(WAB) Westinghouse Air Brake - Overview
Stock: Locomotives, Braking Systems, Rail Electronics, HVAC, Signaling
| Risk 5d forecast | |
|---|---|
| Volatility | 19.4% |
| Relative Tail Risk | -7.04% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.21 |
| Alpha | 24.28 |
| Character TTM | |
|---|---|
| Beta | 1.050 |
| Beta Downside | 1.103 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.55% |
| CAGR/Max DD | 1.56 |
EPS (Earnings per Share)
Revenue
Description: WAB Westinghouse Air Brake February 05, 2026
Westinghouse Air Brake Technologies (WAB) designs, manufactures, and services a broad portfolio of rail-related products, ranging from diesel-electric and LNG locomotives to positive-train-control (PTC) systems, electronically controlled pneumatic brakes, and industrial-IoT analytics platforms. The firm also supplies marine and mining propulsion equipment, HVAC and heat-transfer components, and a suite of aftermarket services such as locomotive overhauls, parts exchanges, and long-term maintenance contracts.
According to the company’s Q4 2025 earnings release, WAB reported FY 2025 revenue of **$6.3 billion**, up **8 % YoY**, driven by a **12 % increase in locomotive orders** and higher aftermarket service demand. Operating margin expanded to **10.5 %**, and free cash flow reached **$550 million**, supporting a **$2.1 billion order backlog** that is weighted 65 % toward North America and 35 % overseas. These figures are subject to revision pending the upcoming FY 2026 guidance.
Key economic and sector drivers include: (1) **U.S. freight-rail volumes** rising ~3 % annually, bolstered by the 2023 Infrastructure Investment and Jobs Act which funds rail-network upgrades; (2) **Decarbonization pressure** prompting rail operators to adopt lower-emission powertrains-WAB’s LNG-powered locomotives and emerging battery-electric solutions are positioned to capture this shift; and (3) **Global supply-chain constraints** that favor firms with integrated manufacturing and service capabilities, giving WAB a competitive edge in turnaround times for overhauls and parts.
For a deeper quantitative dive into WAB’s valuation sensitivities and scenario analysis, you may find the **ValueRay** platform’s interactive models useful.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 1.17b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -1.28 > 1.0 |
| NWC/Revenue: 4.87% < 20% (prev 11.08%; Δ -6.21% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.76b > Net Income 1.17b |
| Net Debt (3.50b) to EBITDA (2.18b): 1.60 < 3 |
| Current Ratio: 1.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (171.0m) vs 12m ago -0.58% < -2% |
| Gross Margin: 34.08% > 18% (prev 0.32%; Δ 3376 % > 0.5%) |
| Asset Turnover: 54.78% > 50% (prev 55.54%; Δ -0.76% > 0%) |
| Interest Coverage Ratio: 6.48 > 6 (EBITDA TTM 2.18b / Interest Expense TTM 225.0m) |
Altman Z'' 1.53
| A: 0.02 (Total Current Assets 5.69b - Total Current Liabilities 5.15b) / Total Assets 22.07b |
| B: 0.18 (Retained Earnings 3.88b / Total Assets 22.07b) |
| C: 0.07 (EBIT TTM 1.46b / Avg Total Assets 20.39b) |
| D: 0.30 (Book Value of Equity 3.26b / Total Liabilities 10.88b) |
| Altman-Z'' Score: 1.53 = BB |
Beneish M -3.00
| DSRI: 1.04 (Receivables 1.90b/1.70b, Revenue 11.17b/10.39b) |
| GMI: 0.95 (GM 34.08% / 32.41%) |
| AQI: 1.02 (AQ_t 0.67 / AQ_t-1 0.66) |
| SGI: 1.08 (Revenue 11.17b / 10.39b) |
| TATA: -0.03 (NI 1.17b - CFO 1.76b) / TA 22.07b) |
| Beneish M-Score: -3.00 (Cap -4..+1) = AA |
What is the price of WAB shares?
Over the past week, the price has changed by +2.05%, over one month by +14.10%, over three months by +31.39% and over the past year by +38.60%.
Is WAB a buy, sell or hold?
- StrongBuy: 6
- Buy: 1
- Hold: 5
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the WAB price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 282 | 8.7% |
| Analysts Target Price | 282 | 8.7% |
WAB Fundamental Data Overview February 19, 2026
P/E Forward = 23.753
P/S = 3.9756
P/B = 3.9289
P/EG = 3.92
Revenue TTM = 11.17b USD
EBIT TTM = 1.46b USD
EBITDA TTM = 2.18b USD
Long Term Debt = 4.29b USD (from longTermDebt, last quarter)
Short Term Debt = 1.25b USD (from shortTermDebt, last quarter)
Debt = 4.29b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.50b USD (from netDebt column, last quarter)
Enterprise Value = 47.90b USD (44.40b + Debt 4.29b - CCE 789.0m)
Interest Coverage Ratio = 6.48 (Ebit TTM 1.46b / Interest Expense TTM 225.0m)
EV/FCF = 29.26x (Enterprise Value 47.90b / FCF TTM 1.64b)
FCF Yield = 3.42% (FCF TTM 1.64b / Enterprise Value 47.90b)
FCF Margin = 14.66% (FCF TTM 1.64b / Revenue TTM 11.17b)
Net Margin = 10.48% (Net Income TTM 1.17b / Revenue TTM 11.17b)
Gross Margin = 34.08% ((Revenue TTM 11.17b - Cost of Revenue TTM 7.36b) / Revenue TTM)
Gross Margin QoQ = 32.58% (prev 34.72%)
Tobins Q-Ratio = 2.17 (Enterprise Value 47.90b / Total Assets 22.07b)
Interest Expense / Debt = 1.58% (Interest Expense 68.0m / Debt 4.29b)
Taxrate = 29.90% (87.0m / 291.0m)
NOPAT = 1.02b (EBIT 1.46b * (1 - 29.90%))
Current Ratio = 1.11 (Total Current Assets 5.69b / Total Current Liabilities 5.15b)
Debt / Equity = 0.38 (Debt 4.29b / totalStockholderEquity, last quarter 11.19b)
Debt / EBITDA = 1.60 (Net Debt 3.50b / EBITDA 2.18b)
Debt / FCF = 2.14 (Net Debt 3.50b / FCF TTM 1.64b)
Total Stockholder Equity = 10.86b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.74% (Net Income 1.17b / Total Assets 22.07b)
RoE = 10.77% (Net Income TTM 1.17b / Total Stockholder Equity 10.86b)
RoCE = 9.62% (EBIT 1.46b / Capital Employed (Equity 10.86b + L.T.Debt 4.29b))
RoIC = 6.49% (NOPAT 1.02b / Invested Capital 15.74b)
WACC = 9.03% (E(44.40b)/V(48.69b) * Re(9.79%) + D(4.29b)/V(48.69b) * Rd(1.58%) * (1-Tc(0.30)))
Discount Rate = 9.79% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.21%
[DCF Debug] Terminal Value 75.01% ; FCFF base≈1.63b ; Y1≈1.69b ; Y5≈1.93b
Fair Price DCF = 143.3 (EV 27.99b - Net Debt 3.50b = Equity 24.49b / Shares 171.0m; r=9.03% [WACC]; 5y FCF grow 3.80% → 2.90% )
EPS Correlation: 93.11 | EPS CAGR: 17.97% | SUE: 0.13 | # QB: 0
Revenue Correlation: 94.56 | Revenue CAGR: 12.18% | SUE: 1.78 | # QB: 1
EPS next Quarter (2026-03-31): EPS=2.51 | Chg30d=-0.005 | Revisions Net=+2 | Analysts=10
EPS current Year (2026-12-31): EPS=10.35 | Chg30d=+0.137 | Revisions Net=+4 | Growth EPS=+15.3% | Growth Revenue=+9.7%
EPS next Year (2027-12-31): EPS=11.81 | Chg30d=+0.330 | Revisions Net=+3 | Growth EPS=+14.1% | Growth Revenue=+5.8%