(WAB) Westinghouse Air Brake - NYSE
Sector: Industrials | Industry: Railroads | Exchange: NYSE (USA) | Market Cap: 47.925m USD | Total Return: 31.3% in 12m
Avg Turnover: 218M
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 Corporation (WAB) is a global supplier of locomotives, equipment, systems, and services for the freight rail and passenger transit industries. The company operates through two segments-Freight and Transit-and manufactures a broad portfolio that includes diesel-electric and LNG-powered locomotives, propulsion systems, braking components, railway electronics, and IoT-based asset performance management solutions.
Beyond new equipment, WAB generates recurring revenue from aftermarket and service activities such as locomotive overhauls, refurbishments, long-term parts arrangements, and maintenance services. Its product range extends to adjacent heavy-industrial applications, including marine, mining, turbochargers, and combustion systems, as well as bus-related electrification hardware such as charging solutions. The company serves both rail operators and public transit agencies, supplying items like HVAC systems, platform screen doors, pantographs, and passenger information systems.
Founded in 1869 and headquartered in Pittsburgh, Pennsylvania, WAB has roots in the late-19th-century expansion of North American railroads and has evolved into one of the largest pure-play rail equipment suppliers listed in the U.S. Industrials sector. The rail equipment industry is characterized by high barriers to entry due to stringent safety certifications, long product lifecycles, and entrenched relationships with Class I freight railroads and transit authorities, which tend to support a stable, service-heavy revenue mix for established players like WAB.
- Class I railroad capex cycle drives freight equipment orders
- Federal infrastructure bill funding expands transit segment backlog
- GE Transportation synergies and pricing offset steel cost inflation
| 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 27, 2026, the stock is trading at USD 269.53 with a total of 1,800,458 shares traded. Over the past week, the price has changed by -1.57%, over one month by +3.08%, over three months by +9.90% and over the past year by +31.30%.
Current recommended Stop Loss: 258.80 (which is 4% or 1.5 ATR below the current price).
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 | 11.3% |
P/E Trailing = 40.0071
P/E Forward = 23.753
P/S = 4.1649
P/B = 4.3164
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 = 54.3b USD (47.9b + Debt 6.92b - CCE 531.0m)
Interest Coverage Ratio = 7.36 (Ebit TTM 1.84b / Interest Expense TTM 250.0m)
EV/FCF = 33.06x (Enterprise Value 54.3b / FCF TTM 1.64b)
FCF Yield = 3.03% (FCF TTM 1.64b / Enterprise Value 54.3b)
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 = 2.34 (Enterprise Value 54.3b / 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 = 8.88% (E(47.9b)/V(54.8b) * Re(9.77%) + D(6.92b)/V(54.8b) * Rd(3.61%) * (1-Tc(0.25)))
Discount Rate = 9.77% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -2.04%
[DCF] Terminal Value 75.09% ; FCFF base≈1.57b ; Y1≈1.73b ; Y5≈2.21b
[DCF] Fair Price = 144.4 (EV 30.9b - Net Debt 6.39b = Equity 24.5b / Shares 169.7m; r=8.88% [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%