Westinghouse Air Brake Technologies Corporation [NYSE:WAB]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Westinghouse Air Brake Technologies Corporation [WAB] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give WAB an Outperform rating. Its stock price has been found in the range of 42.27 to 78.35. This is compared to its latest closing price of $73.28.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Westinghouse Air Brake Technologies Corporation [WAB] is sitting at 1.92. This is compared to 1 month ago, when its average rating was 1.92.
For the quarter ending in Sep-18 Westinghouse Air Brake Technologies Corporation [WAB] generated $1.08 billion in sales. That’s 7.14% higher than the average estimate of $1.01 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 19 Feb (In 9 Days).
Fundamental Analysis of Westinghouse Air Brake Technologies Corporation [WAB]
Now let’s turn to look at profitability: with a current Operating Margin for Westinghouse Air Brake Technologies Corporation [WAB] sitting at +15.37 and its Gross Margin at +25.35, this company’s Net Margin is now 7.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 12.47, and its Return on Invested Capital has reached 7.80%. Its Return on Equity is 10.43, and its Return on Assets is 3.97. These metrics suggest that this Westinghouse Air Brake Technologies Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Westinghouse Air Brake Technologies Corporation [WAB] has generated a Total Debt to Total Equity ratio of 66.59. Similarly, its Total Debt to Total Capital is 39.97, while its Total Debt to Total Assets stands at 28.43. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 64.91, and its Long-Term Debt to Total Capital is 38.96. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 12.01 and its Total Debt to EBITDA Value is 2.67. The Enterprise Value to Sales for this firm is now 1.94, and its Total Debt to Enterprise Value stands at 0.20. Westinghouse Air Brake Technologies Corporation [WAB] has a Price to Book Ratio of 2.78, a Price to Cash Flow Ratio of 41.46 and P/E Ratio of 22.93. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Westinghouse Air Brake Technologies Corporation [WAB] earns $215,653 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.68 and its Total Asset Turnover is 0.59. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.97 and its Current Ratio is 1.44. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Westinghouse Air Brake Technologies Corporation [WAB] has 100.13M shares outstanding, amounting to a total market cap of $7.35B. Its stock price has been found in the range of 65.09 to 115.40. At its current price, it has moved by -36.40% from its 52-week high, and it has moved 12.77% from its 52-week low.
This stock’s Beta value is currently 1.41, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.22. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Westinghouse Air Brake Technologies Corporation [WAB] a Reliable Buy?
Westinghouse Air Brake Technologies Corporation [WAB] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.