Westinghouse Air Brake Technologies (WBO:WAB) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Westinghouse Air Brake Technologies Operating Margin % Related Terms
Westinghouse Air Brake Technologies Operating 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 Operating Margin % Chart
WBO:WAB vs NSC, CSX, TRN: Operating Margin % Comparison
For the Railroads subindustry, Westinghouse Air Brake Technologies's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's Operating Margin % falls into.
Westinghouse Air Brake Technologies Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 (WBO:WAB) has a Operating Margin % of 17.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Westinghouse Air Brake Technologies and its competitors. This is 50% above median its historical median of 11.65. Over the past decade, Westinghouse Air Brake Technologies' Operating Margin % has ranged from 8.09 to 16.06. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #260 out of 1007 companies in the Transportation industry, placing it in the top 25.8%.
Is Westinghouse Air Brake Technologies' Operating Margin % too high?
Westinghouse Air Brake Technologies' current Operating Margin % of 17.53% is 50% above median its 10-year median of 11.65. Over the past 10 years, this metric has ranged from a low of 8.09 to a high of 16.06. The Transportation industry median Operating Margin % is 7.37. Westinghouse Air Brake Technologies' value of 17.53% is 137.9% above this industry median. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #260 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Westinghouse Air Brake Technologies has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Westinghouse Air Brake Technologies' Operating Margin % compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #260 out of 1007 companies for Operating Margin %. This puts Westinghouse Air Brake Technologies in the upper half of its industry. The industry median Operating Margin % is 7.37. Westinghouse Air Brake Technologies' value of 17.53% is 137.9% above this benchmark. Historically, Westinghouse Air Brake Technologies' own Operating Margin % has ranged from 8.09 to 16.06 over the past decade. While the company's 10-year median is 11.65 vs. the industry median of 7.37, 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 Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current Operating Margin % of 17.53% is 137.9% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current Operating Margin % is 17.53%, which is 50% above median its own 10-year median of 11.65. 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?
Westinghouse Air Brake Technologies (WBO:WAB) has a current Operating Margin % of 17.53%. The stock's GF Value™ is €189.38, compared to a current price of €240.80 — trading 27.2% above its estimated fair value. The current Operating Margin % is 17.53%, which is 50% above median its 10-year median of 11.65 and 137.9% above the Transportation industry median of 7.37. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WBO:WAB), the current Operating Margin % is 17.53% 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 (WBO:WAB) Overvalued in 2026?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies stock appears to be overvalued.
The current stock price of €240.80 is trading 27.2% above its estimated GF Value™ of €189.38.
Key valuation signals for WBO:WAB:
Operating Margin %: 17.53% (50% above median its 10-year median of 11.65)
GF Value™: €189.38 vs. price of €240.80 (27.2% above fair value)
Industry Position: 137.9% above the Transportation median (#260 of 1007)
No single metric tells the full story. See the WBO: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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