WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - Nasdaq - US9507551086 - Common Stock - Currency: USD
WERN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Ground Transportation industry. While WERN seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, WERN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WERN was profitable.
WERN had a positive operating cash flow in the past year.
Each year in the past 5 years WERN has been profitable.
Each year in the past 5 years WERN had a positive operating cash flow.
1.2 Ratios
WERN has a worse Return On Assets (0.60%) than 60.00% of its industry peers.
WERN has a worse Return On Equity (1.24%) than 60.00% of its industry peers.
With a Return On Invested Capital value of 1.30%, WERN is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 | 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 60.00% of its industry peers.
WERN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.50%, WERN is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WERN has declined.
With an excellent Gross Margin value of 83.01%, WERN belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WERN is destroying value.
The number of shares outstanding for WERN has been reduced compared to 1 year ago.
Compared to 5 years ago, WERN has less shares outstanding
WERN has a worse debt/assets ratio than last year.
2.2 Solvency
WERN has an Altman-Z score of 2.66. 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.
WERN's Altman-Z score of 2.66 is fine compared to the rest of the industry. WERN outperforms 65.00% of its industry peers.
WERN has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
WERN has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: WERN outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.14
WACC9.41%
2.3 Liquidity
A Current Ratio of 1.66 indicates that WERN should not have too much problems paying 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.
WERN's Quick ratio of 1.62 is amongst the best of the industry. WERN outperforms 85.00% of its industry peers.
| 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 -80.95% in the last year.
WERN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.73% yearly.
The Revenue has decreased by -7.66% in the past year.
The Revenue has been growing slightly by 4.23% on average over the past years.
EPS 1Y (TTM)-80.95%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-185.71%
Revenue 1Y (TTM)-7.66%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-7.41%
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 63.49% on average per year.
WERN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.70% yearly.
EPS Next Y-36.01%
EPS Next 2Y58.71%
EPS Next 3Y63.49%
EPS Next 5YN/A
Revenue Next Year-1.71%
Revenue Next 2Y2.22%
Revenue Next 3Y3.7%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 92.36, which means the current valuation is very expensive for WERN.
Compared to the rest of the industry, the Price/Earnings ratio of WERN indicates a slightly more expensive valuation: WERN is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WERN to the average of the S&P500 Index (25.91), we can say WERN is valued expensively.
A Price/Forward Earnings ratio of 19.01 indicates a rather expensive valuation of WERN.
62.50% of the companies in the same industry are more expensive than WERN, based on the Price/Forward Earnings ratio.
WERN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.36 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
80.00% 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 | 6.67 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WERN's earnings are expected to grow with 63.49% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y58.71%
EPS Next 3Y63.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, WERN has a reasonable but not impressive dividend return.
The stock price of WERN dropped by -22.37% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.52, WERN pays a better dividend. On top of this WERN pays more dividend than 85.00% of the companies listed in the same industry.
WERN's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-32.85%
Div Incr Years3
Div Non Decr Years3
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 2Y58.71%
EPS Next 3Y63.49%
NASDAQ:WERN (5/23/2025, 9:38:03 AM)
25.86
-0.3 (-1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners100.33%
Inst Owner Change-1.28%
Ins Owners1.26%
Ins Owner Change0.74%
Market Cap1.60B
Analysts52
Price Target28.01 (8.31%)
Short Float %6.54%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.56
Dividend Growth(5Y)-32.85%
DP195.49%
Div Incr Years3
Div Non Decr Years3
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)-23.29%
PT rev (3m)-27.35%
EPS NQ rev (1m)-83.18%
EPS NQ rev (3m)-84.6%
EPS NY rev (1m)-67.05%
EPS NY rev (3m)-71.3%
Revenue NQ rev (1m)-3.7%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)-3.15%
Revenue NY rev (3m)-5.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.36 | ||
| Fwd PE | 19.01 | ||
| P/S | 0.54 | ||
| P/FCF | N/A | ||
| P/OCF | 5.92 | ||
| P/B | 1.11 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)0.28
EY1.08%
EPS(NY)1.36
Fwd EY5.26%
FCF(TTM)-1.75
FCFYN/A
OCF(TTM)4.37
OCFY16.89%
SpS48.02
BVpS23.19
TBVpS19.92
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 | 2.66 |
F-Score5
WACC9.41%
ROIC/WACC0.14
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)-80.95%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-185.71%
EPS Next Y-36.01%
EPS Next 2Y58.71%
EPS Next 3Y63.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.66%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-7.41%
Revenue Next Year-1.71%
Revenue Next 2Y2.22%
Revenue Next 3Y3.7%
Revenue Next 5YN/A
EBIT growth 1Y-67.73%
EBIT growth 3Y-40.29%
EBIT growth 5Y-21.75%
EBIT Next Year369.03%
EBIT Next 3Y87.42%
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%