Despite its impressive fundamentals, NYSE:WNC remains undervalued.

Last update: Jan 9, 2024

Our stock screening tool has identified WABASH NATIONAL CORP (NYSE:WNC) as an undervalued gem with strong fundamentals. NYSE:WNC boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

ChartMill's Evaluation of Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:WNC has received a 9 out of 10:

A Price/Earnings ratio of 5.49 indicates a rather cheap valuation of WNC.
Compared to the rest of the industry, the Price/Earnings ratio of WNC indicates a rather cheap valuation: WNC is cheaper than 98.45% of the companies listed in the same industry.
WNC is valuated cheaply when we compare the Price/Earnings ratio to 25.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.00, the valuation of WNC can be described as very cheap.
94.57% of the companies in the same industry are more expensive than WNC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.82, WNC is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, WNC is valued cheaply inside the industry as 96.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WNC is valued cheaper than 93.02% of the companies in the same industry.
WNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WNC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WNC's earnings are expected to grow with 18.66% in the coming years.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:WNC, the assigned 6 is noteworthy for profitability:

WNC has a better Return On Assets (16.00%) than 96.12% of its industry peers.
WNC has a better Return On Equity (42.86%) than 96.12% of its industry peers.
The Return On Invested Capital of WNC (25.92%) is better than 98.45% of its industry peers.
The last Return On Invested Capital (25.92%) for WNC is above the 3 year average (8.13%), which is a sign of increasing profitability.
The Profit Margin of WNC (8.56%) is better than 67.44% of its industry peers.
Looking at the Operating Margin, with a value of 11.88%, WNC is in the better half of the industry, outperforming 63.57% of the companies in the same industry.

Evaluating Health: NYSE:WNC

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:WNC has earned a 5 out of 10:

WNC has an Altman-Z score of 4.05. This indicates that WNC is financially healthy and has little risk of bankruptcy at the moment.
WNC's Altman-Z score of 4.05 is fine compared to the rest of the industry. WNC outperforms 71.32% of its industry peers.
WNC has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as WNC would need 2.60 years to pay back of all of its debts.
WNC has a better Debt to FCF ratio (2.60) than 75.97% of its industry peers.

Assessing Growth Metrics for NYSE:WNC

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:WNC has achieved a 5 out of 10:

WNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 205.33%, which is quite impressive.
Measured over the past years, WNC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
Looking at the last year, WNC shows a quite strong growth in Revenue. The Revenue has grown by 11.79% in the last year.
The Earnings Per Share is expected to grow by 18.66% on average over the next years. This is quite good.
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of WNC contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.