Wabtec: No Upside And Low Dividend

Prasanna Rajagopal
1.13K Followers

Summary

  • A recession can impact the company's revenue and margins.
  • The dividend yield is too low.
  • The stock offers low returns on capital, given the current high cost of capital.

Train in motion

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Westinghouse Air Brake Technologies (NYSE:WAB) has performed well over the past few years. The company has seen its margins eroded in 2022. The company's multi-year order backlog may not protect it against a recession. The company

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1.13K Followers
Prasanna Rajagopal comes with in-depth knowledge of the technology industry, having spent over 15 years in various sectors of the software industry. Prasanna loves to learn and write about business and investment opportunities in technology, media, retail, and industrial companies. Prasanna has a M.B.A. from UCLA Anderson School of Management, a M.S. in Industrial Engineering from Wichita State University and a Bachelor's degree in Mechanical Engineering from University of Madras.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VIS,VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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