Westinghouse Air Brake Technolo WAB
Wabtec is a global provider of equipment and services for the rail industry, including locomotives, braking systems, and digitalization solutions for freight and passenger transport. Wabtec shows solid growth (revenue +17.5%, earnings +18.9%) and an operating margin of 19.19%, but its valuation is demanding (P/E 38.76) and net debt/EBITDA of 2.37 adds sensitivity to rising rates. The $700 million Guinea contract is a positive catalyst that strengthens the order book.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Wabtec is a global provider of equipment and services for the rail industry, including locomotives, braking systems, and digitalization solutions for freight and passenger transport. Wabtec shows solid growth (revenue +17.5%, earnings +18.9%) and an operating margin of 19.19%, but its valuation is demanding (P/E 38.76) and net debt/EBITDA of 2.37 adds sensitivity to rising rates. The $700 million Guinea contract is a positive catalyst that strengthens the order book.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.0 |
| Quality / Moat | 5.4 |
| Valuation | 3.1 |
| Growth | 7.9 |
| Dividend | 3.7 |
| Momentum | 8.4 |
| Risk & Context | 6.2 |
OVERALL SCORE: 5.4/10
Context and risks
Exposure to emerging markets (Africa) with execution and currency risk, although the Guinea contract is a positive milestone. The industrial profile with net debt/EBITDA of 2.37 and operating margin of 19.19% is sensitive to rising rates, but the effect is partially mitigated by business strength.
News considered in the analysis
- Wabtec Secures $700M+ Rail Services Deal, Expands Africa Footprint — Contrato material de servicios de más de 700 millones de dólares que amplía la presencia en África; refuerza la cartera de pedidos y la visibilidad de ingresos a medio plazo.
- Westinghouse Air Brake Technologies (WAB) Following Its $700 Million Guinea Deal, Buying Opportunity Or Priced In? — Análisis sobre si el contrato de Guinea está descontado en el precio; la cobertura sugiere que parte del impacto ya se ha reflejado, pero el debate sobre valoración sigue abierto.
- Westinghouse Air Brake CEO Santana Sells 2,183 Shares for $612,000 — Venta de acciones por parte del CEO por un importe modesto; es una operación rutinaria y de baja cuantía, sin señal material sobre la marcha del negocio.
- Union Pacific Rolls Out First Two Battery-Electric Locomotives in California — Noticia sobre un cliente (Union Pacific) y su adopción de locomotoras eléctricas; no aporta información directa sobre Wabtec.
- 4 Dividend Stocks Built Around America’s Irreplaceable Freight Network — Listículo genérico sobre acciones de dividendos; sin información específica y nueva sobre Wabtec.
Verdict: Hold; operational strength and the Africa contract offset the demanding valuation, but rising rates and moderate leverage limit near-term upside.
Main risk: The demanding valuation (P/E 38.76) combined with net debt/EBITDA of 2.37 makes Wabtec vulnerable to a sustained rise in rates, which would compress the multiple and make debt refinancing more expensive.
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