WAB

Westinghouse Air Brake Technologies Corporation

Fundamental data last updated:November 3, 2026

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company profile

SECTOR

Industrials

industry

Railroads

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Westinghouse Air Brake Technologies Corporation (WAB) delivers a comprehensive suite of advanced technological solutions, equipment, and services tailored for the global freight railway and urban mass transit sectors. Its operations are bifurcated into two principal divisions: Freight and Transit. The Freight segment develops, produces, and maintains critical components for both newly manufactured and operational freight carriages and locomotives. This includes constructing brand-new commuter-focused locomotives, undertaking comprehensive rebuilding of freight locomotives, and delivering sophisticated railway electronic systems, positive train control (PTC) technology, signal design expertise, and related engineering provisions. This segment also furnishes essential heat exchange and cooling apparatus. Its clientele encompasses major publicly listed railway operators, equipment leasing firms, original equipment manufacturers (OEMs) of locomotives and freight cars, and various utility companies. The Transit segment is responsible for the production and upkeep of components utilized in both new and existing passenger conveyance systems, including regional and high-speed trains, subway cars, light-rail vehicles, and buses. This division also renovates subway cars and supplies HVAC (heating, ventilation, and air conditioning) systems, alongside doors for both buses and subways. This division caters to public transit agencies, municipal governments, leasing corporations, and manufacturers specializing in subway cars and buses. Beyond these core offerings, the company's extensive product portfolio further includes advanced electronically controlled pneumatic braking systems, various railway electronic devices, robust freight car undercarriages, crucial draft gears, couplers, and slack adjusters, as well as air compression and drying units. They also offer diverse heat exchange and cooling solutions, track and switch apparatus, and comprehensive railway braking components. WAB manufactures new switcher locomotives, friction products, and provides extensive overhaul, modernization, and refurbishment services for both transit and freight locomotives and cars. Additionally, their offerings extend to platform screen doors, pantographs, window assemblies, specialized couplers, accessibility lifts and ramps for public transport vehicles, and traction motors. Established in 1869, the company maintains its corporate headquarters in Pittsburgh, Pennsylvania.

 


VALUATION

P/E

36.71

Market Cap ($M USD)

$44.34B

Forward P/E

20.85

PEG

0.27

PRICE TO SALES

3.85

PRICE TO BOOK

3.98

EV / EBITDA

21.89

5-Year Average P/E

Free Cash Flow Yield

3.71%

DCF Value

$260.45

Graham Number

$102.49

Price to FCF

26.99

EV to FCF

30.87

Earnings Yield

2.72%

FCF Yield

3.71%

DIVIDEND

Yield

0.43%

Annual Payout

$1.12

Payout Ratio

15.12%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$7.12

Next Year EPS Growth Estimate

$12.53

Next Year Revenue Growth Estimate

$13.65B

Return on Equity (ROE)

10.94%

FREE CASH FLOW

Operating Margin

16.10%

Debt-to-Equity

0.50

Piotroski F-Score

6

Altman Z-Score

3.23

Return on Invested Capital (ROIC)

10.67%

Current Ratio

1.02

Quick Ratio

0.54

Net Debt to EBITDA

2.76

Interest Coverage

7.41

Gross Profit margin

33.81%

FCF PER SHARE

$9.66

REVENUE PER SHARE

$67.69

Gainseekers Quantitative Analysis

Summary

The market’s current pricing of WAB suggests a cautious optimism. Trading slightly below its DCF value, the stock hints at a potential undervaluation, yet its Graham Number indicates a more conservative intrinsic worth. The Forward P/E of 21.21 reflects growth expectations, while the modest Earnings Yield of 2.68% suggests limited immediate income potential. However, with an Altman Z-score of 3.27, the company appears financially stable, indicating a low risk of distress. This blend of metrics paints a picture of a company poised for growth but priced with precision.

AI Exposure / Tech Reliance

In the railroads industry, WAB is uniquely positioned to leverage AI and tech advancements for operational efficiency. The integration of AI can optimize logistics and predictive maintenance, crucial for a sector reliant on precision and uptime. As technology reshapes transportation, WAB's adaptability will be key to maintaining its competitive edge.

The Bull Case

For the discerning GARP investor, WAB offers compelling strengths. A robust ROIC of 10.67% underscores its efficient capital use, while a Piotroski F-Score of 6 indicates solid financial health. The company's operating margin of 16.10% and a modest FCF Yield suggest effective cost management and cash generation. These metrics highlight WAB's ability to maintain pricing power and deliver shareholder value, making it an attractive buy for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, WAB faces significant valuation challenges. The Price/Book ratio of 4.05 and Price/Sales of 3.92 signal a premium valuation, potentially limiting upside. With a Price to FCF of 27.44, the stock appears expensive relative to its cash flow generation. Additionally, its proximity to the 52-week high suggests technical overextension, raising caution for potential investors wary of buying at a peak.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$305.00

Institutional Ownership %

1-Year Beta

0.94

Insider Buying % (6 Mo)

Distance to 52-Week High

9.03%

Distance to 52-Week Low

29.49%

EARNINGS SURPRISE %

7.97%

50-DAY SMA

$265.12

200-DAY SMA

$234.71

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.