Westinghouse Air Brake Technolo — Earnings Quality Grade F
WAB · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 46 days, change +6 days YoY
AR growth 22.4% exceeds revenue growth 7.5%
Revenue 7.5%, CFFO -4.1%. Cash follows revenue
Expense Quality
Inventory 18.6% vs COGS 4.8%. Normal
CapEx growth 25.6% is >2x revenue growth 7.5%
SG&A/Gross Profit = 39.1%. Normal
Gross margin 34.1%, change +1.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.50. Profits backed by cash
FCF $1.5B, FCF/NI = 1.28
Accruals ratio = -2.7%. Low accruals
Cash $0.8B covers only 14% of debt $5.5B
Balance Sheet Health
Goodwill+Intangibles $14.1B = 126% of equity. Over 50%
Debt/EBITDA = 2.4x. Healthy
Other assets 5.5% vs revenue 7.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 21% YoY. Normal
Manipulation Score
M-Score = -2.47 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10