Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.63
WAB's Cash to Debt is ranked higher than
79% of the 1004 Companies
in the Global Railroads industry.

( Industry Median: 0.33 vs. WAB: 0.63 )
WAB' s 10-Year Cash to Debt Range
Min: 0   Max: 1.56
Current: 0.63

0
1.56
Equity to Asset 0.56
WAB's Equity to Asset is ranked higher than
80% of the 971 Companies
in the Global Railroads industry.

( Industry Median: 0.47 vs. WAB: 0.56 )
WAB' s 10-Year Equity to Asset Range
Min: -0.41   Max: 0.56
Current: 0.56

-0.41
0.56
F-Score: 5
Z-Score: 5.84
M-Score: -2.03
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 17.04
WAB's Operating margin (%) is ranked higher than
87% of the 997 Companies
in the Global Railroads industry.

( Industry Median: 6.62 vs. WAB: 17.04 )
WAB' s 10-Year Operating margin (%) Range
Min: 6.74   Max: 25.67
Current: 17.04

6.74
25.67
Net-margin (%) 11.39
WAB's Net-margin (%) is ranked higher than
86% of the 998 Companies
in the Global Railroads industry.

( Industry Median: 3.99 vs. WAB: 11.39 )
WAB' s 10-Year Net-margin (%) Range
Min: -6.53   Max: 11.39
Current: 11.39

-6.53
11.39
ROE (%) 18.43
WAB's ROE (%) is ranked higher than
95% of the 974 Companies
in the Global Railroads industry.

( Industry Median: 6.43 vs. WAB: 18.43 )
WAB' s 10-Year ROE (%) Range
Min: -22.81   Max: 78.63
Current: 18.43

-22.81
78.63
ROA (%) 10.36
WAB's ROA (%) is ranked higher than
96% of the 1000 Companies
in the Global Railroads industry.

( Industry Median: 3.11 vs. WAB: 10.36 )
WAB' s 10-Year ROA (%) Range
Min: -7.72   Max: 19.61
Current: 10.36

-7.72
19.61
ROC (Joel Greenblatt) (%) 58.75
WAB's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 997 Companies
in the Global Railroads industry.

( Industry Median: 7.59 vs. WAB: 58.75 )
WAB' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 16.69   Max: 78.8
Current: 58.75

16.69
78.8
Revenue Growth (%) 19.10
WAB's Revenue Growth (%) is ranked higher than
93% of the 839 Companies
in the Global Railroads industry.

( Industry Median: 4.40 vs. WAB: 19.10 )
WAB' s 10-Year Revenue Growth (%) Range
Min: -23.4   Max: 56.5
Current: 19.1

-23.4
56.5
EBITDA Growth (%) 26.20
WAB's EBITDA Growth (%) is ranked higher than
94% of the 731 Companies
in the Global Railroads industry.

( Industry Median: 2.50 vs. WAB: 26.20 )
WAB' s 10-Year EBITDA Growth (%) Range
Min: -25.3   Max: 40.3
Current: 26.2

-25.3
40.3
EPS Growth (%) 33.10
WAB's EPS Growth (%) is ranked higher than
92% of the 608 Companies
in the Global Railroads industry.

( Industry Median: 7.30 vs. WAB: 33.10 )
WAB' s 10-Year EPS Growth (%) Range
Min: -43.3   Max: 50.1
Current: 33.1

-43.3
50.1
» WAB's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

WAB Guru Trades in Q1 2013

Jim Simons 107,600 sh (New)
Paul Tudor Jones 4,500 sh (New)
Steven Cohen 9,613 sh (+232.86%)
Columbia Wanger 642,000 sh (unchged)
Mariko Gordon 599,351 sh (unchged)
First Pacific Advisors 1,900 sh (-5%)
John Keeley 545,858 sh (-7.85%)
Chuck Royce 1,351,119 sh (-15.95%)
Joel Greenblatt 2,205 sh (-91.21%)
» More
Q2 2013

WAB Guru Trades in Q2 2013

Steven Cohen 82,507 sh (+329.14%)
Paul Tudor Jones 30,400 sh (+237.78%)
Mariko Gordon 1,228,200 sh (+104.92%)
First Pacific Advisors 3,800 sh (unchged)
Columbia Wanger 1,284,000 sh (unchged)
Joel Greenblatt Sold Out
John Keeley 1,030,418 sh (-5.61%)
Chuck Royce 2,004,038 sh (-25.84%)
Jim Simons 26,200 sh (-87.83%)
» More
Q3 2013

WAB Guru Trades in Q3 2013

Ron Baron 50,870 sh (New)
Paul Tudor Jones 63,000 sh (+107.24%)
Jim Simons Sold Out
John Keeley 988,813 sh (-4.04%)
Mariko Gordon 1,160,607 sh (-5.5%)
Columbia Wanger 1,200,000 sh (-6.54%)
Chuck Royce 1,577,653 sh (-21.28%)
First Pacific Advisors 2,800 sh (-26.32%)
Steven Cohen 44,900 sh (-45.58%)
» More
Q4 2013

WAB Guru Trades in Q4 2013

Ron Baron 366,750 sh (+620.96%)
Columbia Wanger 1,200,000 sh (unchged)
First Pacific Advisors 2,800 sh (unchged)
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
Mariko Gordon 1,077,114 sh (-7.19%)
Chuck Royce 1,311,353 sh (-16.88%)
John Keeley 566,008 sh (-42.76%)
» More
» Details

Insider Trades

Latest Guru Trades with WAB

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Keeley 2013-12-31 Reduce -42.76%0.47%$62.44 - $74.16 $ 70.825%566008
Mariko Gordon 2013-12-31 Reduce -7.19%0.24%$62.44 - $74.16 $ 70.825%1077114
Ron Baron 2013-12-31 Add 620.96%0.09%$62.44 - $74.16 $ 70.825%366750
Mariko Gordon 2013-09-30 Reduce -5.5%0.18%$53.3 - $62.97 $ 70.8221%1160607
Ron Baron 2013-09-30 New Buy0.02%$53.3 - $62.97 $ 70.8221%50870
Mariko Gordon 2013-06-30 Add 104.92%1.64%$48.44 - $56.03 $ 70.8234%1228200
Joel Greenblatt 2013-06-30 Sold Out 0.01%$48.44 - $56.03 $ 70.8234%0
Joel Greenblatt 2013-03-31 Reduce -91.21%0.12%$43.77 - $51.06 $ 70.8249%2205
Joel Greenblatt 2012-12-31 Add 88.85%0.06%$39.81 - $44.35 $ 70.8269%25081
Joel Greenblatt 2012-09-30 Reduce -45.55%0.06%$37.14 - $41.44 $ 70.8280%13281
Ron Baron 2012-06-30 Sold Out 0.14%$34.59 - $40.57 $ 70.8290%0
Joel Greenblatt 2012-03-31 Add 183.61%0.12%$34.4 - $39 $ 70.82107%28647
Ron Baron 2012-03-31 Reduce -33.33%0.07%$34.4 - $39 $ 70.82107%300000
Ray Dalio 2011-12-31 Sold Out 0.11%$25.08 - $35 $ 70.82120%0
Joel Greenblatt 2011-12-31 Reduce -27.46%0.03%$25.08 - $35 $ 70.82120%10101
Joel Greenblatt 2011-09-30 New Buy0.12%$25.92 - $34.41 $ 70.82135%13924
Ron Baron 2011-03-31 Reduce -43.75%0.13%$25.73 - $33.61 $ 70.82153%450000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Westinghouse Air Brake Technologies Corp

Baron Funds Comments on Westinghouse Air Brake Technologies - Feb 20, 2014

The Fund also added to its holdings in Westinghouse Air Brake Technologies Corporation (WAB), or "Wabtec." The company is a leading provider of component parts and services to the global rail industry. The company dates back to 1869, and it was an original part of George Westinghouse's industrial empire. Today, Wabtec is a leading supplier of critical components, such as airbrakes, couplers, doors, and electronics, to railcar and locomotive manufacturers. Once installed on these train platforms, Wabtec becomes an integral aftermarket service provider to various railroad operators and transportation authorities. As rail volumes naturally increase when the economy strengthens, more strain is placed on rail infrastructure assets, and Wabtec's aftermarket parts business benefits.



Wabtec is also a key vendor to mass transit systems, an area where we see attractive long term growth potential, as governments focus on reducing highway congestion via light rail and high-speed passenger train investments. In addition, Wabtec offers diversified international growth with nearly 50% of its revenues emanating overseas, where the addressable market opportunities are larger, the margins higher, and Wabtec's relative market share lower, all offering a runway for growth. Finally, Wabtec represents a key investment in rail safety initiatives through its leadership in Positive Train Control (PTC) technology. Positive Train Control, an on- board GPS system for locomotive engineers, may represent the greatest potential growth for Wabtec. With PTC, movement-related information, such as speed limits, track changes, signal aspects and work zones are passed through a digital communications network and displayed on a computer screen inside the locomotive. The onboard computer, with location information provided via GPS, is designed to automatically initiate braking if the engineer fails to properly do so, similar to an autopilot feature. PTC was embraced in a rail safety bill signed into U.S. law in 2007. The bill mandated the widespread domestic adoption of this safety technology by 2015. Currently, Wabtec is the only major player with an advanced commercial PTC offering. The company's bookings in this field are accelerating and represent its highest margin revenue source. (Matt Weiss)



From Baron Funds' fourth quarter letter 2013 to shareholders.



Check out Ron Baron latest stock trades

Top Ranked Articles about Westinghouse Air Brake Technologies Corp

Baron Funds Comments on Westinghouse Air Brake Technologies
The Fund also added to its holdings in Westinghouse Air Brake Technologies Corporation (WAB), or "Wabtec." The company is a leading provider of component parts and services to the global rail industry. The company dates back to 1869, and it was an original part of George Westinghouse's industrial empire. Today, Wabtec is a leading supplier of critical components, such as airbrakes, couplers, doors, and electronics, to railcar and locomotive manufacturers. Once installed on these train platforms, Wabtec becomes an integral aftermarket service provider to various railroad operators and transportation authorities. As rail volumes naturally increase when the economy strengthens, more strain is placed on rail infrastructure assets, and Wabtec's aftermarket parts business benefits. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 23.60
WAB's P/E(ttm) is ranked higher than
55% of the 805 Companies
in the Global Railroads industry.

( Industry Median: 16.70 vs. WAB: 23.60 )
WAB' s 10-Year P/E(ttm) Range
Min: 8.94   Max: 35.16
Current: 23.6

8.94
35.16
P/B 4.40
WAB's P/B is ranked lower than
69% of the 946 Companies
in the Global Railroads industry.

( Industry Median: 1.20 vs. WAB: 4.40 )
WAB' s 10-Year P/B Range
Min: 1.74   Max: 4.96
Current: 4.4

1.74
4.96
P/S 2.67
WAB's P/S is ranked lower than
69% of the 992 Companies
in the Global Railroads industry.

( Industry Median: 0.96 vs. WAB: 2.67 )
WAB' s 10-Year P/S Range
Min: 0.74   Max: 3.08
Current: 2.67

0.74
3.08
PFCF 35.20
WAB's PFCF is ranked lower than
57% of the 493 Companies
in the Global Railroads industry.

( Industry Median: 15.71 vs. WAB: 35.20 )
WAB' s 10-Year PFCF Range
Min: 6.95   Max: 40.6
Current: 35.2

6.95
40.6
EV-to-EBIT 16.10
WAB's EV-to-EBIT is ranked higher than
63% of the 893 Companies
in the Global Railroads industry.

( Industry Median: 16.40 vs. WAB: 16.10 )
WAB' s 10-Year EV-to-EBIT Range
Min: 6.6   Max: 20.5
Current: 16.1

6.6
20.5
PEG 1.00
WAB's PEG is ranked higher than
76% of the 461 Companies
in the Global Railroads industry.

( Industry Median: 1.40 vs. WAB: 1.00 )
WAB' s 10-Year PEG Range
Min: 0.31   Max: 23.27
Current: 1

0.31
23.27
Shiller P/E 36.60
WAB's Shiller P/E is ranked lower than
56% of the 517 Companies
in the Global Railroads industry.

( Industry Median: 18.98 vs. WAB: 36.60 )
WAB' s 10-Year Shiller P/E Range
Min: 11.81   Max: 44.38
Current: 36.6

11.81
44.38

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.20
WAB's Dividend Yield is ranked lower than
96% of the 743 Companies
in the Global Railroads industry.

( Industry Median: 2.00 vs. WAB: 0.20 )
WAB' s 10-Year Dividend Yield Range
Min: 0.06   Max: 0.29
Current: 0.2

0.06
0.29
Dividend Payout 0.04
WAB's Dividend Payout is ranked higher than
99% of the 615 Companies
in the Global Railroads industry.

( Industry Median: 0.33 vs. WAB: 0.04 )
WAB' s 10-Year Dividend Payout Range
Min: 0.01   Max: 0.08
Current: 0.04

0.01
0.08
Dividend growth (3y) 86.60
WAB's Dividend growth (3y) is ranked higher than
100% of the 459 Companies
in the Global Railroads industry.

( Industry Median: 0.40 vs. WAB: 86.60 )
WAB' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 86.6
Current: 86.6

0
86.6
Yield on cost (5-Year) 2.60
WAB's Yield on cost (5-Year) is ranked higher than
65% of the 762 Companies
in the Global Railroads industry.

( Industry Median: 1.95 vs. WAB: 2.60 )
WAB' s 10-Year Yield on cost (5-Year) Range
Min: 0.78   Max: 3.77
Current: 2.6

0.78
3.77
Share Buyback Rate -0.30
WAB's Share Buyback Rate is ranked higher than
79% of the 616 Companies
in the Global Railroads industry.

( Industry Median: -1.00 vs. WAB: -0.30 )
WAB' s 10-Year Share Buyback Rate Range
Min: 13.2   Max: -18.9
Current: -0.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 16.50
WAB's Price/Tangible Book is ranked lower than
79% of the 890 Companies
in the Global Railroads industry.

( Industry Median: 1.20 vs. WAB: 16.50 )
WAB' s 10-Year Price/Tangible Book Range
Min: 5.16   Max: 307.5
Current: 16.5

5.16
307.5
Price/DCF (Projected) 1.80
WAB's Price/DCF (Projected) is ranked higher than
55% of the 458 Companies
in the Global Railroads industry.

( Industry Median: 1.30 vs. WAB: 1.80 )
WAB' s 10-Year Price/DCF (Projected) Range
Min: 0.89   Max: 2.59
Current: 1.8

0.89
2.59
Price/Median PS Value 1.80
WAB's Price/Median PS Value is ranked lower than
68% of the 949 Companies
in the Global Railroads industry.

( Industry Median: 1.10 vs. WAB: 1.80 )
WAB' s 10-Year Price/Median PS Value Range
Min: 0.37   Max: 1.92
Current: 1.8

0.37
1.92
Price/Peter Lynch Fair Value 1.10
WAB's Price/Peter Lynch Fair Value is ranked higher than
58% of the 252 Companies
in the Global Railroads industry.

( Industry Median: 1.10 vs. WAB: 1.10 )
WAB' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.48   Max: 2.11
Current: 1.1

0.48
2.11
Price/Graham Number 4.10
WAB's Price/Graham Number is ranked lower than
74% of the 734 Companies
in the Global Railroads industry.

( Industry Median: 1.00 vs. WAB: 4.10 )
WAB' s 10-Year Price/Graham Number Range
Min: 1.88   Max: 20.5
Current: 4.1

1.88
20.5
Earnings Yield (Greenblatt) 6.20
WAB's Earnings Yield (Greenblatt) is ranked higher than
68% of the 917 Companies
in the Global Railroads industry.

( Industry Median: 6.00 vs. WAB: 6.20 )
WAB' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.9   Max: 15.1
Current: 6.2

4.9
15.1
Forward Rate of Return (Yacktman) 23.75
WAB's Forward Rate of Return (Yacktman) is ranked higher than
92% of the 705 Companies
in the Global Railroads industry.

( Industry Median: 3.93 vs. WAB: 23.75 )
WAB' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -25.5   Max: 36
Current: 23.75

-25.5
36

Business Description

Industry: Transportation & Logistics » Railroads
Compare:TRN, UNP, EJPRY, CSX, MTRJY » details
Traded in other countries:WB2.Germany
Westinghouse Air Brake Technologies Corp. is incorporated in Delaware. It is a provider of value-added, technology-based products and services for the rail industry. The Company's products enhance safety, improve productivity and reduce maintenance costs for customers, and many of its core products and services are essential in the safe and efficient operation of freight rail and passenger transit vehicles. The Company provides its products and services through two main business segments, the Freight Group and the Transit Group, both of which have different market characteristics and business drivers. The Freight Group mainly manufactures and services components for new and existing freight cars and locomotives, builds new switcher locomotives and rebuilds freight locomotives. Customers include large, publicly traded railroads, leasing companies and manufacturers of original equipment such as locomotives and freight cars around the world. The Transit Group mainly manufactures and services components for new and existing passenger transit vehicles, typically subway cars and buses, builds new commuter locomotives and refurbishes subway cars. Customers include public transit authorities and municipalities, leasing companies and manufacturers of subway cars and buses around the world. Its customers include railroads throughout North America, as well as in the United Kingdom, Australia, Europe, Asia and South Africa; manufacturers of transportation equipment, such as locomotives, freight cars, subway vehicles and buses; lessors of such equipment; and passenger transit authorities, mainly those in North America. It operates in a competitive marketplace and face competition from a limited number of established competitors in the United States and abroad, some of which might have greater financial resources than it does. Within North America, New York Air Brake Company, a subsidiary of the German air brake producer Knorr-Bremse AG is its main overall OEM competitor. Its competition for locomotive, freight and passenger transit service and repair is mainly from the railroads' and passenger transit authorities' in-house operations, Electro-Motive Diesel, GE Transportation Systems, and New York Air Brake/Knorr.

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide