We assign a fundamental rating of 4 out of 10 to WNC. WNC was compared to 132 industry peers in the Machinery industry. Both the profitability and the financial health of WNC get a neutral evaluation. Nothing too spectacular is happening here. WNC has a expensive valuation and it also scores bad on growth. WNC also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

WNC had negative earnings in the past year.
WNC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WNC reported negative net income in multiple years.
WNC had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 19.28%, WNC belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
WNC's Return On Equity of 62.16% is amongst the best of the industry. WNC outperforms 99.24% of its industry peers.
With an excellent Return On Invested Capital value of 32.32%, WNC belongs to the best of the industry, outperforming 99.24% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	19.28%
ROE	62.16%
ROIC	32.32%

ROA(3y)2.06%

ROA(5y)-0.42%

ROE(3y)-26.71%

ROE(5y)-20.76%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

WNC's Profit Margin of 15.89% is amongst the best of the industry. WNC outperforms 89.39% of its industry peers.
Looking at the Operating Margin, with a value of 22.63%, WNC belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
WNC has a worse Gross Margin (7.27%) than 88.64% of its industry peers.
WNC's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	22.63%
PM (TTM)	15.89%
GM	7.27%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y7.71%

GM growth 5Y0.61%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, WNC has less shares outstanding
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

An Altman-Z score of 2.89 indicates that WNC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WNC (2.89) is comparable to the rest of the industry.
The Debt to FCF ratio of WNC is 6.74, which is on the high side as it means it would take WNC, 6.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.74, WNC is in line with its industry, outperforming 47.73% of the companies in the same industry.
WNC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.01, WNC is doing worse than 77.27% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.01
Debt/FCF	6.74
Altman-Z	2.89

ROIC/WACC3.66

WACC8.83%

2.3 Liquidity

WNC has a Current Ratio of 1.35. 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 1.35, WNC is doing worse than 79.55% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that WNC may have some problems paying its short term obligations.
The Quick ratio of WNC (0.86) is worse than 73.48% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.35
Quick Ratio	0.86

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

WNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -154.08%.
WNC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.63% yearly.
WNC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.95%.
Measured over the past years, WNC shows a decrease in Revenue. The Revenue has been decreasing by -3.44% on average per year.

EPS 1Y (TTM)-154.08%

EPS 3Y29.64%

EPS 5Y-5.63%

EPS Q2Q%-368.42%

Revenue 1Y (TTM)-22.95%

Revenue growth 3Y2.58%

Revenue growth 5Y-3.44%

Sales Q2Q%-17.77%

3.2 Future

Based on estimates for the next years, WNC will show a very negative growth in Earnings Per Share. The EPS will decrease by -45.22% on average per year.
WNC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.72% yearly.

EPS Next Y-263.09%

EPS Next 2Y-45.22%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-20.48%

Revenue Next 2Y-4.72%

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.

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4. Valuation

4.1 Price/Earnings Ratio

WNC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
WNC is valuated quite expensively with a Price/Forward Earnings ratio of 27.67.
The rest of the industry has a similar Price/Forward Earnings ratio as WNC.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, WNC is valued at the same level.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	27.67

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, WNC is valued cheaply inside the industry as 98.48% of the companies are valued more expensively.
97.73% 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	6.54
EV/EBITDA	1.72

4.3 Compensation for Growth

WNC's earnings are expected to decrease with -45.22% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-45.22%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.07%, WNC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.01, WNC pays a better dividend. On top of this WNC pays more dividend than 93.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, WNC pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.07%

5.2 History

The dividend of WNC has a limited annual growth rate of 0.43%.
WNC has been paying a dividend for at least 10 years, so it has a reliable track record.
As WNC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Dividend Growth(5Y)0.43%

Div Incr Years0

Div Non Decr Years5

5.3 Sustainability

5.38% of the earnings are spent on dividend by WNC. This is a low number and sustainable payout ratio.

DP5.38%

EPS Next 2Y-45.22%

EPS Next 3YN/A

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WABASH NATIONAL CORP / WNC FAQ

What is the fundamental rating for WNC stock?

ChartMill assigns a fundamental rating of 4 / 10 to WNC.

What is the valuation status of WABASH NATIONAL CORP (WNC) stock?

ChartMill assigns a valuation rating of 3 / 10 to WABASH NATIONAL CORP (WNC). This can be considered as Overvalued.

How profitable is WABASH NATIONAL CORP (WNC) stock?

WABASH NATIONAL CORP (WNC) has a profitability rating of 5 / 10.

What is the expected EPS growth for WABASH NATIONAL CORP (WNC) stock?

The Earnings per Share (EPS) of WABASH NATIONAL CORP (WNC) is expected to decline by -263.09% in the next year.

Is the dividend of WABASH NATIONAL CORP sustainable?

The dividend rating of WABASH NATIONAL CORP (WNC) is 7 / 10 and the dividend payout ratio is 5.38%.