Westinghouse Air Brake Technologies (WAB) AI Stock Analysis

• Market Cap: $30.35B
• Dividend Yield: 0.47%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.19
• Revenue Growth: 7.34%
• EPS Growth: 32.91%
• Country: US
• Employees: 29,500
• Sector: Industrials
• Sector Strength: 66
• Industry: Transportation
• EPS (TTM): 6.04
• Shares Outstanding: 170,848,140
• 10 Day Avg. Volume: 1,512,003
• 30 Day Avg. Volume: 1,256,465
• PEG Ratio: 0.89
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.99
• Price to Cash Flow (P/CF): 10.70
• P/FCF Ratio: 12.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $222.00
• Price Target Upside: 24.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Wabtec's robust financial performance and strategic growth initiatives drive a strong overall stock score. However, the current technical indicators point to bearish momentum, and high valuation relative to peers tempers the outlook. The company's guidance and successful earnings call reflect confidence in future growth, supported by international market strength and strategic acquisitions.

Positive Factors

Strategic Acquisitions

The acquisition of Evident's Inspection Technologies division doubles the size of the total addressable market for WAB's Digital Intelligence business from $8bn to $16bn.

Technology Advancements

The Rail Ghost project, an autonomous car inspection machine, could help save tens of millions of dollars in annual inspection costs.

Negative Factors

Earnings Performance

WAB traded off -9% following a 4Q miss and a softer than expected 2025 guide as midpoints of revenue and EPS trailed consensus.

Westinghouse Air Brake Technologies Business Overview & Revenue Model

Company Description

Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec, is a leading global provider of equipment, systems, digital solutions, and value-added services for the freight and transit rail sectors. The company operates through two main segments: Freight and Transit. Wabtec's core products and services include locomotives, freight cars, components, and digital technologies designed to enhance the efficiency, safety, and productivity of rail operations worldwide.

How the Company Makes Money

Wabtec generates revenue through the sale of its diverse range of products and services to the freight rail and transit industries. The company's key revenue streams include the manufacturing and sale of locomotives and freight cars, as well as aftermarket services such as maintenance, repair, and parts replacement. Additionally, Wabtec earns income from its digital solutions, which offer advanced analytics and monitoring for rail operations, helping customers optimize performance and reduce costs. The company also engages in significant partnerships and long-term contracts with major rail operators and government entities, which contribute to its stable revenue base.

Westinghouse Air Brake Technologies Financial Statement Overview

Summary

Westinghouse Air Brake Technologies exhibits strong financial health with consistent revenue growth, improved profit margins, and robust cash flow. The company's balance sheet is solid, with manageable leverage and strong equity, ensuring sustainability and growth potential.

Income Statement

Westinghouse Air Brake Technologies has demonstrated strong revenue growth, with a 7.2% increase in the most recent year. Gross profit and net profit margins have improved significantly, with the net profit margin reaching 16.9%. EBIT and EBITDA margins are solid, indicating efficient operations and a strong ability to generate earnings.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. The return on equity has improved, indicating effective use of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of financing from equity.

Cash Flow

Operating cash flow is strong, outpacing net income, which suggests high-quality earnings. Free cash flow growth is robust, with a notable increase in the latest year. The company effectively converts its earnings into cash, demonstrating strong liquidity and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.39B	9.68B	8.36B	7.82B	7.56B
	Gross Profit
3.37B	2.94B	2.29B	2.13B	1.90B
	EBIT
1.61B	1.27B	1.06B	954.00M	859.50M
	EBITDA
1.61B	1.79B	1.52B	1.41B	1.23B
	Net Income Common Stockholders
1.06B	815.00M	633.00M	558.00M	414.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
715.00M	620.00M	541.00M	473.00M	598.70M
	Total Assets
18.70B	18.99B	18.52B	18.45B	18.45B
	Total Debt
3.98B	4.38B	4.00B	4.06B	3.79B
	Net Debt
3.27B	3.76B	3.46B	3.58B	3.19B
	Total Liabilities
8.57B	8.46B	8.37B	8.21B	8.30B
	Stockholders Equity
10.09B	10.49B	10.10B	10.20B	10.12B
Cash Flow		Free Cash Flow
1.63B	1.01B	889.00M	943.00M	647.30M
	Operating Cash Flow
1.83B	1.20B	1.04B	1.07B	783.70M
	Investing Cash Flow
-343.00M	-492.00M	-235.00M	-540.00M	-155.40M
	Financing Cash Flow
-1.37B	-633.00M	-708.00M	-653.00M	-619.00M

Westinghouse Air Brake Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 177.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAB, the sentiment is Negative. The current price of 177.65 is below the 20-day moving average (MA) of 192.31, below the 50-day MA of 195.29, and below the 200-day MA of 179.85, indicating a bearish trend. The MACD of -5.44 indicates Positive momentum. The RSI at 33.68 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAB.

Westinghouse Air Brake Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNP	80 Outperform	$147.27B	21.79	39.95%	2.16%	0.54%	6.06%
NSC	74 Outperform	$55.65B	21.24	18.33%	2.20%	-0.27%	43.87%
TRN	72 Outperform	$2.54B	18.91	10.59%	3.79%	3.21%	29.59%
CNR	71 Outperform	C$88.52B	20.13	21.13%	2.51%	1.30%	-18.15%
CSX	70 Outperform	$59.11B	17.47	27.74%	1.53%	-0.80%	―
WAB	69 Neutral	$30.35B	29.41	10.46%	0.47%	7.34%	32.91%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

Westinghouse Air Brake Technologies Corporate Events

Wabtec Highlights Strong Financial Performance and Growth

On February 18, 2025, Wabtec released an investor presentation detailing its financial performance and strategic outlook. The presentation highlighted strong financial results, including an achievement of their five-year plan within three years, and emphasized their focus on profitability and growth through various strategic initiatives. The company also addressed potential risks and uncertainties that could impact future performance, emphasizing the resilience of its portfolio and significant recurring revenue base.

Wabtec Reports Strong Q4 2024 Results and 2025 Guidance

On February 12, 2025, Wabtec Corporation announced its fourth quarter 2024 results, highlighting a strong financial performance with a 2.3% year-over-year sales increase and substantial cash from operations. The adjusted earnings per share rose by 9.1% compared to the previous year, and the company reported a significant 52.7% increase in cash flow from operations for the full year 2024. Additionally, Wabtec provided its 2025 financial guidance, projecting a 13.1% increase in adjusted EPS at the midpoint. The company also announced a 25% hike in its quarterly dividend and expanded its share buyback authorization by $1 billion, reflecting robust shareholder returns and confidence in future growth.

Wabtec to Acquire Evident for $1.78 Billion

On January 14, 2025, Wabtec Corporation announced its definitive agreement to acquire Evident Inspection Technologies for $1.78 billion. Evident, a leader in Non-Destructive Testing and Remote Visual Inspection, will augment Wabtec’s capabilities in the rail, mining, and industrial sectors while broadening its reach into complementary sectors. The acquisition, which is expected to close in the first half of 2025, will double Wabtec’s total addressable market to $16 billion, and is anticipated to be slightly accretive to Adjusted EPS in the first year. This strategic move aligns with Wabtec’s long-term vision to drive innovation, productivity, safety, and reliability in mission-critical assets globally.