(WAB) Westinghouse Air Brake - NYSE
Sector: Industrials | Industry: Railroads | Exchange: NYSE (USA) | Market Cap: 44.998m USD | Total Return: 37% in 12m
Avg Turnover: 209M
EPS Trend: 97.3%
Qual. Beats: 1
Rev. Trend: 97.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Westinghouse Air Brake Technologies Corp (WAB), known as Wabtec, is a global provider of technology-based equipment, systems, and services for the freight rail and passenger transit sectors. The company operates through two primary segments: Freight and Transit. Its portfolio includes the manufacturing of diesel-electric and liquid natural gas locomotives, advanced electronic braking systems, and positive train control (PTC) technology. Beyond rolling stock, the company provides digital solutions such as Internet of Things (IoT) hardware, edge-to-cloud analytics, and network optimization software to improve operational efficiency for shippers and ports.
The business model relies heavily on a high-margin aftermarket services and components segment, which accounts for a significant portion of recurring revenue through long-term maintenance agreements and locomotive modernizations. As the rail industry faces increasing pressure to decarbonize, Wabtec’s development of alternative fuel engines and battery-electric propulsion systems positions it within a critical infrastructure niche. Investors may find it beneficial to examine the companys historical valuation trends on ValueRay. Founded in 1869 and headquartered in Pittsburgh, Pennsylvania, the company maintains a dominant position in the heavy transportation equipment sector due to its extensive patent portfolio and global service network.
- Locomotive modernization demand fuels long-term high-margin freight segment revenue growth
- Global transit infrastructure spending drives multi-year backlog expansion in international markets
- Digital electronics and automated signaling adoption improves recurring software service margins
- Rising North American rail traffic volumes stimulate replacement part and maintenance demand
- Fluctuating raw material costs and global supply chain constraints impact manufacturing margins
| Net Income: 1.21b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -0.62 > 1.0 |
| NWC/Revenue: 1.20% < 20% (prev 12.65%; Δ -11.45% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.77b > Net Income 1.21b |
| Net Debt (6.39b) to EBITDA (2.32b): 2.76 < 3 |
| Current Ratio: 1.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (170.7m) vs 12m ago -0.35% < -2% |
| Gross Margin: 33.81% > 18% (prev 32.87%; Δ 0.94% > 0.5%) |
| Asset Turnover: 54.42% > 50% (prev 54.99%; Δ -0.57% > 0%) |
| Interest Coverage Ratio: 7.36 > 6 (EBIT TTM 1.84b / Interest Expense TTM 250.0m) |
| A: 0.01 (Total Current Assets 5.97b - Total Current Liabilities 5.83b) / Total Assets 23.2b |
| B: 0.18 (Retained Earnings 4.19b / Total Assets 23.2b) |
| C: 0.09 (EBIT TTM 1.84b / Avg Total Assets 21.1b) |
| D: 0.93 (Book Value of Equity 11.2b / Total Liabilities 12.0b) |
| Altman-Z'' = 2.18 = BBB |
| DSRI: 1.06 (Receivables 2.25b/1.93b, Revenue 11.5b/10.5b) |
| GMI: 0.97 (GM 32.87% / 33.81%) |
| AQI: 1.04 (AQ_t 0.67 / AQ_t-1 0.65) |
| SGI: 1.10 (Revenue 11.5b / 10.5b) |
| TATA: -0.02 (NI 1.21b - CFO 1.77b) / TA 23.2b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of June 20, 2026, the stock is trading at USD 273.83 with a total of 628,969 shares traded.
Over the past week, the price has changed by +4.48%,
over one month by +5.38%,
over three months by +15.30% and
over the past year by +37.03%.
Westinghouse Air Brake has received a consensus analysts rating of 4.08. Therefore, it is recommended to buy WAB.
- StrongBuy: 6
- Buy: 1
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 300 | 9.6% |
P/E Trailing = 37.4576
P/E Forward = 23.753
P/S = 3.9105
P/B = 4.0528
P/EG = 1.368
Revenue TTM = 11.5b USD
EBIT TTM = 1.84b USD
EBITDA TTM = 2.32b USD
Long Term Debt = 4.71b USD (from longTermDebt, last quarter)
Short Term Debt = 1.89b USD (from shortTermDebt, last quarter)
Debt = 6.92b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.39b USD (calculated: Debt 6.92b - CCE 531.0m)
Enterprise Value = 51.4b USD (45.0b + Debt 6.92b - CCE 531.0m)
Interest Coverage Ratio = 7.36 (Ebit TTM 1.84b / Interest Expense TTM 250.0m)
EV/FCF = 31.27x (Enterprise Value 51.4b / FCF TTM 1.64b)
FCF Yield = 3.20% (FCF TTM 1.64b / Enterprise Value 51.4b)
FCF Margin = 14.28% (FCF TTM 1.64b / Revenue TTM 11.5b)
Net Margin = 10.52% (Net Income TTM 1.21b / Revenue TTM 11.5b)
Gross Margin = 33.81% ((Revenue TTM 11.5b - Cost of Revenue TTM 7.62b) / Revenue TTM)
Gross Margin QoQ = 35.97% (prev 29.98%)
Tobins Q-Ratio = 2.22 (Enterprise Value 51.4b / Total Assets 23.2b)
Interest Expense / Debt = 3.61% (Interest Expense 250.0m / Debt 6.92b)
Taxrate = 25.44% (416.0m / 1.64b)
NOPAT = 1.37b (EBIT 1.84b * (1 - 25.44%))
Current Ratio = 1.02 (Total Current Assets 5.97b / Total Current Liabilities 5.83b)
Debt / Equity = 0.62 (Debt 6.92b / totalStockholderEquity, last quarter 11.2b)
Debt / EBITDA = 2.76 (Net Debt 6.39b / EBITDA 2.32b)
Debt / FCF = 3.89 (Net Debt 6.39b / FCF TTM 1.64b)
Total Stockholder Equity = 11.1b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.72% (Net Income 1.21b / Total Assets 23.2b)
RoE = 10.94% (Net Income TTM 1.21b / Total Stockholder Equity 11.1b)
RoCE = 11.66% (EBIT 1.84b / Capital Employed (Equity 11.1b + L.T.Debt 4.71b))
RoIC = 7.32% (NOPAT 1.37b / Invested Capital 18.7b)
WACC = 8.82% (E(45.0b)/V(51.9b) * Re(9.76%) + D(6.92b)/V(51.9b) * Rd(3.61%) * (1-Tc(0.25)))
Discount Rate = 9.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -2.04%
[DCF] Terminal Value 75.29% ; FCFF base≈1.57b ; Y1≈1.73b ; Y5≈2.21b
[DCF] Fair Price = 146.1 (EV 31.2b - Net Debt 6.39b = Equity 24.8b / Shares 169.7m; r=8.82% [WACC]; 5y FCF grow 11.69% → 2.50% )
EPS Correlation: 97.28 | EPS CAGR: 18.09% | SUE: 1.07 | # QB: 1
Revenue Correlation: 97.28 | Revenue CAGR: 7.76% | SUE: -0.25 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.60 | Chg30d=-0.15% | Revisions=-20% | Analysts=10
EPS next Quarter (2026-09-30): EPS=2.75 | Chg30d=+0.40% | Revisions=+33% | Analysts=10
EPS current Year (2026-12-31): EPS=10.62 | Chg30d=+0.19% | Revisions=+57% | GrowthEPS=+18.4% | GrowthRev=+10.9%
EPS next Year (2027-12-31): EPS=12.15 | Chg30d=+0.23% | Revisions=+33% | GrowthEPS=+14.5% | GrowthRev=+7.1%
[Analyst] Revisions Ratio: +57%