F

Westinghouse Air Brake Technolo — Earnings Quality Grade F

WAB · Industrials

Major red flags

Revenue
$11.2B
2025
Net Income
$1.2B
2025
Gross Margin
34.1%
Free Cash Flow
$1.5B
01

Screening Summary

13
Passed
2
Watch
2
Failed
-2.47
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 46 days, change +6 days YoY

!
A2AR vs Revenue Growth

AR growth 22.4% exceeds revenue growth 7.5%

A3Revenue vs CFFO

Revenue 7.5%, CFFO -4.1%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 18.6% vs COGS 4.8%. Normal

!
B2CapEx vs Revenue

CapEx growth 25.6% is >2x revenue growth 7.5%

B3SG&A Ratio

SG&A/Gross Profit = 39.1%. Normal

B4Gross Margin

Gross margin 34.1%, change +1.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.50. Profits backed by cash

C2Free Cash Flow

FCF $1.5B, FCF/NI = 1.28

C3Accruals Ratio

Accruals ratio = -2.7%. Low accruals

C4Cash vs Debt

Cash $0.8B covers only 14% of debt $5.5B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $14.1B = 126% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.4x. Healthy

D3Soft Asset Growth

Other assets 5.5% vs revenue 7.5%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 21% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.47 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.47
-4.0 Clean-2.22 Grey-1.78 Danger0
1.138
DSRI
AR growing faster than revenue?
0.951
GMI
Gross margin declining?
1.016
AQI
Asset quality deteriorating?
1.075
SGI
Revenue growth rate
1.092
DEPI
Depreciation slowing?
1.111
SGAI
SG&A ratio changing?
-0.0267
TATA
Accruals level
1.1
LVGI
Leverage increasing?
05

Altman Z-Score

2.36
Grey Zone
0 Distress1.102.605.0+ Safe
0.0246
Liquidity
0.1757
Cumulative profit
0.0823
Operating efficiency
1.0242
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25

·Latest Quarterly Check

About this →

WAB is sitting near the watch threshold across the last 5–6 quarters.

  • Q5 · Inv > RevInv YoY +19.8% vs Rev YoY +13.0%

Updated 2026-05-19