NYSE:WBC

Stock Analysis Report

Executive Summary

WABCO Holdings Inc., together with its subsidiaries, supplies electronic, mechanical, electro-mechanical, and aerodynamic products worldwide.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has WABCO Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

WBC

2.5%

US Machinery

0.4%

US Market


1 Year Return

27.5%

WBC

8.5%

US Machinery

6.9%

US Market

Return vs Industry: WBC exceeded the US Machinery industry which returned 8.5% over the past year.

Return vs Market: WBC exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

WBCIndustryMarket
7 Day0.4%2.5%0.4%
30 Day0.5%0.9%-1.1%
90 Day1.9%-0.4%-0.5%
1 Year27.5%27.5%10.8%8.5%9.3%6.9%
3 Year36.2%36.2%49.9%40.2%45.8%36.4%
5 Year37.9%37.9%57.6%38.3%62.9%45.1%

Price Volatility Vs. Market

How volatile is WABCO Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WABCO Holdings undervalued compared to its fair value and its price relative to the market?

20.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: WBC ($135.04) is trading above our estimate of fair value ($64.7)

Significantly Undervalued: WBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WBC is poor value based on its PE Ratio (20.3x) compared to the Machinery industry average (20.1x).

PE vs Market: WBC is poor value based on its PE Ratio (20.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: WBC is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: WBC is overvalued based on its PB Ratio (5.2x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is WABCO Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBC's forecast earnings growth (8.7% per year) is above the savings rate (2.7%).

Earnings vs Market: WBC's earnings (8.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: WBC's revenue (3.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WBC's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WBC's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has WABCO Holdings performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WBC's earnings have declined by -0.6% per year over the past 5 years.

Accelerating Growth: WBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WBC had negative earnings growth (-22.5%) over the past year, making it difficult to compare to the Machinery industry average (17.5%).


Return on Equity

High ROE: WBC's Return on Equity (25.4%) is considered high.


Return on Assets

ROA vs Industry: WBC has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: WBC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is WABCO Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WBC's short term assets ($1.9B) exceeds its short term liabilities ($652.8M)

Long Term Liabilities: WBC's short term assets (1.9B) exceeds its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: WBC's debt to equity ratio (60.5%) is considered high

Reducing Debt: WBC's debt to equity ratio has increased from 19.6% to 60.5% over the past 5 years.

Debt Coverage: WBC's debt is well covered by operating cash flow (51.7%).

Interest Coverage: WBC's interest payments on its debt are well covered by EBIT (400.3x coverage).


Balance Sheet

Inventory Level: WBC has a high level of physical assets or inventory.

Debt Coverage by Assets: WBC's debt is covered by short term assets (assets are 2.264390x debt).


Next Steps

Dividend

What is WABCO Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate WBC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WBC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if WBC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WBC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WBC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WBC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of WABCO Holdings's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Jacques H. Esculier (60yo)

12.3yrs

Tenure

US$8,080,720

Compensation

Mr. Jacques H. G. Esculier has been the Chief Executive Officer and Director of WABCO Holdings Inc. since July 2007 and has been its Chairman since May 2009. He joined WABCO Holdings Inc. in July 2007. Pri ...


CEO Compensation Analysis

Compensation vs. Market: Jacques H.'s total compensation ($USD8.08M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Jacques H.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: WBC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

70yo

Average Age

Experienced Board: WBC's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$99,00007 Aug 19
Nicolas Bardot
EntityIndividual
Shares750
Max PriceUS$132.00
SellUS$121,40028 Feb 19
Nick Rens
EntityIndividual
Role
Senior Key Executive
President of Europe
Shares1,000
Max PriceUS$121.40
SellUS$138,46527 Feb 19
Nicolas Bardot
EntityIndividual
Shares1,145
Max PriceUS$120.93

Ownership Breakdown


Management Team

  • Tom Gross (64yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$229.53k
  • Jacques H. Esculier (60yo)

    Chairman of the Board & CEO

    • Tenure: 12.3yrs
    • Compensation: US$8.08m
  • Nick Rens (54yo)

    President of Europe

    • Tenure: 1yrs
    • Compensation: US$1.55m
  • Sean Deason (47yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Lisa Brown (40yo)

    Chief Legal Officer & Company Secretary

    • Tenure: 3.5yrs
    • Compensation: US$1.40m
  • Mazen Mazraani (50yo)

    Chief Human Resources Officer

    • Tenure: 3.1yrs
  • Alexander De Bock (42yo)

    Vice President of Financial Planning & Analysis

    • Tenure: 0yrs
    • Compensation: US$571.70k
  • Christian Brenneke (45yo)

    Chief Technology Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.34m
  • Gautham Appaya

    Vice President of Communications

    • Tenure: 0yrs
  • Milan Kumar

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • G. D’Aloia (74yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$216.41k
  • Tom Gross (64yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$229.53k
  • Michael Smith (76yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$219.82k
  • Jean-Paul Montupet (71yo)

    Lead Director

    • Tenure: 2.6yrs
    • Compensation: US$240.83k
  • Juergen Gromer (74yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$237.31k
  • Jacques H. Esculier (60yo)

    Chairman of the Board & CEO

    • Tenure: 12.3yrs
    • Compensation: US$8.08m
  • Nick Reilly (69yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$231.72k
  • Henry Keizer (62yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$230.25k

Company Information

WABCO Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WABCO Holdings Inc.
  • Ticker: WBC
  • Exchange: NYSE
  • Founded: 1869
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$6.920b
  • Shares outstanding: 51.24m
  • Website: https://www.wabco-auto.com

Number of Employees


Location

  • WABCO Holdings Inc.
  • Giacomettistrasse 1
  • Bern
  • 3000-31
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBCNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2007
WB0DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2007

Biography

WABCO Holdings Inc., together with its subsidiaries, supplies electronic, mechanical, electro-mechanical, and aerodynamic products worldwide. The company engineers, develops, manufactures, and sells brakin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:05
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.