Price movement of WABCO
WABCO Holdings (WBC) has a market cap of $5.0 billion. WBC fell by 3.6% to close at $87.40 per share as of February 2, 2016. The price movement on a weekly, monthly, and year-to-date (or YTD) basis is 0.36%, -14.5%, and -14.5%, respectively.
Technically, the stock has broken the support and is trading below all moving day averages. Currently, WBC is trading 2.5% below its 20-day moving average, 9.9% below its 50-day moving average, and 23.0% below its 200-day moving average.
The ALPS International Sector Dividend Dogs ETF (IDOG) invests 2.1% of its holdings in WABCO. The ETF tracks an equal-weighted index that selects the five companies with the highest dividend yield in each of the ten GICS sectors from international developed markets. The YTD price movement of IDOG was -4.3% as of February 1, 2016.
The market cap of WABCO’s competitors are as follows:
WABCO acquired MICO
WABCO acquired MICO Incorporated to expand its products offerings from pneumatic and hydraulic braking and control systems for off-highway vehicles. This acquisition will provide synergies between WABCO and MICO with an increase in market share worldwide.
Performance of WABCO in fiscal 3Q15
WABCO reported 3Q15 sales of $643.6 million, a fall of 9.0% compared to sales of $707.3 million in fiscal 3Q14. The company’s cost of sales as a percentage of sales rose by 8.8% and its operating income fell by 65.9% in fiscal 3Q15 compared to fiscal 3Q14.
Its net income and EPS (earnings per share) fell to $38.8 million and $0.67, respectively, in fiscal 3Q15, compared to $82.0 million and $1.37, respectively, in fiscal 3Q14.
Meanwhile, its cash and cash equivalents and inventories rose by 32.2% and 15.6%, respectively, in fiscal 3Q15 compared to fiscal 4Q14. Its debt-to-equity ratio rose to 2.3x in fiscal 3Q15 compared to 1.8x in fiscal 4Q14.
The PE (price-to-earnings) and PBV (price-to-book value) ratios of WABCO were 21.2x and 6.5x, respectively, as of February 2, 2016.
WABCO Holdings (WBC) made the following projection for fiscal 2016:
- Sales growth in the range of 5.5%–6.5%.
- Operating margin in the range of 13.4%–13.7%.
- EPS on a performance basis in the range of $5.50–$5.60.