WERNER ENTERPRISES INC (WERN)
US9507551086 - Common Stock
WERN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Ground Transportation industry. Both the profitability and the financial health of WERN get a neutral evaluation. Nothing too spectacular is happening here. 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.
WERN had positive earnings in each of the past 5 years.
Each year in the past 5 years WERN had a positive operating cash flow.
1.2 Ratios
WERN has a Return On Assets (3.56%) which is comparable to the rest of the industry.
WERN has a Return On Equity (7.35%) which is comparable to the rest of the industry.
WERN's Return On Invested Capital of 4.73% is in line compared to the rest of the industry. WERN outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WERN is in line with the industry average of 7.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 7.35% | ||
| ROIC | 4.73% |
ROA(3y)7.1%
ROA(5y)7.39%
ROE(3y)14.53%
ROE(5y)14.55%
ROIC(3y)7.87%
ROIC(5y)8.41%
1.3 Margins
The Profit Margin of WERN (3.42%) is comparable to the rest of the industry.
WERN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.37%, WERN is in line with its industry, outperforming 52.78% of the companies in the same industry.
In the last couple of years the Operating Margin of WERN has declined.
WERN has a Gross Margin of 81.68%. This is amongst the best in the industry. WERN outperforms 88.89% 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 | 5.37% | ||
| PM (TTM) | 3.42% | ||
| GM | 81.68% |
OM growth 3Y-17.55%
OM growth 5Y-10.04%
PM growth 3Y-21.7%
PM growth 5Y-12.93%
GM growth 3Y-1.69%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WERN is creating some value.
WERN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WERN has been reduced compared to 5 years ago.
Compared to 1 year ago, WERN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.00 indicates that WERN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.00, WERN is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that WERN is not too dependend on debt financing.
The Debt to Equity ratio of WERN (0.42) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3 |
ROIC/WACC0.6
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.92 indicates that WERN should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.92, WERN belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that WERN should not have too much problems paying its short term obligations.
The Quick ratio of WERN (1.87) is better than 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The earnings per share for WERN have decreased strongly by -48.12% in the last year.
The Earnings Per Share has been decreasing by -4.10% on average over the past years.
Looking at the last year, WERN shows a decrease in Revenue. The Revenue has decreased by -0.20% in the last year.
Measured over the past years, WERN shows a small growth in Revenue. The Revenue has been growing by 5.96% on average per year.
EPS 1Y (TTM)-48.12%
EPS 3Y-9.46%
EPS 5Y-4.1%
EPS growth Q2Q-60.61%
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.45%
Revenue growth 5Y5.96%
Revenue growth Q2Q-4.59%
3.2 Future
WERN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.05% yearly.
The Revenue is expected to grow by 5.62% on average over the next years.
EPS Next Y0.01%
EPS Next 2Y22.36%
EPS Next 3Y25.05%
EPS Next 5YN/A
Revenue Next Year0.27%
Revenue Next 2Y3.35%
Revenue Next 3Y5.62%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.22, WERN is valued on the expensive side.
WERN's Price/Earnings ratio is a bit cheaper when compared to the industry. WERN is cheaper than 77.78% of the companies in the same industry.
WERN is valuated rather cheaply when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.22, which indicates a rather expensive current valuation of WERN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WERN indicates a somewhat cheap valuation: WERN is cheaper than 69.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, WERN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
83.33% 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 | 5.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WERN's earnings are expected to grow with 25.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)2251.6
PEG (5Y)N/A
EPS Next 2Y22.36%
EPS Next 3Y25.05%
5. Dividend
5.1 Amount
WERN has a Yearly Dividend Yield of 1.61%.
WERN's Dividend Yield is rather good when compared to the industry average which is at 1.74. WERN pays more dividend than 80.56% of the companies in the same industry.
WERN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of WERN is nicely growing with an annual growth rate of 10.90%!
WERN has been paying a dividend for at least 10 years, so it has a reliable track record.
WERN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.9%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
WERN pays out 30.44% of its income as dividend. This is a sustainable payout ratio.
WERN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.44%
EPS Next 2Y22.36%
EPS Next 3Y25.05%
WERNER ENTERPRISES INC
NASDAQ:WERN (5/1/2024, 7:00:03 PM)
After market: 35.17 0 (0%)35.17
+0.97 (+2.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 18.22 | ||
| 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)2251.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 7.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.37% | ||
| PM (TTM) | 3.42% | ||
| GM | 81.68% | ||
| 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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.87 | ||
| 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)-48.12%
EPS 3Y-9.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.2%
Revenue growth 3Y11.45%
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