Westinghouse Air Brake Technologies Corporation
Westinghouse Air Brake Technologies Corporation Fundamental Analysis
Westinghouse Air Brake Technologies Corporation (WAB) shows moderate financial fundamentals with a PE ratio of 38.45, profit margin of 10.48%, and ROE of 10.77%. The company generates $11.2B in annual revenue with moderate year-over-year growth of 7.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WAB's fundamental strength across five key dimensions:
Efficiency Score
WeakWAB struggles to generate sufficient returns from assets.
Valuation Score
ModerateWAB shows balanced valuation metrics.
Growth Score
ExcellentWAB delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWAB maintains a strong and stable balance sheet.
Profitability Score
WeakWAB struggles to sustain strong margins.
Key Financial Metrics
Is WAB Expensive or Cheap?
P/E Ratio
WAB trades at 38.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WAB's PEG of -52.98 indicates potential undervaluation.
Price to Book
The market values Westinghouse Air Brake Technologies Corporation at 4.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.02 times EBITDA. This signals the market has high growth expectations.
How Well Does WAB Make Money?
Net Profit Margin
For every $100 in sales, Westinghouse Air Brake Technologies Corporation keeps $10.48 as profit after all expenses.
Operating Margin
Core operations generate 16.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.77 in profit for every $100 of shareholder equity.
ROA
Westinghouse Air Brake Technologies Corporation generates $5.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Westinghouse Air Brake Technologies Corporation produces operating cash flow of $1.77B, showing steady but balanced cash generation.
Free Cash Flow
Westinghouse Air Brake Technologies Corporation produces free cash flow of $769.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.50 in free cash annually.
FCF Yield
WAB converts 1.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-52.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How WAB Stacks Against Its Sector Peers
| Metric | WAB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.45 | 26.76 | Worse (Expensive) |
| ROE | 10.77% | 1300.00% | Weak |
| Net Margin | 10.48% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.11 | 10.68 | Neutral |
| ROA | 5.30% | -1545134.00% (disorted) | Weak |
WAB outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Westinghouse Air Brake Technologies Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.05%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
216.26%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
76.87%
Industry Style: Cyclical, Value, Infrastructure
High Growth