(WAB) Westinghouse Air Brake - Ratings and Ratios
Locomotives, Braking, Electronics, HVAC, Signaling, Services
WAB EPS (Earnings per Share)
WAB Revenue
Description: WAB Westinghouse Air Brake October 08, 2025
Westinghouse Air Brake Technologies Corporation (WAB) designs, manufactures, and services a broad portfolio of rail-related technologies for freight and passenger markets worldwide, including diesel-electric and LNG-powered locomotives, propulsion systems, marine and mining equipment, and a suite of digital solutions such as positive train control, IoT-enabled analytics, and asset performance management.
Its product line extends to braking hardware (electronically controlled pneumatic brakes, brake shoes, discs, pads), rail-car components (trucks, HVAC systems, heat-transfer units), and ancillary systems like pantographs, auxiliary power converters, and passenger-information displays, supporting both rail operators and shipper logistics platforms.
WAB also delivers a range of services-locomotive overhauls, modernizations, refurbishment, long-term parts agreements, and maintenance-of-way solutions-providing recurring revenue streams tied to the lifecycle of rail assets.
Key economic drivers for WAB include: (1) U.S. and global freight-rail volume growth, which has averaged ~3%-4% annually over the past five years; (2) increasing capital-expenditure cycles in rail infrastructure, buoyed by the bipartisan infrastructure law and European rail-modernization programs; and (3) the industry’s shift toward lower-emission power sources, creating demand for LNG-powered and emerging battery-electric locomotives-segments where WAB holds a competitive technology base.
Recent performance metrics (as of FY 2024 Q3) show revenue of $2.1 billion, a 7% year-over-year increase driven largely by higher locomotive orders and service contracts, and an order backlog of roughly $3.2 billion, indicating a multi-year revenue visibility cushion.
Given the capital-intensive nature of rail assets and the long-term service contracts that underpin WAB’s cash flow, analysts should closely monitor freight-rail traffic trends, infrastructure funding pipelines, and the pace of regulatory adoption of positive-train-control standards, as deviations in any of these variables could materially affect earnings outlook.
For a deeper quantitative assessment, you may find ValueRay’s analyst dashboards useful for exploring WAB’s valuation sensitivities and peer comparisons.
WAB Stock Overview
| Market Cap in USD | 33,670m |
| Sub-Industry | Construction Machinery & Heavy Transportation Equipment |
| IPO / Inception | 1995-06-20 |
WAB Stock Ratings
| Growth Rating | 61.7% |
| Fundamental | 70.8% |
| Dividend Rating | 65.9% |
| Return 12m vs S&P 500 | -10.9% |
| Analyst Rating | 4.08 of 5 |
WAB Dividends
| Dividend Yield 12m | 0.60% |
| Yield on Cost 5y | 2.00% |
| Annual Growth 5y | 13.62% |
| Payout Consistency | 97.2% |
| Payout Ratio | 9.5% |
WAB Growth Ratios
| Growth Correlation 3m | 65.9% |
| Growth Correlation 12m | 9.1% |
| Growth Correlation 5y | 96.6% |
| CAGR 5y | 31.68% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.35 |
| CAGR/Mean DD 3y (Pain Ratio) | 6.46 |
| Sharpe Ratio 12m | 0.38 |
| Alpha | -14.41 |
| Beta | 1.097 |
| Volatility | 22.97% |
| Current Volume | 1225.3k |
| Average Volume 20d | 755.2k |
| Stop Loss | 195.5 (-3%) |
| Signal | 0.67 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (1.18b TTM) > 0 and > 6% of Revenue (6% = 647.1m TTM) |
| FCFTA 0.07 (>2.0%) and ΔFCFTA -2.03pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 15.99% (prev 10.58%; Δ 5.40pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.07 (>3.0%) and CFO 1.49b > Net Income 1.18b (YES >=105%, WARN >=100%) |
| Net Debt (4.76b) to EBITDA (2.28b) ratio: 2.09 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.42 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (171.2m) change vs 12m ago -1.67% (target <= -2.0% for YES) |
| Gross Margin 33.72% (prev 32.27%; Δ 1.46pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 53.70% (prev 55.41%; Δ -1.71pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 8.55 (EBITDA TTM 2.28b / Interest Expense TTM 210.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.00
| (A) 0.08 = (Total Current Assets 5.79b - Total Current Liabilities 4.06b) / Total Assets 21.53b |
| (B) 0.17 = Retained Earnings (Balance) 3.72b / Total Assets 21.53b |
| (C) 0.09 = EBIT TTM 1.79b / Avg Total Assets 20.09b |
| (D) 0.30 = Book Value of Equity 3.12b / Total Liabilities 10.43b |
| Total Rating: 2.00 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 70.78
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 3.66% = 1.83 |
| 3. FCF Margin 13.04% = 3.26 |
| 4. Debt/Equity 0.48 = 2.39 |
| 5. Debt/Ebitda 2.09 = -0.17 |
| 6. ROIC - WACC (= 0.19)% = 0.24 |
| 7. RoE 11.14% = 0.93 |
| 8. Rev. Trend 89.40% = 6.71 |
| 9. EPS Trend 92.14% = 4.61 |
What is the price of WAB shares?
Over the past week, the price has changed by +4.20%, over one month by +2.01%, over three months by +4.68% and over the past year by +6.54%.
Is Westinghouse Air Brake a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WAB is around 225.60 USD . This means that WAB is currently undervalued and has a potential upside of +11.93% (Margin of Safety).
Is WAB a buy, sell or hold?
- Strong Buy: 6
- Buy: 1
- Hold: 5
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the WAB price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 228.4 | 13.3% |
| Analysts Target Price | 228.4 | 13.3% |
| ValueRay Target Price | 252.3 | 25.2% |
WAB Fundamental Data Overview October 25, 2025
P/E Trailing = 28.6681
P/E Forward = 23.753
P/S = 3.1878
P/B = 3.1318
P/EG = 3.92
Beta = 1.097
Revenue TTM = 10.79b USD
EBIT TTM = 1.79b USD
EBITDA TTM = 2.28b USD
Long Term Debt = 3.48b USD (from longTermDebt, last fiscal year)
Short Term Debt = 251.0m USD (from shortTermDebt, last quarter)
Debt = 5.29b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.76b USD (from netDebt column, last quarter)
Enterprise Value = 38.43b USD (33.67b + Debt 5.29b - CCE 528.0m)
Interest Coverage Ratio = 8.55 (Ebit TTM 1.79b / Interest Expense TTM 210.0m)
FCF Yield = 3.66% (FCF TTM 1.41b / Enterprise Value 38.43b)
FCF Margin = 13.04% (FCF TTM 1.41b / Revenue TTM 10.79b)
Net Margin = 10.94% (Net Income TTM 1.18b / Revenue TTM 10.79b)
Gross Margin = 33.72% ((Revenue TTM 10.79b - Cost of Revenue TTM 7.15b) / Revenue TTM)
Gross Margin QoQ = 34.72% (prev 34.66%)
Tobins Q-Ratio = 1.79 (Enterprise Value 38.43b / Total Assets 21.53b)
Interest Expense / Debt = 1.23% (Interest Expense 65.0m / Debt 5.29b)
Taxrate = 26.35% (112.0m / 425.0m)
NOPAT = 1.32b (EBIT 1.79b * (1 - 26.35%))
Current Ratio = 1.42 (Total Current Assets 5.79b / Total Current Liabilities 4.06b)
Debt / Equity = 0.48 (Debt 5.29b / totalStockholderEquity, last quarter 11.10b)
Debt / EBITDA = 2.09 (Net Debt 4.76b / EBITDA 2.28b)
Debt / FCF = 3.38 (Net Debt 4.76b / FCF TTM 1.41b)
Total Stockholder Equity = 10.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.48% (Net Income 1.18b / Total Assets 21.53b)
RoE = 11.14% (Net Income TTM 1.18b / Total Stockholder Equity 10.59b)
RoCE = 12.76% (EBIT 1.79b / Capital Employed (Equity 10.59b + L.T.Debt 3.48b))
RoIC = 9.01% (NOPAT 1.32b / Invested Capital 14.68b)
WACC = 8.82% (E(33.67b)/V(38.96b) * Re(10.06%) + D(5.29b)/V(38.96b) * Rd(1.23%) * (1-Tc(0.26)))
Discount Rate = 10.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.15%
[DCF Debug] Terminal Value 71.69% ; FCFE base≈1.48b ; Y1≈1.52b ; Y5≈1.69b
Fair Price DCF = 124.6 (DCF Value 21.30b / Shares Outstanding 171.0m; 5y FCF grow 2.31% → 3.0% )
EPS Correlation: 92.14 | EPS CAGR: 23.44% | SUE: 0.32 | # QB: 0
Revenue Correlation: 89.40 | Revenue CAGR: 8.50% | SUE: 0.05 | # QB: 0
Additional Sources for WAB Stock
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Fund Manager Positions: Dataroma | Stockcircle