Last Updated: 10 Nov 2024
Executive Summary
Westinghouse Air Brake Technologies Corp (WAB) is a leading provider of rail equipment and services. The company has a strong financial position with a market capitalization of $34.49 billion and an EBITDA of $2.11 billion. WAB's trailing PE ratio of 33.12 is in line with industry peers, and its forward PE ratio of 23.75 indicates potential for growth. The stock's current price of $200.69 is below the analyst target price of $202.78, suggesting a potential upside.
Company Overview
Wabtec Corporation, formerly known as Westinghouse Air Brake Technologies Corporation, is a global provider of rail equipment and services. The company's products include locomotives, freight cars, and signaling systems. WAB also provides maintenance and repair services. The company has a strong presence in North America, Europe, and Asia.
Fundamental Analysis
WAB's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 4.4% over the past five years. Net income has also grown at a CAGR of 5.6% over the same period. WAB's profit margin is 10.2%, which is above the industry average. The company's return on assets is 5.45% and its return on equity is 10.4%.
WAB's balance sheet is also strong. The company has $2.58 billion in cash and equivalents and $1.3 billion in long-term debt. WAB's debt-to-equity ratio is 0.52, which is below the industry average.
Technical Analysis
WAB's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is 62, which indicates that the stock is overbought. However, the moving average convergence divergence (MACD) is positive, which indicates that the stock is still trending higher.
Short Term Outlook
WAB's stock price is likely to continue to trend higher in the short term. The company's strong financial performance and positive technical indicators suggest that the stock is still undervalued. However, the stock is overbought and could be due for a pullback.
Long Term Outlook
WAB's long-term outlook is positive. The company is a leader in the rail equipment industry and is well-positioned to benefit from the growing demand for rail transportation. WAB's strong financial position and commitment to innovation should allow the company to continue to grow in the years to come.
Analyst Recommendations
Analysts are bullish on WAB's stock. The consensus analyst rating is "buy" and the average analyst target price is $202.78. Three analysts have a "strong buy" rating on the stock, five have a "buy" rating, and four have a "hold" rating. No analysts have a "sell" or "strong sell" rating on the stock.
