WAB (Westinghouse Air Brake Technologies) Beneish M-Score: -2.54 (As of Jun. 24, 2026)


WAB Westinghouse Air Brake Technologies Corp WAB
89 GF Score
Price $272.48
GF Value $212.55
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Westinghouse Air Brake Technologies Beneish M-Score?

Westinghouse Air Brake Technologies WAB +0.82% 89 Beneish M-Score is -2.54 as of Jun. 24, 2026. GuruFocus rates WAB with a GF Score™ of 89/100 and a GF Value™ of $212.55 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 966 Transportation companies, Westinghouse Air Brake Technologies ranks worse than 54.14% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Westinghouse Air Brake Technologies's Beneish M-Score or its related term are showing as below:

WAB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.56   Max: -1.55
Current: -2.54

During the past 13 years, the highest Beneish M-Score of Westinghouse Air Brake Technologies was -1.55. The lowest was -2.97. And the median was -2.56.

Westinghouse Air Brake Technologies Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Westinghouse Air Brake Technologies's Beneish M-Score can be seen below:

* 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 Beneish M-Score Chart

Westinghouse Air Brake Technologies Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.63 -2.58 -2.49 -2.70 -2.57

Westinghouse Air Brake Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.45 -2.59 -2.40 -2.57 -2.54

WAB vs NSC, CSX, TRN: Beneish M-Score Comparison

For the Railroads subindustry, Westinghouse Air Brake Technologies's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Transportation Industry

For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Westinghouse Air Brake Technologies's Beneish M-Score falls into.


WAB
89GF Score
Westinghouse Air Brake Technologies Corp WAB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Westinghouse Air Brake Technologies Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Westinghouse Air Brake Technologies for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0636+0.528 * 0.9534+0.404 * 1.0355+0.892 * 1.0959+0.115 * 1.0651
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1345+4.679 * -0.026125-0.327 * 1.1682
=-2.54

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $2,252 Mil.
Revenue was 2950 + 2965 + 2886 + 2706 = $11,507 Mil.
Gross Profit was 1061 + 966 + 1002 + 938 = $3,967 Mil.
Total Current Assets was $5,973 Mil.
Total Assets was $23,196 Mil.
Property, Plant and Equipment(Net PPE) was $1,653 Mil.
Depreciation, Depletion and Amortization(DDA) was $476 Mil.
Selling, General, & Admin. Expense(SGA) was $1,584 Mil.
Total Current Liabilities was $5,835 Mil.
Long-Term Debt & Capital Lease Obligation was $4,708 Mil.
Net Income was 362 + 202 + 310 + 336 = $1,210 Mil.
Non Operating Income was 23 + 3 + -1 + 24 = $49 Mil.
Cash Flow from Operations was 199 + 992 + 367 + 209 = $1,767 Mil.
 Total Receivables was $1,932 Mil.
Revenue was 2610 + 2583 + 2663 + 2644 = $10,500 Mil.
Gross Profit was 900 + 797 + 880 + 874 = $3,451 Mil.
Total Current Assets was $5,255 Mil.
Total Assets was $19,096 Mil.
Property, Plant and Equipment(Net PPE) was $1,462 Mil.
Depreciation, Depletion and Amortization(DDA) was $457 Mil.
Selling, General, & Admin. Expense(SGA) was $1,274 Mil.
Total Current Liabilities was $3,927 Mil.
Long-Term Debt & Capital Lease Obligation was $3,503 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2252 / 11507) / (1932 / 10500)
=0.195707 / 0.184
=1.0636

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3451 / 10500) / (3967 / 11507)
=0.328667 / 0.344747
=0.9534

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (5973 + 1653) / 23196) / (1 - (5255 + 1462) / 19096)
=0.671236 / 0.648251
=1.0355

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=11507 / 10500
=1.0959

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(457 / (457 + 1462)) / (476 / (476 + 1653))
=0.238145 / 0.223579
=1.0651

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1584 / 11507) / (1274 / 10500)
=0.137655 / 0.121333
=1.1345

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4708 + 5835) / 23196) / ((3503 + 3927) / 19096)
=0.454518 / 0.389087
=1.1682

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1210 - 49 - 1767) / 23196
=-0.026125

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Westinghouse Air Brake Technologies has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.54 mean?
Westinghouse Air Brake Technologies (WAB) has a Beneish M-Score of -2.54 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Westinghouse Air Brake Technologies and its competitors. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #523 out of 966 companies in the Transportation industry, placing it in the top 54.1%.
Is Westinghouse Air Brake Technologies' Beneish M-Score too high?
Westinghouse Air Brake Technologies' current Beneish M-Score is -2.54. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #523 out of 966 companies in the Transportation industry, which is below the industry midpoint. 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' Beneish M-Score compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #523 out of 966 companies for Beneish M-Score. This places Westinghouse Air Brake Technologies in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Transportation company?
A good Beneish M-Score depends on the Transportation industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Westinghouse Air Brake Technologies and its competitors. Westinghouse Air Brake Technologies's current Beneish M-Score is -2.54. 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 Beneish M-Score is -2.54. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WAB), the current Beneish M-Score is -2.54 as of Jun. 24, 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:

  • Beneish M-Score: -2.54
  • GF Value™: $212.55 vs. price of $272.48 (28.2% above fair value)
  • GF Score™: 89/100 with 8 warning signs

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

Address 30 Isabella Street, Pittsburgh, PA, USA, 15212
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

Get the complete analysis for WAB

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$272.48
Price
$212.55
GF Value