Quality Investor

Westinghouse Air Brake Technologies Corporation

Rank #377Capital ReturnWatchlistCompare with other stocks

WAB · NYSE · Industrials

Westinghouse Air Brake Technologies Corporation (WAB) — Rank #377 by gross profitability (GP/assets 0.16) · ROE 10.3% · Piotroski F-Score 5 / 9.

As-of 2026-10-30 · CIK 0000943452 · all metrics point-in-time as of the filing date.

About

Westinghouse Air Brake Technologies Corporation provides locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide.

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It operates in two segments, Freight and Transit. It offers diesel-electric and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; electronically controlled pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, and train cruise and remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers, as well as heating, ventilation, and air conditioning (HVAC) systems; heat transfer components and systems; custom engineered burners and combustion systems; rail gear, signaling, and switch products; and turbochargers. Further, it offers freight locomotive overhauls, modernizations, and refurbishment; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; long-term parts arrangements; and way equipment maintenance services. Additionally, it provides railway and freight braking equipment and related components; brake shoes, discs, and pads; HVAC equipment; access and platform screen doors; pantographs; power converters and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses.

The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

Industry
Railroads
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

31,000

Industry

Railroads

Exchange

NYSE

11/12

Flags passed

WAB fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Balance sheet deteriorating

    Net cash collapsed with receivables or inventory outpacing revenue

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.16
Return on equity
10.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.04
Current ratio
1.10×
Net cash
-$5.89B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.7%

Growth

2/2 pass
Revenue growth
7.5%
Piotroski F-Score
5 / 9
Share dilution
-2.1%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 30th percentile of 21 SIC 37 peers

Gross profitability (GP / assets)

0.16

Primary signal (Novy-Marx).

30th pctl of 21 SIC 37 peers

Return on equity

10.3%

Gross margin

34.1%

75th pctl of 21 SIC 37 peers

Revenue growth (YoY)

7.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

10.1%

Revenue CAGR (5Y)

8.1%

Earnings CAGR (3Y)

22.7%

FCF CAGR (3Y)

19.0%

Cash Flow Health

Is the cash real?

No warning flags · FCF 28% above net income

Free cash flow

$1.50B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

28.1%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.7%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Warning: Balance sheet deteriorating · net debt $5.89B, F-Score 5/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.04

47th pctl of 20 SIC 37 peers (best = lowest)

Current ratio

1.10×

0th pctl of 21 SIC 37 peers

Quick ratio

0.42×

Net cash

-$5.89B

Cash & equivalents minus total debt.

Piotroski F-Score

5 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
14.8%5/5 Strong
FCF coverage
8.66×5/5 Strong
Dividend growth streak
4 yr2/5 Fair
Balance-sheet health
D/E 1.04 · IC N/A1/5 Weak

Capital allocation quality

Composite score

2.3 / 5

Fair
Share count trend(net buybacks)
-2.1%4/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency
4 yr2/5 Fair
Net debt trajectory
-6.7%1/5 Weak

Lifecycle Phase History

20202025
Value
Capital Return

Price History

WAB+218.9% · +26.0% CAGRSPY+82.9% · +12.8% CAGR