WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - Nasdaq - US9507551086 - Common Stock - Currency: USD
Overall WERN gets a fundamental rating of 4 out of 10. We evaluated WERN against 39 industry peers in the Ground Transportation industry. WERN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WERN is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years WERN has always been profitable.
Each year in the past 5 years WERN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.60%, WERN is doing worse than 61.54% of the companies in the same industry.
WERN's Return On Equity of 1.24% is on the low side compared to the rest of the industry. WERN is outperformed by 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.30%, WERN is doing worse than 61.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WERN is below the industry average of 8.06%.
| 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
The Profit Margin of WERN (0.60%) is worse than 64.10% of its industry peers.
WERN's Profit Margin has declined in the last couple of years.
WERN has a Operating Margin of 1.50%. This is in the lower half of the industry: WERN underperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of WERN has declined.
With an excellent Gross Margin value of 83.01%, WERN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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 | 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
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
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
An Altman-Z score of 2.70 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 2.70, WERN is in the better half of the industry, outperforming 64.10% 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 43.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.7 |
ROIC/WACC0.14
WACC9.17%
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.
WERN has a better Current ratio (1.66) than 84.62% 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.
With an excellent Quick ratio value of 1.62, WERN belongs to the best of the industry, outperforming 84.62% 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 -80.95% 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.
Looking at the last year, WERN shows a decrease in Revenue. The Revenue has decreased by -7.66% 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)-80.95%
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
The Earnings Per Share is expected to grow by 63.49% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.70% on average over the next years.
EPS Next Y-36.01%
EPS Next 2Y58.71%
EPS Next 3Y63.49%
EPS Next 5YN/A
Revenue Next Year-1.74%
Revenue Next 2Y2.22%
Revenue Next 3Y3.7%
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 98.57, 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 64.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of WERN to the average of the S&P500 Index (26.31), we can say WERN is valued expensively.
With a Price/Forward Earnings ratio of 20.29, WERN is valued on the expensive side.
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 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.57 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WERN is valued a bit cheaper than 79.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
WERN's earnings are expected to grow with 63.49% in the coming years. This may justify a more expensive valuation.
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 2.02%, WERN has a reasonable but not impressive dividend return.
WERN's Dividend Yield is rather good when compared to the industry average which is at 1.56. WERN pays more dividend than 87.18% of the companies in the same industry.
WERN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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 2Y58.71%
EPS Next 3Y63.49%
27.6
-0.19 (-0.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners98.61%
Inst Owner Change-1.26%
Ins Owners1.33%
Ins Owner Change0.48%
Market Cap1.70B
Analysts52
Price Target28.01 (1.49%)
Short Float %7.02%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)0%
PT rev (3m)-25.78%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)-85.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-71.3%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.57 | ||
| Fwd PE | 20.29 | ||
| P/S | 0.57 | ||
| P/FCF | N/A | ||
| P/OCF | 6.3 | ||
| P/B | 1.19 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)0.28
EY1.01%
EPS(NY)1.36
Fwd EY4.93%
FCF(TTM)-1.76
FCFYN/A
OCF(TTM)4.38
OCFY15.87%
SpS48.15
BVpS23.26
TBVpS19.97
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 | 2.7 |
F-Score5
WACC9.17%
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-1.74%
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 Year285.32%
EBIT Next 3Y80.73%
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%