WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - Nasdaq - US9507551086 - Common Stock - Currency: USD
Taking everything into account, WERN scores 3 out of 10 in our fundamental rating. WERN was compared to 40 industry peers in the Ground Transportation industry. While WERN seems to be doing ok healthwise, there are quite some concerns on its profitability. WERN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WERN was profitable.
In the past year WERN had a positive cash flow from operations.
WERN had positive earnings in each of the past 5 years.
In the past 5 years WERN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.60%, WERN is doing worse than 65.00% of the companies in the same industry.
WERN has a Return On Equity of 1.24%. This is in the lower half of the industry: WERN underperforms 65.00% of its industry peers.
The Return On Invested Capital of WERN (1.30%) is worse than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WERN is below the industry average of 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 1.24% | ||
| ROIC | 1.3% |
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 has a Profit Margin of 0.60%. This is in the lower half of the industry: WERN underperforms 65.00% of its industry peers.
In the last couple of years the Profit Margin of WERN has declined.
With a Operating Margin value of 1.50%, WERN is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
WERN's Operating Margin has declined in the last couple of years.
WERN has a better Gross Margin (83.01%) than 92.50% of its industry peers.
WERN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.5% | ||
| PM (TTM) | 0.6% | ||
| GM | 83.01% |
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
WERN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WERN has less shares outstanding
Compared to 5 years ago, WERN has less shares outstanding
Compared to 1 year ago, WERN has a worse debt to assets ratio.
2.2 Solvency
WERN has an Altman-Z score of 2.65. 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 2.65, WERN is doing good in the industry, outperforming 65.00% of the companies in the same industry.
WERN has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
WERN's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. WERN outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.65 |
ROIC/WACC0.15
WACC8.84%
2.3 Liquidity
WERN has a Current Ratio of 1.66. This is a normal value and indicates that WERN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WERN (1.66) is better than 85.00% of its industry peers.
WERN has a Quick Ratio of 1.62. This is a normal value and indicates that WERN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.62, WERN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for WERN have decreased strongly by -80.36% in the last year.
Measured over the past years, WERN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.73% on average per year.
Looking at the last year, WERN shows a decrease in Revenue. The Revenue has decreased by -6.43% in the last year.
Measured over the past years, WERN shows a small growth in Revenue. The Revenue has been growing by 4.23% on average per year.
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
WERN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 63.00% yearly.
The Revenue is expected to grow by 3.04% on average over the next years.
EPS Next Y-39.84%
EPS Next 2Y55.9%
EPS Next 3Y63%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y1.79%
Revenue Next 3Y3.04%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 120.91, which means the current valuation is very expensive for WERN.
Based on the Price/Earnings ratio, WERN is valued a bit more expensive than the industry average as 67.50% of the companies are valued more cheaply.
WERN is valuated expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.27, the valuation of WERN can be described as rather expensive.
WERN's Price/Forward Earnings ratio is in line with the industry average.
WERN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.91 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WERN is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
WERN's earnings are expected to grow with 63.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.9%
EPS Next 3Y63%
5. Dividend
5.1 Amount
WERN has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.60, WERN pays a better dividend. On top of this WERN pays more dividend than 90.00% of the companies listed in the same industry.
WERN's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
The dividend of WERN decreases each year by -32.85%.
WERN has paid a dividend for at least 10 years, which is a reliable track record.
WERN has decreased its dividend recently.
Dividend Growth(5Y)-32.85%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
195.49% of the earnings are spent on dividend by WERN. This is not a sustainable payout ratio.
DP195.49%
EPS Next 2Y55.9%
EPS Next 3Y63%
26.6
-0.09 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners101.34%
Inst Owner Change-1.78%
Ins Owners1.38%
Ins Owner Change0.6%
Market Cap1.59B
Analysts52.38
Price Target29.8 (12.03%)
Short Float %8.03%
Short Ratio5.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.56
Dividend Growth(5Y)-32.85%
DP195.49%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-131.88%
Min EPS beat(2)-200.1%
Max EPS beat(2)-63.67%
EPS beat(4)0
Avg EPS beat(4)-77.78%
Min EPS beat(4)-200.1%
Max EPS beat(4)-17.84%
EPS beat(8)0
Avg EPS beat(8)-50.25%
EPS beat(12)1
Avg EPS beat(12)-36.69%
EPS beat(16)3
Avg EPS beat(16)-27.34%
Revenue beat(2)0
Avg Revenue beat(2)-4.28%
Min Revenue beat(2)-5.42%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-4.07%
Min Revenue beat(4)-5.42%
Max Revenue beat(4)-3.15%
Revenue beat(8)0
Avg Revenue beat(8)-3.31%
Revenue beat(12)1
Avg Revenue beat(12)-2.36%
Revenue beat(16)3
Avg Revenue beat(16)-1.73%
PT rev (1m)2.09%
PT rev (3m)6.38%
EPS NQ rev (1m)20.05%
EPS NQ rev (3m)-63.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-69.03%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.91 | ||
| Fwd PE | 20.27 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | 5.88 | ||
| P/B | 1.11 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)0.22
EY0.83%
EPS(NY)1.31
Fwd EY4.93%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)4.52
OCFY17%
SpS49.7
BVpS24.01
TBVpS20.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 1.24% | ||
| ROCE | 1.68% | ||
| ROIC | 1.3% | ||
| ROICexc | 1.33% | ||
| ROICexgc | 1.44% | ||
| OM | 1.5% | ||
| PM (TTM) | 0.6% | ||
| GM | 83.01% | ||
| 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
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 132.46% | ||
| Cap/Sales | 12.75% | ||
| Interest Coverage | 0.99 | ||
| Cash Conversion | 81.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.65 |
F-Score5
WACC8.84%
ROIC/WACC0.15
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-39.84%
EPS Next 2Y55.9%
EPS Next 3Y63%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.43%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-1.01%
Revenue Next Year-2%
Revenue Next 2Y1.79%
Revenue Next 3Y3.04%
Revenue Next 5YN/A
EBIT growth 1Y-67.73%
EBIT growth 3Y-40.29%
EBIT growth 5Y-21.75%
EBIT Next Year289.35%
EBIT Next 3Y79.42%
EBIT Next 5YN/A
FCF growth 1Y19.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-41.26%
OCF growth 3Y-0.31%
OCF growth 5Y-5.02%