WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - US9507551086 - Common Stock
28.85 USD
+0.12 (+0.42%)
28.85 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WERN. WERN was compared to 41 industry peers in the Ground Transportation industry. WERN has only an average score on both its financial health and profitability. WERN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
WERN had positive earnings in the past year.
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
WERN's Return On Assets of 1.78% is in line compared to the rest of the industry. WERN outperforms 48.78% of its industry peers.
Looking at the Return On Equity, with a value of 3.69%, WERN is in line with its industry, outperforming 46.34% of the companies in the same industry.
WERN has a Return On Invested Capital (2.71%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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 has a Profit Margin of 1.77%. This is comparable to the rest of the industry: WERN outperforms 41.46% of its industry peers.
In the last couple of years the Profit Margin of WERN has declined.
WERN has a Operating Margin of 3.08%. This is comparable to the rest of the industry: WERN outperforms 43.90% of its industry peers.
In the last couple of years the Operating Margin of WERN has declined.
With an excellent Gross Margin value of 83.35%, WERN belongs to the best of the industry, outperforming 92.68% 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 | 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.
Compared to 1 year ago, WERN has less shares outstanding
Compared to 5 years ago, WERN has less shares outstanding
The debt/assets ratio for WERN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 indicates that WERN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.82, WERN is in the better half of the industry, outperforming 65.85% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.82 |
ROIC/WACC0.29
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.67 indicates that WERN should not have too much problems paying its short term obligations.
WERN's Current ratio of 1.67 is amongst the best of the industry. WERN outperforms 80.49% of its industry peers.
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 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
WERN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -80.36%.
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.
WERN shows a decrease in Revenue. In the last year, the revenue decreased by -6.43%.
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.
WERN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.33% yearly.
EPS Next Y-29.96%
EPS Next 2Y52.34%
EPS Next 3Y58.88%
EPS Next 5YN/A
Revenue Next Year-1.13%
Revenue Next 2Y2.22%
Revenue Next 3Y3.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 131.14, WERN can be considered very expensive at the moment.
WERN's Price/Earnings ratio is a bit more expensive when compared to the industry. WERN is more expensive than 65.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of WERN to the average of the S&P500 Index (27.13), we can say WERN is valued expensively.
A Price/Forward Earnings ratio of 23.02 indicates a rather expensive valuation of WERN.
WERN's Price/Forward Earnings ratio is in line with the industry average.
WERN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.14 | ||
| Fwd PE | 23.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WERN indicates a rather cheap valuation: WERN is cheaper than 87.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
WERN's earnings are expected to grow with 58.88% in the coming years. This may justify a more expensive valuation.
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 2.03%.
WERN's Dividend Yield is rather good when compared to the industry average which is at 1.57. WERN pays more dividend than 92.68% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, WERN has a dividend comparable with the average S&P500 company.
| 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.
The dividend of WERN decreased recently.
Dividend Growth(5Y)-32.85%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
WERN pays out 66.07% of its income as dividend. This is not a sustainable payout ratio.
DP66.07%
EPS Next 2Y52.34%
EPS Next 3Y58.88%
28.85
+0.12 (+0.42%)
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 Cap1.73B
Analysts52.38
Price Target29.73 (3.05%)
Short Float %7.05%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)1.24%
PT rev (3m)6.12%
EPS NQ rev (1m)3.27%
EPS NQ rev (3m)-51.07%
EPS NY rev (1m)16.43%
EPS NY rev (3m)9.46%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.14 | ||
| Fwd PE | 23.02 | ||
| P/S | 0.58 | ||
| P/FCF | N/A | ||
| P/OCF | 8.32 | ||
| P/B | 1.21 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)0.22
EY0.76%
EPS(NY)1.25
Fwd EY4.34%
FCF(TTM)-2
FCFYN/A
OCF(TTM)3.47
OCFY12.02%
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 | 2.82 |
F-Score5
WACC9.39%
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-1.13%
Revenue Next 2Y2.22%
Revenue Next 3Y3.33%
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%