(WAB) Westinghouse Air Brake - Overview
Stock: Locomotives, Braking Systems, Rail Electronics, HVAC, Signaling
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.51% |
| Yield on Cost 5y | 1.25% |
| Yield CAGR 5y | 20.14% |
| Payout Consistency | 97.3% |
| Payout Ratio | 14.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 20.0% |
| Relative Tail Risk | -6.45% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.62 |
| Alpha | 2.95 |
| Character TTM | |
|---|---|
| Beta | 1.075 |
| Beta Downside | 1.013 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.55% |
| CAGR/Max DD | 1.47 |
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) 6.0
| Net Income: 1.18b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -2.03 > 1.0 |
| NWC/Revenue: 15.99% < 20% (prev 10.58%; Δ 5.40% < -1%) |
| CFO/TA 0.07 > 3% & CFO 1.49b > Net Income 1.18b |
| Net Debt (4.76b) to EBITDA (2.28b): 2.09 < 3 |
| Current Ratio: 1.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (171.2m) vs 12m ago -1.67% < -2% |
| Gross Margin: 33.72% > 18% (prev 0.32%; Δ 3340 % > 0.5%) |
| Asset Turnover: 53.70% > 50% (prev 55.41%; Δ -1.71% > 0%) |
| Interest Coverage Ratio: 8.55 > 6 (EBITDA TTM 2.28b / Interest Expense TTM 210.0m) |
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 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) |
| Altman-Z'' Score: 2.00 = BBB |
Beneish M -2.91
| DSRI: 1.18 (Receivables 2.20b/1.78b, Revenue 10.79b/10.33b) |
| GMI: 0.96 (GM 33.72% / 32.27%) |
| AQI: 0.99 (AQ_t 0.66 / AQ_t-1 0.67) |
| SGI: 1.04 (Revenue 10.79b / 10.33b) |
| TATA: -0.01 (NI 1.18b - CFO 1.49b) / TA 21.53b) |
| Beneish M-Score: -2.91 (Cap -4..+1) = A |
What is the price of WAB shares?
Over the past week, the price has changed by +7.03%, over one month by +11.49%, over three months by +21.03% and over the past year by +19.31%.
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 | 249.4 | 1.3% |
| Analysts Target Price | 249.4 | 1.3% |
| ValueRay Target Price | 320 | 29.9% |
WAB Fundamental Data Overview February 07, 2026
P/E Forward = 23.753
P/S = 3.8062
P/B = 3.726
P/EG = 3.92
Revenue TTM = 10.79b USD
EBIT TTM = 1.79b USD
EBITDA TTM = 2.28b USD
Long Term Debt = 5.29b USD (from longTermDebt, last quarter)
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 = 45.81b USD (41.05b + Debt 5.29b - CCE 528.0m)
Interest Coverage Ratio = 8.55 (Ebit TTM 1.79b / Interest Expense TTM 210.0m)
EV/FCF = 32.58x (Enterprise Value 45.81b / FCF TTM 1.41b)
FCF Yield = 3.07% (FCF TTM 1.41b / Enterprise Value 45.81b)
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 = 2.13 (Enterprise Value 45.81b / 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 = 5.87% (Net Income 1.18b / Total Assets 21.53b)
RoE = 11.14% (Net Income TTM 1.18b / Total Stockholder Equity 10.59b)
RoCE = 11.31% (EBIT 1.79b / Capital Employed (Equity 10.59b + L.T.Debt 5.29b))
RoIC = 8.76% (NOPAT 1.32b / Invested Capital 15.09b)
WACC = 8.85% (E(41.05b)/V(46.34b) * Re(9.87%) + D(5.29b)/V(46.34b) * Rd(1.23%) * (1-Tc(0.26)))
Discount Rate = 9.87% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.15%
[DCF Debug] Terminal Value 75.43% ; FCFF base≈1.48b ; Y1≈1.52b ; Y5≈1.69b
Fair Price DCF = 120.2 (EV 25.31b - Net Debt 4.76b = Equity 20.55b / Shares 171.0m; r=8.85% [WACC]; 5y FCF grow 2.31% → 2.90% )
EPS Correlation: 11.65 | EPS CAGR: -42.60% | SUE: -4.0 | # QB: 0
Revenue Correlation: 93.94 | Revenue CAGR: 9.23% | SUE: 0.05 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.49 | Chg30d=-0.008 | Revisions Net=+2 | Analysts=8
EPS next Year (2026-12-31): EPS=10.22 | Chg30d=+0.035 | Revisions Net=+4 | Growth EPS=+14.0% | Growth Revenue=+8.3%