Westinghouse Air Brake Technologies Corporation (WAB) Stock Analysis & Winston Score

Westinghouse Air Brake Technologies, known as Wabtec, makes the equipment that keeps trains running safely and efficiently. Its products include brakes, locomotives, signaling systems, and software used to control and monitor rail networks. The company sells to freight railroads, passenger transit agencies, and rail operators around the world, making it one of the largest suppliers of rail equipment and technology globally.

Wabtec earns money by selling hardware like locomotives outright, and also through long-term service contracts and software licenses that provide recurring revenue over time. It operates across North America, Europe, and other international markets, with the freight rail business in the United States being its largest segment. The company's deep integration into customers' existing rail infrastructure makes it difficult to replace, which is a meaningful competitive advantage. The key growth driver is the global push to modernize aging rail networks, though a slowdown in North American freight volumes remains a near-term risk to watch.

Winston Score History

Politician Trades

17 trades / 12mo

5 Congressional buys and 12 sells on WAB in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+12.8% YoY

YoY Growth Rate

Steady EPS growth

Insider Activity

1.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$531M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Westinghouse Air Brake Technologies Corporation is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

36.0%

Modest — 36.0% gross margin

Operating Margin

17.5%

Healthy — 17.5% operating margin

ROCE

2.9%

Weak — 2.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+9.6%

Steady sales growth (9.6% YoY)

EPS YoY

+10.8%

Earnings growing (10.8% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

146%

Turns 146% of profit into real cash

FCF Margin

12.8%

Converts sales into free cash efficiently (12.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.59

Conservative — low debt load (0.59)

Interest Cover

7.41x

Adequate interest coverage (7.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

36.8x

no trend

Pricey — P/E 36.8

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+14.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (36.8 → 22.5)

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Dividends

Dividend Yield

0.41%

no trend

Small dividend — 0.41% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+24.4%

no trend

Dividend growing fast (24.4% YoY)

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