FORWARD AIR CORP (FWRD)
US3498531017 - Common Stock
Overall FWRD gets a fundamental rating of 4 out of 10. We evaluated FWRD against 20 industry peers in the Air Freight & Logistics industry. While FWRD is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, FWRD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
FWRD had positive earnings in the past year.
FWRD had a negative operating cash flow in the past year.
In the past 5 years FWRD has always been profitable.
Each year in the past 5 years FWRD had a positive operating cash flow.
1.2 Ratios
FWRD has a worse Return On Assets (-18.07%) than 84.21% of its industry peers.
The Return On Equity of FWRD (-195.31%) is worse than 78.95% of its industry peers.
The Return On Invested Capital of FWRD (4.65%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FWRD is in line with the industry average of 13.67%.
The 3 year average ROIC (11.88%) for FWRD is well above the current ROIC(4.65%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.07% | ||
| ROE | -195.31% | ||
| ROIC | 4.65% |
ROA(3y)10.3%
ROA(5y)8.36%
ROE(3y)22.22%
ROE(5y)17.17%
ROIC(3y)11.88%
ROIC(5y)10.36%
1.3 Margins
In the last couple of years the Profit Margin of FWRD has grown nicely.
FWRD has a better Operating Margin (5.54%) than 68.42% of its industry peers.
In the last couple of years the Operating Margin of FWRD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 45.80%, FWRD is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
FWRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.54% | ||
| PM (TTM) | N/A | ||
| GM | 45.8% |
OM growth 3Y22.23%
OM growth 5Y0.63%
PM growth 3Y87.75%
PM growth 5Y8.66%
GM growth 3Y5.21%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FWRD is creating value.
Compared to 1 year ago, FWRD has less shares outstanding
The number of shares outstanding for FWRD has been reduced compared to 5 years ago.
The debt/assets ratio for FWRD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that FWRD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FWRD (1.30) is comparable to the rest of the industry.
FWRD has a Debt/Equity ratio of 6.03. This is a high value indicating a heavy dependency on external financing.
FWRD has a worse Debt to Equity ratio (6.03) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.77
WACC6.01%
2.3 Liquidity
A Current Ratio of 1.33 indicates that FWRD should not have too much problems paying its short term obligations.
The Current ratio of FWRD (1.33) is better than 63.16% of its industry peers.
A Quick Ratio of 1.33 indicates that FWRD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.33, FWRD is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
FWRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.35%.
Measured over the past 5 years, FWRD shows a small growth in Earnings Per Share. The EPS has been growing by 5.18% on average per year.
The Revenue has grown by 63.12% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.80% on average over the past years.
EPS 1Y (TTM)-22.35%
EPS 3Y69.35%
EPS 5Y5.18%
EPS Q2Q%272.53%
Revenue 1Y (TTM)63.12%
Revenue growth 3Y2.59%
Revenue growth 5Y3.8%
Sales Q2Q%60.04%
3.2 Future
Based on estimates for the next years, FWRD will show a very negative growth in Earnings Per Share. The EPS will decrease by -37.00% on average per year.
FWRD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.18% yearly.
EPS Next Y-119.44%
EPS Next 2Y-68.94%
EPS Next 3Y-37%
EPS Next 5YN/A
Revenue Next Year51.9%
Revenue Next 2Y28.26%
Revenue Next 3Y19.18%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.41, which indicates a rather cheap valuation of FWRD.
94.74% of the companies in the same industry are more expensive than FWRD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 30.20, FWRD is valued rather cheaply.
A Price/Forward Earnings ratio of 85.67 indicates a quite expensive valuation of FWRD.
FWRD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FWRD to the average of the S&P500 Index (23.28), we can say FWRD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 85.67 |
4.2 Price Multiples
FWRD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FWRD is cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
FWRD's earnings are expected to decrease with -37.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y-68.94%
EPS Next 3Y-37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, FWRD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.66, FWRD pays a better dividend. On top of this FWRD pays more dividend than 89.47% of the companies listed in the same industry.
FWRD's Dividend Yield is a higher than the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
The dividend of FWRD is nicely growing with an annual growth rate of 8.59%!
FWRD has paid a dividend for at least 10 years, which is a reliable track record.
FWRD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.59%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
FWRD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-2.24%
EPS Next 2Y-68.94%
EPS Next 3Y-37%
FORWARD AIR CORP
NASDAQ:FWRD (11/4/2024, 8:10:51 PM)
After market: 32 -1.73 (-5.13%)33.73
-0.51 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap934.32M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 85.67 | ||
| 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)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.07% | ||
| ROE | -195.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.54% | ||
| PM (TTM) | N/A | ||
| GM | 45.8% | ||
| 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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| 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)-22.35%
EPS 3Y69.35%
EPS 5Y
EPS Q2Q%
EPS Next Y-119.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)63.12%
Revenue growth 3Y2.59%
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