Westinghouse Air slips -0.96 percent albeit market build-up
 | By Vlad Skutelnik | Macroaxis Story |
This article is aimed at all current or potential Westinghouse Air investors. I will look into why albeit cyclical Westinghouse Air disturbance, the long term basic indicators of the company are still strong. The company current daily volatility is 2.09 percent, with beta of -0.09 and alpha of -0.23 over S&P 500. Westinghouse Air Brake maintains prevalent Real Value of $81.668 per share. The last-minute price of the organization is $67.37. At this time the organization appears to be undervalued. Macroaxis calculates value of Westinghouse Air Brake from examining the organization fundamentals such as Return On Asset of 3.06%, Profit Margin of 4.12% and Current Valuation of 16.02B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage to purchase undervalued securities and to sell overvalued securities since at some point equities prices and their ongoing real values will grow together.
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Reviewed by Michael Smolkin
Westinghouse Air Brake has 4.96B in debt with debt to equity (D/E) ratio of 50.7 . This implies that the stock may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. Westinghouse Air one year expected dividend income is about $0.24 per share. The company has Net Profit Margin of 4.12 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 15.76 % which entails that for every 100 dollars of revenue it generated 0.16 of operating income. Westinghouse Air financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Westinghouse Air, including all of Westinghouse Air's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Westinghouse Air assets, the company is considered highly leveraged. Understanding the composition and structure of overall Westinghouse Air debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Westinghouse Total Debt
Westinghouse Air Brake liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Westinghouse Air Brake has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Westinghouse Air balance sheet include debt obligations and money owed to different Westinghouse Air vendors, workers, and loan providers. Below is the chart of Westinghouse main long-term debt accounts currently reported on its balance sheet. You can use Westinghouse Air Brake financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Westinghouse Air's Liquidity
Westinghouse Air financial leverage refers to using borrowed capital as a funding source to finance Westinghouse Air Brake ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Westinghouse Air financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Westinghouse Air's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Westinghouse Air's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Westinghouse Air's total debt and its cash.
Breaking down Westinghouse Air Indicators
The recent Westinghouse Air Brake price drops may raise some interest from investors as it closed today at a share price of 66.94 on 1302042.000 in trading volume. The company directors and management were unable to exploit market volatilities in May. However, diversifying your overall positions with Westinghouse Air Brake can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.0921. The current volatility is consistent with the ongoing market swings in May 2019 as well as with Westinghouse Air Brake Technologies Corporation unsystematic, company specific events. Westinghouse Air is selling at 67.37. That is 0.96 percent decrease. Today highest was 68.0. Westinghouse Air Price to Earnings Ratio is increasing over the last 5 years. The current value of Westinghouse Air Price to Earnings Ratio is 34.98. Moreover, Westinghouse Air Cash and Equivalents is somewhat stable at the moment. On the whole, we belive that Westinghouse Air is currently undervalued with below average odds of financial turmoil in the next two years. Our primary buy/sell recommendation on the company is Cautious Hold.
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