📊 WAB Key Takeaways
Is Westinghouse Air Brake Technologies Corp. (WAB) a Good Investment?
WAB exhibits strong revenue growth of 7.5% and solid operational margins (17.5%), but fundamentals reveal concerning capital efficiency issues with ROE of only 3.3% and ROA of 1.6%, combined with net income growth of just 0.3% despite revenue expansion, signaling operational leverage problems. Tight liquidity (current ratio 1.02x, quick ratio 0.54x) and a highly asset-intensive business model create vulnerability, though the company maintains adequate debt service capacity and positive free cash flow.
WAB shows solid fundamental quality with healthy revenue growth, strong operating and free cash flow generation, and durable margins for an industrial business. Profitability remains strong, with a 16.1% operating margin and 13.4% free cash flow margin, while leverage appears manageable relative to equity and cash generation. The main limitation is that net income growth has lagged revenue growth, suggesting investors should watch whether margin discipline and conversion to earnings remain intact.
Why Buy Westinghouse Air Brake Technologies Corp. Stock? WAB Key Strengths
- Revenue growth of 7.5% YoY demonstrates market demand in essential railroad equipment sector
- Excellent interest coverage ratio of 123.2x indicates strong debt service capability with minimal refinancing risk
- Positive free cash flow of $153.0M provides financial flexibility and runway for operations
- Strong margin profile with 34.1% gross margin, 16.1% operating margin, and 10.5% net margin
- Robust cash generation, including $1.76B operating cash flow and $1.50B free cash flow
- Manageable leverage with 0.50x debt-to-equity and ample earnings coverage of interest obligations
WAB Stock Risks: Westinghouse Air Brake Technologies Corp. Investment Risks
- Extremely poor capital efficiency: ROE of 3.3% and ROA of 1.6% indicate severe underperformance of asset base and shareholder returns
- Margin compression evident as net income grows only 0.3% while revenue grows 7.5%, suggesting operational leverage failure and cost control issues
- Liquidity stress with current ratio of 1.02x (barely above 1.0) and quick ratio of 0.54x (well below 1.0) indicates working capital constraints
- Net income growth was nearly flat despite 7.5% revenue growth, which may indicate slower earnings conversion
- Liquidity is only adequate, with a 1.11x current ratio and 0.57x quick ratio
- Long-term debt of $5.54B remains meaningful and could reduce flexibility if operating conditions weaken
Key Metrics to Watch
- Operating margin trend (current 17.5%) to detect continued compression despite revenue growth
- ROE and ROA progression to assess whether capital efficiency improves or continues deteriorating
- Free cash flow to net income conversion ratio (currently 42%) and working capital management trends
- Net income and operating margin progression relative to revenue growth
- Free cash flow conversion and balance sheet liquidity
Westinghouse Air Brake Technologies Corp. (WAB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Westinghouse Air Brake Technologies Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WAB Profit Margin, ROE & Profitability Analysis
WAB vs Industrial Sector: How Westinghouse Air Brake Technologies Corp. Compares
How Westinghouse Air Brake Technologies Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Westinghouse Air Brake Technologies Corp. Stock Overvalued? WAB Valuation Analysis 2026
Based on fundamental analysis, Westinghouse Air Brake Technologies Corp. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Westinghouse Air Brake Technologies Corp. Balance Sheet: WAB Debt, Cash & Liquidity
WAB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Westinghouse Air Brake Technologies Corp.'s revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.53 reflects profitable operations.
WAB Revenue Growth, EPS Growth & YoY Performance
WAB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.6B | $322.0M | $1.88 |
| Q3 2025 | $2.7B | $283.0M | $1.63 |
| Q2 2025 | $2.6B | $289.0M | $1.64 |
| Q1 2025 | $2.5B | $272.0M | $1.53 |
| Q3 2024 | $2.6B | $240.0M | $1.33 |
| Q2 2024 | $2.4B | $191.0M | $1.06 |
| Q1 2024 | $2.2B | $169.0M | $0.93 |
| Q3 2023 | $2.1B | $160.0M | $0.88 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Westinghouse Air Brake Technologies Corp. Dividends, Buybacks & Capital Allocation
WAB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Westinghouse Air Brake Technologies Corp. (CIK: 0000943452)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WAB
What is the AI rating for WAB?
Westinghouse Air Brake Technologies Corp. (WAB) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WAB's key strengths?
Claude: Revenue growth of 7.5% YoY demonstrates market demand in essential railroad equipment sector. Excellent interest coverage ratio of 123.2x indicates strong debt service capability with minimal refinancing risk. ChatGPT: Strong margin profile with 34.1% gross margin, 16.1% operating margin, and 10.5% net margin. Robust cash generation, including $1.76B operating cash flow and $1.50B free cash flow.
What are the risks of investing in WAB?
Claude: Extremely poor capital efficiency: ROE of 3.3% and ROA of 1.6% indicate severe underperformance of asset base and shareholder returns. Margin compression evident as net income grows only 0.3% while revenue grows 7.5%, suggesting operational leverage failure and cost control issues. ChatGPT: Net income growth was nearly flat despite 7.5% revenue growth, which may indicate slower earnings conversion. Liquidity is only adequate, with a 1.11x current ratio and 0.57x quick ratio.
What is WAB's revenue and growth?
Westinghouse Air Brake Technologies Corp. reported revenue of $3.0B.
Does WAB pay dividends?
Westinghouse Air Brake Technologies Corp. pays dividends, with $53.0M distributed to shareholders in the trailing twelve months.
Where can I find WAB SEC filings?
Official SEC filings for Westinghouse Air Brake Technologies Corp. (CIK: 0000943452) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WAB's EPS?
Westinghouse Air Brake Technologies Corp. has a diluted EPS of $2.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WAB a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Westinghouse Air Brake Technologies Corp. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WAB stock overvalued or undervalued?
Valuation metrics for WAB: ROE of 3.3% (sector avg: 15%), net margin of 12.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy WAB stock in 2026?
Our dual AI analysis gives Westinghouse Air Brake Technologies Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WAB's free cash flow?
Westinghouse Air Brake Technologies Corp.'s operating cash flow is $199.0M, with capital expenditures of $46.0M. FCF margin is 5.2%.
How does WAB compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 12.3% (avg: 10%), ROE 3.3% (avg: 15%), current ratio 1.02 (avg: 1.8).