Westinghouse Air Brake Technologies Corporation (WAB)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses at sensible prices, and WAB is a durable rail-equipment franchise: it supplies locomotives, braking, propulsion and services to freight and transit customers worldwide. The recent record is solid. In fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $3.1B, net income $409.0M and diluted EPS $2.42, versus revenue $2.9B, net income $310.0M and diluted EPS $1.81 in fiscal Q3 2025. Full-year fiscal 2025 revenue was $11.2B, net income $1.2B and diluted EPS $6.83, up from fiscal 2024's $10.4B, $1.1B and $6.04. That is steady growth, consistent with FairStock's computed STALWART label: 23.1% annual profit growth and 8.1% revenue growth over five years. The balance sheet is reasonable, with debt-to-equity 0.62 and FairStock's Piotroski F-Score 7/9 and Altman Z-Score 2.88; trailing free cash flow is $1.8B. But I see limits. FairStock's ROE is 11.55% and ROCE is only 6.17%, not the high-return profile I prefer; the competitive moat is not obvious in those returns. At the 2026-10-26 close of $277.67, FairStock's P/E is 37.37, P/B 4.19, EV/EBITDA 19.43, PEG 2.09 and FCF yield 3.8%. Its Graham Number is $105.85, implying a -157.30% margin of safety. Quality is real, but the price already assumes a lot; I would want a wider gap between value and price before calling it a bargain.

In plain English: Westinghouse Air Brake makes locomotives, braking systems and other equipment and services for freight and passenger rail. The business looks strong: sales and profit are growing, and in fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $3.1 billion and net income was $409.0 million, up from a year earlier. At $277.67 on 2026-10-26, the stock looks expensive compared with the company's profits and assets, and there is no bargain cushion in the numbers shown.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer