3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Westinghouse Air Brake Technologies's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 17.38%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
WAB's 3-Year ROIIC % is ranked better than 77.53% of 939
companies
in the Transportation industry
Industry Median: 1.88
vs WAB: 17.38
Westinghouse Air Brake Technologies (NYSE:WAB) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Westinghouse Air Brake Technologies 3-Year ROIIC % Related Terms
Westinghouse Air Brake Technologies 3-Year ROIIC % 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 3-Year ROIIC % Chart
For the Railroads subindustry, Westinghouse Air Brake Technologies's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1332.3783 (Dec. 2025) - 758.8566 (Dec. 2022) )
/
( 19130 (Dec. 2025) - 15831 (Dec. 2022) )
=
573.5217
/
3299
=
17.38%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Westinghouse Air Brake Technologies (WAB) has a 3-Year ROIIC % of 17.38 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Westinghouse Air Brake Technologies and its competitors. This is 1227% above median its historical median of 1.31. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #211 out of 939 companies in the Transportation industry, placing it in the top 22.5%.
Is Westinghouse Air Brake Technologies' 3-Year ROIIC % too high?
Westinghouse Air Brake Technologies' current 3-Year ROIIC % of 17.38 is 1227% above median its 10-year median of 1.31. The Transportation industry median 3-Year ROIIC % is 1.88. Westinghouse Air Brake Technologies' value of 17.38 is 824.5% above this industry median. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #211 out of 939 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 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Westinghouse Air Brake Technologies' 3-Year ROIIC % compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #211 out of 939 companies for 3-Year ROIIC %. This places Westinghouse Air Brake Technologies in the top 23% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 1.88. Westinghouse Air Brake Technologies' value of 17.38 is 824.5% above this benchmark. While the company's 10-year median is 1.31 vs. the industry median of 1.88, 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 3-Year ROIIC % for a Transportation company?
The median 3-Year ROIIC % among Transportation companies is 1.88, based on 939 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current 3-Year ROIIC % of 17.38 is 824.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median 3-Year ROIIC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current 3-Year ROIIC % is 17.38, which is 1227% above median its own 10-year median of 1.31. 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 $213.37, compared to a current price of $261.31 — trading 22.5% above its estimated fair value. The current 3-Year ROIIC % is 17.38, which is 1227% above median its 10-year median of 1.31 and 824.5% above the Transportation industry median of 1.88. Westinghouse Air Brake Technologies' overall GF Score™ is 90/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (WAB), the current 3-Year ROIIC % is 17.38 as of Dec. 2025. 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 $261.31 is trading 22.5% above its estimated GF Value™ of $213.37.
GuruFocus considers Westinghouse Air Brake Technologies to be Modestly Overvalued.
Key valuation signals for WAB:
3-Year ROIIC %: 17.38 (1227% above median its 10-year median of 1.31)
GF Value™: $213.37 vs. price of $261.31 (22.5% above fair value)
Industry Position: 824.5% above the Transportation median (#211 of 939)
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.
90GF Score
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