Westinghouse Air Brake Technologies (NYSE:WAB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Westinghouse Air Brake Technologies had a gross margin of 35.97% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Westinghouse Air Brake Technologies Gross Margin % Related Terms
Westinghouse Air Brake Technologies Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Westinghouse Air Brake Technologies Gross Margin % Chart
For the Railroads subindustry, Westinghouse Air Brake Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Westinghouse Air Brake Technologies Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Westinghouse Air Brake Technologies (WAB) has a Gross Margin % of 35.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Westinghouse Air Brake Technologies and its competitors. This is 19% above median its historical median of 30.34. Over the past decade, Westinghouse Air Brake Technologies' Gross Margin % has ranged from 27.44 to 34.48. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #240 out of 985 companies in the Transportation industry, placing it in the top 24.4%.
Is Westinghouse Air Brake Technologies' Gross Margin % too high?
Westinghouse Air Brake Technologies' current Gross Margin % of 35.97% is 19% above median its 10-year median of 30.34. Over the past 10 years, this metric has ranged from a low of 27.44 to a high of 34.48. The Transportation industry median Gross Margin % is 20.42. Westinghouse Air Brake Technologies' value of 35.97% is 76.2% above this industry median. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #240 out of 985 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Westinghouse Air Brake Technologies has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Westinghouse Air Brake Technologies' Gross Margin % compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #240 out of 985 companies for Gross Margin %. This places Westinghouse Air Brake Technologies in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.42. Westinghouse Air Brake Technologies' value of 35.97% is 76.2% above this benchmark. Historically, Westinghouse Air Brake Technologies' own Gross Margin % has ranged from 27.44 to 34.48 over the past decade. While the company's 10-year median is 30.34 vs. the industry median of 20.42, Westinghouse Air Brake Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.42, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current Gross Margin % of 35.97% is 76.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median Gross Margin % is 20.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current Gross Margin % is 35.97%, which is 19% above median its own 10-year median of 30.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westinghouse Air Brake Technologies stock overvalued right now?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies (WAB) is currently considered Modestly Overvalued. The stock's GF Value™ is $212.55, compared to a current price of $272.48 — trading 28.2% above its estimated fair value. The current Gross Margin % is 35.97%, which is 19% above median its 10-year median of 30.34 and 76.2% above the Transportation industry median of 20.42. Westinghouse Air Brake Technologies' overall GF Score™ is 89/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WAB), the current Gross Margin % is 35.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Westinghouse Air Brake Technologies (WAB) Overvalued in 2026?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies stock appears to be overvalued.
The current stock price of $272.48 is trading 28.2% above its estimated GF Value™ of $212.55.
GuruFocus considers Westinghouse Air Brake Technologies to be Modestly Overvalued.
Key valuation signals for WAB:
Gross Margin %: 35.97% (19% above median its 10-year median of 30.34)
GF Value™: $212.55 vs. price of $272.48 (28.2% above fair value)
Industry Position: 76.2% above the Transportation median (#240 of 985)
No single metric tells the full story. See the WAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Westinghouse Air Brake Technologies Business Description
Westinghouse Air Brake Technologies Corp provides value-added, technology-based products and services for the freight rail and passenger transit industries and the mining, marine, and industrial markets. It provides its products and services through two main business segments: Freight and Transit. The company generates maximum revenue from the Freight segment, which manufactures new and modernized locomotives, provides aftermarket parts and services to existing locomotives, provides components to new and existing freight cars; builds new commuter locomotives; supplies rail control and infrastructure products, including electronics, positive train control equipment, signal design, and engineering services. Geographically, it generates a majority of its revenue from the United States.
89GF Score
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