WABASH NATIONAL CORP (WNC)
US9295661071 - Common Stock
Overall WNC gets a fundamental rating of 7 out of 10. We evaluated WNC against 132 industry peers in the Machinery industry. WNC gets an excellent profitability rating and is at the same time showing great financial health properties. WNC has a bad growth rate and is valued cheaply. These ratings could make WNC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year WNC was profitable.
In the past year WNC had a positive cash flow from operations.
WNC had positive earnings in 4 of the past 5 years.
WNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WNC has a better Return On Assets (16.97%) than 95.35% of its industry peers.
The Return On Equity of WNC (42.08%) is better than 95.35% of its industry peers.
WNC has a Return On Invested Capital of 24.05%. This is amongst the best in the industry. WNC outperforms 97.67% of its industry peers.
WNC had an Average Return On Invested Capital over the past 3 years of 15.03%. This is above the industry average of 10.73%.
The 3 year average ROIC (15.03%) for WNC is below the current ROIC(24.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.97% | ||
| ROE | 42.08% | ||
| ROIC | 24.05% |
ROA(3y)8.8%
ROA(5y)4.98%
ROE(3y)23.56%
ROE(5y)12.76%
ROIC(3y)15.03%
ROIC(5y)11.48%
1.3 Margins
WNC's Profit Margin of 9.12% is fine compared to the rest of the industry. WNC outperforms 68.22% of its industry peers.
WNC's Profit Margin has improved in the last couple of years.
The Operating Margin of WNC (12.31%) is better than 65.12% of its industry peers.
WNC's Operating Margin has improved in the last couple of years.
WNC has a Gross Margin of 19.64%. This is in the lower half of the industry: WNC underperforms 67.44% of its industry peers.
In the last couple of years the Gross Margin of WNC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.31% | ||
| PM (TTM) | 9.12% | ||
| GM | 19.64% |
OM growth 3Y109.09%
OM growth 5Y15.46%
PM growth 3YN/A
PM growth 5Y24.39%
GM growth 3Y22.14%
GM growth 5Y9.44%
2. Health
2.1 Basic Checks
WNC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WNC has less shares outstanding than it did 1 year ago.
WNC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WNC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.18 indicates that WNC is not in any danger for bankruptcy at the moment.
WNC has a better Altman-Z score (4.18) than 70.54% of its industry peers.
WNC has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
The Debt to FCF ratio of WNC (1.84) is better than 80.62% of its industry peers.
A Debt/Equity ratio of 0.72 indicates that WNC is somewhat dependend on debt financing.
WNC has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: WNC underperforms 69.77% of its industry peers.
Although WNC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 4.18 |
ROIC/WACC2.73
WACC8.8%
2.3 Liquidity
WNC has a Current Ratio of 1.93. This is a normal value and indicates that WNC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.93, WNC is in line with its industry, outperforming 44.19% of the companies in the same industry.
WNC has a Quick Ratio of 1.17. This is a normal value and indicates that WNC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.17, WNC is in line with its industry, outperforming 48.06% of the companies in the same industry.
WNC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.78% over the past year.
Measured over the past years, WNC shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.38% on average per year.
The Revenue has been growing slightly by 1.37% in the past year.
WNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.27% yearly.
EPS 1Y (TTM)112.78%
EPS 3Y218.14%
EPS 5Y27.38%
EPS growth Q2Q29.76%
Revenue 1Y (TTM)1.37%
Revenue growth 3Y19.62%
Revenue growth 5Y2.27%
Revenue growth Q2Q-9.33%
3.2 Future
The Earnings Per Share is expected to decrease by -25.93% on average over the next years. This is quite bad
WNC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.31% yearly.
EPS Next Y-53.65%
EPS Next 2Y-25.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.72%
Revenue Next 2Y-5.31%
Revenue Next 3YN/A
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 decreasing.
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
With a Price/Earnings ratio of 5.33, the valuation of WNC can be described as very cheap.
Based on the Price/Earnings ratio, WNC is valued cheaply inside the industry as 98.45% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.20, WNC is valued rather cheaply.
A Price/Forward Earnings ratio of 11.50 indicates a reasonable valuation of WNC.
Based on the Price/Forward Earnings ratio, WNC is valued cheaper than 88.37% of the companies in the same industry.
WNC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.33 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
97.67% of the companies in the same industry are more expensive than WNC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WNC indicates a rather cheap valuation: WNC is cheaper than 99.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.39 | ||
| EV/EBITDA | 3.87 |
4.3 Compensation for Growth
The excellent profitability rating of WNC may justify a higher PE ratio.
WNC's earnings are expected to decrease with -25.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-25.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, WNC has a reasonable but not impressive dividend return.
WNC's Dividend Yield is a higher than the industry average which is at 1.71.
Compared to an average S&P500 Dividend Yield of 2.45, WNC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
WNC has been paying a dividend for at least 10 years, so it has a reliable track record.
WNC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
6.86% of the earnings are spent on dividend by WNC. This is a low number and sustainable payout ratio.
DP6.86%
EPS Next 2Y-25.93%
EPS Next 3YN/A
WABASH NATIONAL CORP
NYSE:WNC (4/23/2024, 7:04:00 PM)
After market: 25.75 0 (0%)25.75
-0.07 (-0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.33 | ||
| Fwd PE | 11.5 | ||
| 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)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.97% | ||
| ROE | 42.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.31% | ||
| PM (TTM) | 9.12% | ||
| GM | 19.64% | ||
| 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 Turnover1.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.17 | ||
| 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)112.78%
EPS 3Y218.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y-53.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.37%
Revenue growth 3Y19.62%
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
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