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Balancing Dividends and Fundamentals: The Case of NASDAQ:FWRD.

By Mill Chart

Last update: Feb 28, 2024

FORWARD AIR CORP (NASDAQ:FWRD) has caught the attention of dividend investors as a stock worth considering. NASDAQ:FWRD excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Evaluating Dividend: NASDAQ:FWRD

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NASDAQ:FWRD earns a 7 out of 10:

  • Compared to an average industry Dividend Yield of 2.55, FWRD pays a better dividend. On top of this FWRD pays more dividend than 87.50% of the companies listed in the same industry.
  • The dividend of FWRD is nicely growing with an annual growth rate of 9.77%!
  • FWRD has been paying a dividend for at least 10 years, so it has a reliable track record.
  • FWRD has not decreased their dividend for at least 10 years, which is a reliable track record.
  • 23.35% of the earnings are spent on dividend by FWRD. This is a low number and sustainable payout ratio.

Understanding NASDAQ:FWRD's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:FWRD, the assigned 8 for health provides valuable insights:

  • FWRD has an Altman-Z score of 3.80. This indicates that FWRD is financially healthy and has little risk of bankruptcy at the moment.
  • FWRD's Altman-Z score of 3.80 is fine compared to the rest of the industry. FWRD outperforms 68.75% of its industry peers.
  • The Debt to FCF ratio of FWRD is 0.86, which is an excellent value as it means it would take FWRD, only 0.86 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.86, FWRD belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • A Debt/Equity ratio of 0.21 indicates that FWRD is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.21, FWRD is doing good in the industry, outperforming 68.75% of the companies in the same industry.
  • The current and quick ratio evaluation for FWRD is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:FWRD has achieved a 8:

  • The Return On Assets of FWRD (9.06%) is better than 81.25% of its industry peers.
  • FWRD has a better Return On Equity (16.21%) than 81.25% of its industry peers.
  • FWRD's Return On Invested Capital of 11.74% is amongst the best of the industry. FWRD outperforms 81.25% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for FWRD is above the industry average of 8.55%.
  • FWRD has a better Profit Margin (6.26%) than 81.25% of its industry peers.
  • In the last couple of years the Profit Margin of FWRD has grown nicely.
  • FWRD has a Operating Margin of 9.14%. This is in the better half of the industry: FWRD outperforms 75.00% of its industry peers.
  • FWRD's Operating Margin has improved in the last couple of years.
  • FWRD has a Gross Margin of 48.01%. This is in the better half of the industry: FWRD outperforms 75.00% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of FWRD contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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FORWARD AIR CORP

NASDAQ:FWRD (5/24/2024, 7:00:00 PM)

After market: 12.94 +0.61 (+4.95%)

12.33

-0.17 (-1.36%)

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