Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Westinghouse Air Brake Technologies's 5-Year RORE % for the quarter that ended in Mar. 2026 was 14.79%.
HAM:WB2's 5-Year RORE % is ranked better than 66.59% of 835
companies
in the Transportation industry
Industry Median: 2.51
vs HAM:WB2: 14.79
Westinghouse Air Brake Technologies (HAM:WB2) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Westinghouse Air Brake Technologies 5-Year RORE % Related Terms
Westinghouse Air Brake Technologies 5-Year RORE % 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 5-Year RORE % Chart
HAM:WB2 vs NSC, CSX, TRN: 5-Year RORE % Comparison
For the Railroads subindustry, Westinghouse Air Brake Technologies's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's 5-Year RORE % 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.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
Westinghouse Air Brake Technologies (HAM:WB2) has a 5-Year RORE % of 14.79 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Westinghouse Air Brake Technologies and its competitors. According to the industry distribution chart, Westinghouse Air Brake Technologies ranks #279 out of 835 companies in the Transportation industry, placing it in the top 33.4%.
Is Westinghouse Air Brake Technologies' 5-Year RORE % too high?
Westinghouse Air Brake Technologies' current 5-Year RORE % is 14.79. The Transportation industry median 5-Year RORE % is 2.51. Westinghouse Air Brake Technologies' value of 14.79 is 489.2% above this industry median. Based on the distribution chart, Westinghouse Air Brake Technologies ranks #279 out of 835 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' 5-Year RORE % compare to NSC and CSX?
According to the Transportation industry distribution chart, Westinghouse Air Brake Technologies ranks #279 out of 835 companies for 5-Year RORE %. This puts Westinghouse Air Brake Technologies in the upper half of its industry. The industry median 5-Year RORE % is 2.51. Westinghouse Air Brake Technologies' value of 14.79 is 489.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Transportation company?
The median 5-Year RORE % among Transportation companies is 2.51, based on 835 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westinghouse Air Brake Technologies's current 5-Year RORE % of 14.79 is 489.2% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median 5-Year RORE % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current 5-Year RORE % is 14.79. 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 (HAM:WB2) has a current 5-Year RORE % of 14.79. The stock's GF Value™ is €185.93, compared to a current price of €234.70 — trading 26.2% above its estimated fair value. The current 5-Year RORE % is 14.79 and 489.2% above the Transportation industry median of 2.51. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Westinghouse Air Brake Technologies (HAM:WB2), the current 5-Year RORE % is 14.79 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 (HAM:WB2) Overvalued in 2026?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies stock appears to be overvalued.
The current stock price of €234.70 is trading 26.2% above its estimated GF Value™ of €185.93.
Key valuation signals for HAM:WB2:
5-Year RORE %: 14.79
GF Value™: €185.93 vs. price of €234.70 (26.2% above fair value)
Industry Position: 489.2% above the Transportation median (#279 of 835)
No single metric tells the full story. See the HAM:WB2 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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