WAB
Wabtec
$294.21
▼ 0.3%Updated Aug 7, 11:30 AM ET
WAB at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 43/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 36.4% over the last 12 months
Market Cap
$46.17B
P/E
40.77x
Forward P/E (est.)
36.74x
ROE
11.0%
Revenue Growth
9.6%
EPS Growth
10.9%
Profit Margin
10.5%
FCF Yield
2.6%
Debt / Equity
0.5x
ROIC
8.0%
Interest Coverage
120.17x
Current Ratio
1.02x
Dividend Yield
0.5%
Implied Growth (rev. DCF)
5.6%
Rating Score
43/100
Wabtec (WAB) is a large-cap company in the Construction Machinery & Heavy Transportation Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $46.17B.
In its latest reported year it generated about $11.17B in revenue and $1.17B in net profit.
Our model rates WAB Neutral (43/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
32.3% average over the last 3 years
±2.1 pts around 30.1% across 10 years
grew in 8 of the last 9 year-over-year periods
positive in 10 of 10 years
8.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what WAB's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. WAB trades near $294.21, above its 50-day average ($265.12) and 200-day average ($234.71). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 50 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. WAB's is $7.55 (~2.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month WAB found buyers near $254.44 (support) and sellers near $284.91 (resistance); its 52-week range is $184.26–$284.91. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
9.3%
Revenue moved from $2.93B in 2016 to $11.17B in 2025, a 16.0% compound annual growth rate. The most recent year grew a steady 9.6% year over year. Slower, mature growth is common for established businesses.
Gross Margin
34.1%
Operating Margin
16.1%
Net Margin
10.5%
ROE
11.0%
Wabtec keeps about 10.5% of each sales dollar as net profit, with a 34.1% gross margin and 16.1% operating margin. Return on equity is 11.0% and return on invested capital about 8.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$6.54B
Net Debt
$6.02B
Net Debt / EBITDA
3.36x
Debt / Equity
0.5x
Leverage: debt-to-equity is 0.5x, and operating profit covers interest about 120.2x, with a current ratio of 1.0x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $6.54B of total debt against $514.00M of cash.
Operating CF
$1.76B
Free Cash Flow
$1.50B
FCF Margin
13.4%
In the latest year Wabtec produced about $1.76B of operating cash flow and $1.50B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.5%
Per share (latest FY)
$1.00
Total paid (latest FY)
$173.00M
History on record
10 years
dividend uses 12% of free cash flow
15% of net income paid out
total dividends increased 4 years in a row
no cuts in the last 10 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
40.77x
P/S
4.09x
P/B
3.54x
EV / EBITDA
—
WAB trades at 40.8x trailing earnings (about 36.7x on estimated forward earnings), 4.1x sales, and 3.5x book value. Reverse-engineering today's price implies the market expects roughly 5.6% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$207.54
Current price
$294.21
Starting FCF (latest 10-K)
$1.50B
Growth, years 1–5
9.6%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where WAB sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How WAB stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), WAB ranks #103 of 273 by our overall rating. It trades at a premium versus the sector on earnings (40.8x P/E vs. 32x median) with a lower return on equity (11.0% vs. 18.1%) and faster revenue growth (9.6% vs. 6.0%).
P/E vs sector
40.8x
median 32x
ROE vs sector
11.0%
median 18.1%
Growth vs sector
9.6%
median 6.0%
Sector rank
#103
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $294.21 today · expected CAGR -1% – 10%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $12.28B | $13.51B | $14.86B | $16.35B | $17.98B |
| Net income | $1.23B | $1.35B | $1.49B | $1.63B | $1.80B |
| EPS | $7.83 | $8.61 | $9.47 | $10.42 | $11.46 |
| Share price (low) | $195.68 | $215.25 | $236.77 | $260.45 | $286.49 |
| Share price (high) | $320.91 | $353.00 | $388.30 | $427.13 | $469.85 |
| CAGR (low–high) | -33% / 9% | -14% / 10% | -7% / 10% | -3% / 10% | -1% / 10% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for WAB:
- A conservative balance sheet (debt/equity 0.5x) lowers risk.
- As an established S&P 500 member in Industrials, it brings scale and a long operating history.
The case against WAB:
- A rich 40.8x earnings multiple prices in a lot of growth.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 40.8x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Wabtec is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 40.8x earnings, which our model scores Neutral (43/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 18 Wall Street analysts covering WAB recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
WAB's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
WAB — frequently asked questions
Is WAB a good stock to buy?
We don't give buy or sell advice. Our model rates Wabtec Neutral (43/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is WAB's rating on The Stocks School?
Wabtec currently scores 43/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does WAB's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Wabtec's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for WAB calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this WAB analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell WAB. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.