WAB

Westinghouse Air Brake Technologies Corp

Industrial/Transportation


Presented:07/01/2024
Price:$155.55
Cap:$27.44B
Current Price:$187.25
Cap:$32.80B

Presented

Date07/01/2024
Price$155.55
Market Cap$27.44B
Ent Value$29.51B
P/E Ratio30.25x
Book Value$59.17
Div Yield0.48%
Shares O/S176.39M
Ave Daily Vol1,131,139
Short Int1.22%

Current

Price$187.25
Market Cap$32.80B
Westinghouse Air Brake Technologies Corp. engages in the provision of equipment, systems, and value-added services for the rail industry. It operates through the Freight and Transit segments. The Freight segment builds new locomotives, manufactures and services components for new and existing freight cars and locomotives, rebuilds freight locomotives, supplies railway electronics, positive train control equipment, and signal design and engineering services, and provides related heat exchange and cooling systems. The Transit segment manufactures and services components for new and existing passenger transit vehicles, including regional trains, high speed trains, subway cars, light-rail vehicles, and buses, builds new commuter locomotives, refurbishes subway cars, and provides heating, ventilation, air conditioning equipment, and doors for buses and subway cars. The company was founded in 1869 and is headquartered in Pittsburgh, PA.

Publicly traded companies mentioned herein: Caterpillar Inc (CAT), Westinghouse Air Brake Technologies Corp (WAB)

Highlights

The presenter is long shares of Westinghouse Air Brake Technologies Corp (WAB), commonly referred to as Wabtec. The company is poised to benefit from an ongoing locomotive upcycle as the industry recovers from a decade-long trough in capex spending, with potential for high-teen% EPS growth and multiple expansion. Wabtec's strong pricing power, high barriers to entry, and potential regulatory tailwinds in California could drive significant upside, with the presenter projecting FY26 EPS of $10+ and applying a 25x-30x multiple based on the company's defensible market position and growth prospects.

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Idea Discussion

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