FORWARD AIR CORP (FWRD)
US3498531017 - Common Stock
Overall FWRD gets a fundamental rating of 6 out of 10. We evaluated FWRD against 17 industry peers in the Air Freight & Logistics industry. While FWRD has a great profitability rating, there are some minor concerns on its financial health. FWRD has a decent growth rate and is not valued too expensively. Finally FWRD also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FWRD had positive earnings in the past year.
In the past year FWRD had a positive cash flow from operations.
Each year in the past 5 years FWRD has been profitable.
FWRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.78%, FWRD belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
FWRD's Return On Equity of 30.32% is amongst the best of the industry. FWRD outperforms 88.24% of its industry peers.
FWRD has a better Return On Invested Capital (6.60%) than 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FWRD is above the industry average of 7.79%.
The last Return On Invested Capital (6.60%) for FWRD is well below the 3 year average (11.88%), which needs to be investigated, but indicates that FWRD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 30.32% | ||
| ROIC | 6.6% |
ROA(3y)10.3%
ROA(5y)8.36%
ROE(3y)22.22%
ROE(5y)17.17%
ROIC(3y)11.88%
ROIC(5y)10.36%
1.3 Margins
With an excellent Profit Margin value of 8.87%, FWRD belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
FWRD's Profit Margin has improved in the last couple of years.
FWRD has a better Operating Margin (9.26%) than 82.35% of its industry peers.
In the last couple of years the Operating Margin of FWRD has remained more or less at the same level.
With a decent Gross Margin value of 48.48%, FWRD is doing good in the industry, outperforming 76.47% of the companies in the same industry.
FWRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.26% | ||
| PM (TTM) | 8.87% | ||
| GM | 48.49% |
OM growth 3Y22.23%
OM growth 5Y0.63%
PM growth 3Y87.75%
PM growth 5Y8.66%
GM growth 3Y5.21%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FWRD is creating value.
FWRD has less shares outstanding than it did 1 year ago.
FWRD has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FWRD is higher compared to a year ago.
2.2 Solvency
FWRD has an Altman-Z score of 1.58. This is a bad value and indicates that FWRD is not financially healthy and even has some risk of bankruptcy.
FWRD has a worse Altman-Z score (1.58) than 70.59% of its industry peers.
The Debt to FCF ratio of FWRD is 12.15, which is on the high side as it means it would take FWRD, 12.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.15, FWRD is in line with its industry, outperforming 47.06% of the companies in the same industry.
A Debt/Equity ratio of 2.38 is on the high side and indicates that FWRD has dependencies on debt financing.
FWRD's Debt to Equity ratio of 2.38 is on the low side compared to the rest of the industry. FWRD is outperformed by 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 12.15 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.29
WACC5.12%
2.3 Liquidity
A Current Ratio of 1.46 indicates that FWRD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, FWRD is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that FWRD should not have too much problems paying its short term obligations.
FWRD's Quick ratio of 1.46 is fine compared to the rest of the industry. FWRD outperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for FWRD have decreased strongly by -43.25% in the last year.
FWRD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.18% yearly.
Looking at the last year, FWRD shows a very strong growth in Revenue. The Revenue has grown by 32.43%.
FWRD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.80% yearly.
EPS 1Y (TTM)-43.25%
EPS 3Y69.35%
EPS 5Y5.18%
EPS growth Q2Q-50.91%
Revenue 1Y (TTM)32.43%
Revenue growth 3Y2.59%
Revenue growth 5Y3.8%
Revenue growth Q2Q184.86%
3.2 Future
The Earnings Per Share is expected to decrease by -36.44% on average over the next years. This is quite bad
Based on estimates for the next years, FWRD will show a very strong growth in Revenue. The Revenue will grow by 35.67% on average per year.
EPS Next Y-87.9%
EPS Next 2Y-36.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year65.99%
Revenue Next 2Y35.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.38, the valuation of FWRD can be described as very cheap.
Based on the Price/Earnings ratio, FWRD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.02, FWRD is valued rather cheaply.
With a Price/Forward Earnings ratio of 44.42, FWRD can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as FWRD.
The average S&P500 Price/Forward Earnings ratio is at 21.32. FWRD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.38 | ||
| Fwd PE | 44.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FWRD is valued a bit cheaper than 76.47% of the companies in the same industry.
FWRD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FWRD is cheaper than 94.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.84 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
FWRD has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FWRD's earnings are expected to decrease with -36.44% in the coming years.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-36.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, FWRD is a good candidate for dividend investing.
In the last 3 months the price of FWRD has falen by -48.45%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.76, FWRD pays a better dividend. On top of this FWRD pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FWRD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of FWRD is nicely growing with an annual growth rate of 8.59%!
FWRD has paid a dividend for at least 10 years, which is a reliable track record.
FWRD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.59%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
FWRD pays out 10.79% of its income as dividend. This is a sustainable payout ratio.
DP10.79%
EPS Next 2Y-36.44%
EPS Next 3YN/A
FORWARD AIR CORP
NASDAQ:FWRD (4/30/2024, 8:36:08 AM)
21.93
-0.59 (-2.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap578.29M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.38 | ||
| Fwd PE | 44.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.78% | ||
| ROE | 30.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.26% | ||
| PM (TTM) | 8.87% | ||
| GM | 48.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-43.25%
EPS 3Y69.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-87.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)32.43%
Revenue growth 3Y2.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y