WABASH NATIONAL CORP (WNC)
US9295661071 - Common Stock
We assign a fundamental rating of 5 out of 10 to WNC. WNC was compared to 132 industry peers in the Machinery industry. WNC scores excellent on profitability, but there are some minor concerns on its financial health. WNC is cheap, but on the other hand it scores bad on growth. These ratings could make WNC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
WNC had positive earnings in the past year.
WNC had a positive operating cash flow in the past year.
Of the past 5 years WNC 4 years were profitable.
Of the past 5 years WNC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.41%, WNC belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
WNC has a better Return On Equity (27.77%) than 90.00% of its industry peers.
The Return On Invested Capital of WNC (16.34%) is better than 88.46% 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 11.21%.
The last Return On Invested Capital (16.34%) for WNC is above the 3 year average (15.03%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 27.77% | ||
| ROIC | 16.34% |
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
Looking at the Profit Margin, with a value of 6.66%, WNC is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WNC has grown nicely.
WNC has a Operating Margin (9.30%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WNC has grown nicely.
The Gross Margin of WNC (17.31%) is worse than 76.92% of its industry peers.
WNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.3% | ||
| PM (TTM) | 6.66% | ||
| GM | 17.31% |
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.
The number of shares outstanding for WNC has been reduced compared to 1 year ago.
WNC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WNC has an improved debt to assets ratio.
2.2 Solvency
WNC has an Altman-Z score of 3.64. This indicates that WNC is financially healthy and has little risk of bankruptcy at the moment.
WNC's Altman-Z score of 3.64 is fine compared to the rest of the industry. WNC outperforms 64.62% of its industry peers.
The Debt to FCF ratio of WNC is 4.62, which is a neutral value as it means it would take WNC, 4.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WNC (4.62) is comparable to the rest of the industry.
WNC has a Debt/Equity ratio of 0.72. This is a neutral value indicating WNC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, WNC is not doing good in the industry: 72.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | 3.64 |
ROIC/WACC2.12
WACC7.7%
2.3 Liquidity
WNC has a Current Ratio of 1.99. This is a normal value and indicates that WNC is financially healthy and should not expect problems in meeting its short term obligations.
WNC has a Current ratio of 1.99. This is comparable to the rest of the industry: WNC outperforms 43.08% of its industry peers.
A Quick Ratio of 1.15 indicates that WNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, WNC is in line with its industry, outperforming 41.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
WNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.48%.
The Earnings Per Share has been growing by 27.38% on average over the past years. This is a very strong growth
Looking at the last year, WNC shows a very negative growth in Revenue. The Revenue has decreased by -12.42% in the last year.
Measured over the past years, WNC shows a small growth in Revenue. The Revenue has been growing by 2.27% on average per year.
EPS 1Y (TTM)-20.48%
EPS 3Y218.14%
EPS 5Y27.38%
EPS Q2Q%-58.44%
Revenue 1Y (TTM)-12.42%
Revenue growth 3Y19.62%
Revenue growth 5Y2.27%
Sales Q2Q%-19.81%
3.2 Future
WNC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -39.47% yearly.
The Revenue is expected to decrease by -9.29% on average over the next years.
EPS Next Y-68.41%
EPS Next 2Y-39.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-21.37%
Revenue Next 2Y-9.29%
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 5.96, the valuation of WNC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of WNC indicates a rather cheap valuation: WNC is cheaper than 98.46% of the companies listed in the same industry.
WNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.57.
The Price/Forward Earnings ratio is 11.12, which indicates a very decent valuation of WNC.
Based on the Price/Forward Earnings ratio, WNC is valued cheaper than 83.85% 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 22.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.96 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WNC is valued cheaply inside the industry as 97.69% of the companies are valued more expensively.
92.31% of the companies in the same industry are more expensive than WNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
WNC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as WNC's earnings are expected to decrease with -39.47% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-39.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WNC has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.76, WNC pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.26, WNC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
WNC has paid a dividend for at least 10 years, which is 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 Years4
5.3 Sustainability
9.99% of the earnings are spent on dividend by WNC. This is a low number and sustainable payout ratio.
DP9.99%
EPS Next 2Y-39.47%
EPS Next 3YN/A
WABASH NATIONAL CORP
NYSE:WNC (9/17/2024, 5:06:08 PM)
After market: 19.68 0 (0%)19.68
+0.18 (+0.92%)
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 Cap865.92M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 5.96 | ||
| Fwd PE | 11.12 | ||
| 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)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.41% | ||
| ROE | 27.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.3% | ||
| PM (TTM) | 6.66% | ||
| GM | 17.31% | ||
| 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 Turnover1.71
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 | 1.99 | ||
| Quick Ratio | 1.15 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-20.48%
EPS 3Y218.14%
EPS 5Y
EPS Q2Q%
EPS Next Y-68.41%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.42%
Revenue growth 3Y19.62%
Revenue growth 5Y
Sales 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