WAB's ROA % is ranked better than 68.18% of 1015
companies
in the Transportation industry
Industry Median: 3.46
vs WAB: 5.69
Westinghouse Air Brake Technologies (NYSE:WAB) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Westinghouse Air Brake Technologies ROA % Related Terms
Westinghouse Air Brake Technologies ROA % 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.
For the Railroads subindustry, Westinghouse Air Brake Technologies's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Transportation Industry
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Westinghouse Air Brake Technologies (WAB) has a ROA % of 6.40% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Westinghouse Air Brake Technologies and its competitors. This is 63% above median its historical median of 3.93. Over the past decade, Westinghouse Air Brake Technologies' ROA % has ranged from 2.21 to 6.22. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #323 out of 1015 companies in the Transportation industry, placing it in the top 31.8%.
Is Westinghouse Air Brake Technologies' ROA % too high?
Westinghouse Air Brake Technologies' current ROA % of 6.40% is 63% above median its 10-year median of 3.93. Over the past 10 years, this metric has ranged from a low of 2.21 to a high of 6.22. The Transportation industry median ROA % is 3.46. Westinghouse Air Brake Technologies' value of 6.40% is 85% above this industry median. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #323 out of 1015 companies in the Transportation industry, which is above 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' ROA % compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #323 out of 1015 companies for ROA %. This puts Westinghouse Air Brake Technologies in the upper half of its industry. The industry median ROA % is 3.46. Westinghouse Air Brake Technologies' value of 6.40% is 85% above this benchmark. Historically, Westinghouse Air Brake Technologies' own ROA % has ranged from 2.21 to 6.22 over the past decade. While the company's 10-year median is 3.93 vs. the industry median of 3.46, 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 ROA % for a Transportation company?
The median ROA % among Transportation companies is 3.46, based on 1,015 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current ROA % of 6.40% is 85% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median ROA % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current ROA % is 6.40%, which is 63% above median its own 10-year median of 3.93. 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 ROA % is 6.40%, which is 63% above median its 10-year median of 3.93 and 85% above the Transportation industry median of 3.46. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WAB), the current ROA % is 6.40% 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:
ROA %: 6.40% (63% above median its 10-year median of 3.93)
GF Value™: $212.55 vs. price of $272.48 (28.2% above fair value)
Industry Position: 85% above the Transportation median (#323 of 1015)
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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