Yield

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 (1.57%).

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.

Discover strong dividend paying companies

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: 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31