WAB Stock Analysis: Westinghouse Air Brake | NYSE
Railroads | NYSE, USA | Market Cap: 50.334m USD | 12M Return: 53.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 246M
EPS Trend: 99.0%
Qual. Beats: 2
Rev. Trend: 97.5%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
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: 1.26b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.30 > 1.0 |
| NWC/Revenue: 5.46% < 20% (prev 26.02%; Δ -20.56% < -1%) |
| CFO/TA 0.08 > 3% & CFO 1.75b > Net Income 1.26b |
| Net Debt (5.90b) to EBITDA (2.43b): 2.43 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (170.1m) vs 12m ago -0.64% < -2% |
| Gross Margin: 34.33% > 18% (prev 33.28%; Δ 1.05% > 0.5%) |
| Asset Turnover: 55.06% > 50% (prev 51.80%; Δ 3.26% > 0%) |
| Interest Coverage Ratio: 7.05 > 6 (EBIT TTM 1.97b / Interest Expense TTM 279.0m) |
| A: 0.03 (Total Current Assets 6.04b - Total Current Liabilities 5.39b) / Total Assets 23.1b |
| B: 0.20 (Retained Earnings 4.53b / Total Assets 23.1b) |
| C: 0.09 (EBIT TTM 1.97b / Avg Total Assets 21.8b) |
| D: 0.95 (Book Value of Equity 11.2b / Total Liabilities 11.9b) |
| Altman-Z'' = 2.42 = A |
| DSRI: 0.96 (Receivables 2.17b/2.00b, Revenue 12.0b/10.6b) |
| GMI: 0.97 (GM 33.28% / 34.33%) |
| AQI: 1.08 (AQ_t 0.67 / AQ_t-1 0.62) |
| SGI: 1.13 (Revenue 12.0b / 10.6b) |
| TATA: -0.02 (NI 1.26b - CFO 1.75b) / TA 23.1b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of July 28, 2026, the stock is trading at USD 300.90 with a total of 856,646 shares traded. Over the past week, the price has changed by +16.70%, over one month by +12.15%, over three months by +12.74% and over the past year by +53.48%.
Current recommended Stop Loss: 290.50 (which is 3.5% or 1.2 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 | 301.3 | 0.1% |
P/E Trailing = 39.055
P/E Forward = 23.753
P/S = 4.1285
P/B = 4.3681
P/EG = 1.368
Revenue TTM = 12.0b USD
EBIT TTM = 1.97b USD
EBITDA TTM = 2.43b USD
Long Term Debt = 4.92b USD (from longTermDebt, last quarter)
Short Term Debt = 1.66b USD (from shortTermDebt, last quarter)
Debt = 6.57b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.90b USD (calculated: Debt 6.57b - CCE 670.0m)
Enterprise Value = 56.2b USD (50.3b + Debt 6.57b - CCE 670.0m)
Interest Coverage Ratio = 7.05 (Ebit TTM 1.97b / Interest Expense TTM 279.0m)
EV/FCF = 32.77x (Enterprise Value 56.2b / FCF TTM 1.72b)
FCF Yield = 3.05% (FCF TTM 1.72b / Enterprise Value 56.2b)
FCF Margin = 14.32% (FCF TTM 1.72b / Revenue TTM 12.0b)
Net Margin = 10.55% (Net Income TTM 1.26b / Revenue TTM 12.0b)
Gross Margin = 34.33% ((Revenue TTM 12.0b - Cost of Revenue TTM 7.87b) / Revenue TTM)
Gross Margin QoQ = 36.52% (prev 35.97%)
Tobins Q-Ratio = 2.43 (Enterprise Value 56.2b / Total Assets 23.1b)
Interest Expense / Debt = 4.25% (Interest Expense 279.0m / Debt 6.57b)
Taxrate = 24.60% (415.0m / 1.69b)
NOPAT = 1.48b (EBIT 1.97b * (1 - 24.60%))
Current Ratio = 1.12 (Total Current Assets 6.04b / Total Current Liabilities 5.39b)
Debt / Equity = 0.58 (Debt 6.57b / totalStockholderEquity, last quarter 11.2b)
Debt / EBITDA = 2.43 (Net Debt 5.90b / EBITDA 2.43b)
Debt / FCF = 3.44 (Net Debt 5.90b / FCF TTM 1.72b)
Total Stockholder Equity = 11.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.81% (Net Income 1.26b / Total Assets 23.1b)
RoE = 11.32% (Net Income TTM 1.26b / Total Stockholder Equity 11.2b)
RoCE = 12.22% (EBIT 1.97b / Capital Employed (Equity 11.2b + L.T.Debt 4.92b))
RoIC = 7.89% (NOPAT 1.48b / Invested Capital 18.8b)
WACC = 8.71% (E(50.3b)/V(56.9b) * Re(9.43%) + D(6.57b)/V(56.9b) * Rd(4.25%) * (1-Tc(0.25)))
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.80 | Cagr: -1.80%
[DCF] Terminal Value 76.81% ; FCFF base≈1.61b ; Y1≈1.85b ; Y5≈2.72b
[DCF] Fair Price = 192.7 (EV 38.4b - Net Debt 5.90b = Equity 32.5b / Shares 168.9m; r=8.71% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.04 | EPS CAGR: 21.20% | SUE: 1.36 | # QB: 2
Revenue Correlation: 97.48 | Revenue CAGR: 7.69% | SUE: 1.95 | # QB: 1
EPS current Quarter (2026-09-30): EPS=2.75 | Chg30d=+0.05% | Revisions=+40% | Analysts=10
EPS current Year (2026-12-31): EPS=10.63 | Chg30d=+0.16% | Revisions=+62% | GrowthEPS=+18.6% | GrowthRev=+10.9%
EPS next Year (2027-12-31): EPS=12.17 | Chg30d=+0.14% | Revisions=+40% | GrowthEPS=+14.5% | GrowthRev=+7.1%
[Analyst] Revisions Ratio: +71% (up=13, down=1)