WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
USA - NASDAQ:WERN - US9507551086 - Common Stock
26.68 USD
-0.33 (-1.22%)
26.68 USD
0 (0%)
WERN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Ground Transportation industry. WERN has an average financial health and profitability rating. While showing a medium growth rate, WERN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WERN had positive earnings in the past year.
WERN had a positive operating cash flow in the past year.
Each year in the past 5 years WERN has been profitable.
WERN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WERN has a Return On Assets of 1.78%. This is comparable to the rest of the industry: WERN outperforms 50.00% of its industry peers.
The Return On Equity of WERN (3.69%) is comparable to the rest of the industry.
WERN has a Return On Invested Capital (2.71%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for WERN is below the industry average of 7.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 3.69% | ||
| ROIC | 2.71% |
ROA(3y)4.16%
ROA(5y)6.05%
ROE(3y)8.81%
ROE(5y)12.02%
ROIC(3y)5.24%
ROIC(5y)7.08%
1.3 Margins
WERN's Profit Margin of 1.77% is in line compared to the rest of the industry. WERN outperforms 42.86% of its industry peers.
WERN's Profit Margin has declined in the last couple of years.
The Operating Margin of WERN (3.08%) is comparable to the rest of the industry.
WERN's Operating Margin has declined in the last couple of years.
WERN's Gross Margin of 83.35% is amongst the best of the industry. WERN outperforms 92.86% of its industry peers.
In the last couple of years the Gross Margin of WERN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.08% | ||
| PM (TTM) | 1.77% | ||
| GM | 83.35% |
OM growth 3Y-42.3%
OM growth 5Y-24.92%
PM growth 3Y-50.78%
PM growth 5Y-30.11%
GM growth 3Y-0.26%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WERN is destroying value.
The number of shares outstanding for WERN has been reduced compared to 1 year ago.
The number of shares outstanding for WERN has been reduced compared to 5 years ago.
WERN has a worse debt/assets ratio than last year.
2.2 Solvency
WERN has an Altman-Z score of 2.77. This is not the best score and indicates that WERN is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.77, WERN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WERN has a Debt/Equity ratio of 0.51. This is a neutral value indicating WERN is somewhat dependend on debt financing.
WERN has a Debt to Equity ratio (0.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.77 |
ROIC/WACC0.29
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.67 indicates that WERN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.67, WERN belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
WERN has a Quick Ratio of 1.63. This is a normal value and indicates that WERN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WERN (1.63) is better than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The earnings per share for WERN have decreased strongly by -80.36% in the last year.
The earnings per share for WERN have been decreasing by -25.73% on average. This is quite bad
Looking at the last year, WERN shows a decrease in Revenue. The Revenue has decreased by -6.43% in the last year.
The Revenue has been growing slightly by 4.23% on average over the past years.
EPS 1Y (TTM)-80.36%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-35.29%
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-1.01%
3.2 Future
Based on estimates for the next years, WERN will show a very strong growth in Earnings Per Share. The EPS will grow by 58.88% on average per year.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y-29.96%
EPS Next 2Y52.34%
EPS Next 3Y58.88%
EPS Next 5YN/A
Revenue Next Year-0.97%
Revenue Next 2Y2.3%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 121.27 indicates a quite expensive valuation of WERN.
WERN's Price/Earnings ratio is a bit more expensive when compared to the industry. WERN is more expensive than 61.90% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. WERN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 21.29 indicates a rather expensive valuation of WERN.
WERN's Price/Forward Earnings ratio is in line with the industry average.
WERN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 121.27 | ||
| Fwd PE | 21.29 |
4.2 Price Multiples
88.10% of the companies in the same industry are more expensive than WERN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WERN's earnings are expected to grow with 58.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y52.34%
EPS Next 3Y58.88%
5. Dividend
5.1 Amount
WERN has a Yearly Dividend Yield of 1.98%.
WERN's Dividend Yield is rather good when compared to the industry average which is at 1.60. WERN pays more dividend than 88.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, WERN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of WERN decreases each year by -32.85%.
WERN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WERN decreased recently.
Dividend Growth(5Y)-32.85%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
66.07% of the earnings are spent on dividend by WERN. This is not a sustainable payout ratio.
DP66.07%
EPS Next 2Y52.34%
EPS Next 3Y58.88%
26.68
-0.33 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners101.34%
Inst Owner Change3.26%
Ins Owners1.38%
Ins Owner Change0.12%
Market Cap1.60B
Analysts52.38
Price Target29.65 (11.13%)
Short Float %7.46%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Yearly Dividend0.56
Dividend Growth(5Y)-32.85%
DP66.07%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-38.87%
Min EPS beat(2)-200.1%
Max EPS beat(2)122.36%
EPS beat(4)1
Avg EPS beat(4)-42.73%
Min EPS beat(4)-200.1%
Max EPS beat(4)122.36%
EPS beat(8)1
Avg EPS beat(8)-33.24%
EPS beat(12)2
Avg EPS beat(12)-25.06%
EPS beat(16)4
Avg EPS beat(16)-19.5%
Revenue beat(2)1
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-5.42%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-3.11%
Min Revenue beat(4)-5.42%
Max Revenue beat(4)0.61%
Revenue beat(8)1
Avg Revenue beat(8)-2.89%
Revenue beat(12)1
Avg Revenue beat(12)-2.63%
Revenue beat(16)4
Avg Revenue beat(16)-1.59%
PT rev (1m)-0.49%
PT rev (3m)5.86%
EPS NQ rev (1m)-4.06%
EPS NQ rev (3m)5.34%
EPS NY rev (1m)0%
EPS NY rev (3m)9.46%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 121.27 | ||
| Fwd PE | 21.29 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | 7.69 | ||
| P/B | 1.12 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)0.22
EY0.82%
EPS(NY)1.25
Fwd EY4.7%
FCF(TTM)-2
FCFYN/A
OCF(TTM)3.47
OCFY13%
SpS49.57
BVpS23.75
TBVpS20.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 3.69% | ||
| ROCE | 3.5% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.77% | ||
| ROICexgc | 3% | ||
| OM | 3.08% | ||
| PM (TTM) | 1.77% | ||
| GM | 83.35% | ||
| FCFM | N/A |
ROA(3y)4.16%
ROA(5y)6.05%
ROE(3y)8.81%
ROE(5y)12.02%
ROIC(3y)5.24%
ROIC(5y)7.08%
ROICexc(3y)5.41%
ROICexc(5y)7.26%
ROICexgc(3y)5.87%
ROICexgc(5y)7.66%
ROCE(3y)6.76%
ROCE(5y)9.13%
ROICexcg growth 3Y-42.83%
ROICexcg growth 5Y-26.36%
ROICexc growth 3Y-43.24%
ROICexc growth 5Y-27.54%
OM growth 3Y-42.3%
OM growth 5Y-24.92%
PM growth 3Y-50.78%
PM growth 5Y-30.11%
GM growth 3Y-0.26%
GM growth 5Y-0.05%
F-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 115.07% | ||
| Cap/Sales | 11.03% | ||
| Interest Coverage | 2.08 | ||
| Cash Conversion | 55.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.77 |
F-Score5
WACC9.27%
ROIC/WACC0.29
Cap/Depr(3y)174.55%
Cap/Depr(5y)163.82%
Cap/Sales(3y)15.77%
Cap/Sales(5y)15.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-80.36%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-35.29%
EPS Next Y-29.96%
EPS Next 2Y52.34%
EPS Next 3Y58.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-1.01%
Revenue Next Year-0.97%
Revenue Next 2Y2.3%
Revenue Next 3Y3.42%
Revenue Next 5YN/A
EBIT growth 1Y-17.65%
EBIT growth 3Y-40.29%
EBIT growth 5Y-21.75%
EBIT Next Year289.35%
EBIT Next 3Y79.42%
EBIT Next 5YN/A
FCF growth 1Y32.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-55.19%
OCF growth 3Y-0.31%
OCF growth 5Y-5.02%