27.79 USD
-0.68 (-2.39%)
27.79 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to FWRD. FWRD was compared to 23 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. FWRD has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- FWRD had negative earnings in the past year.
- FWRD had a positive operating cash flow in the past year.
- FWRD had positive earnings in 4 of the past 5 years.
- FWRD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -5.28%, FWRD perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- FWRD's Return On Equity of -105.62% is on the low side compared to the rest of the industry. FWRD is outperformed by 73.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.33%, FWRD is in line with its industry, outperforming 56.52% of the companies in the same industry.
- FWRD had an Average Return On Invested Capital over the past 3 years of 8.28%. This is below the industry average of 12.36%.
- The 3 year average ROIC (8.28%) for FWRD is well above the current ROIC(2.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.28% | ||
| ROE | -105.62% | ||
| ROIC | 2.33% |
ROA(3y)-2.87%
ROA(5y)0.6%
ROE(3y)-123.07%
ROE(5y)-69.45%
ROIC(3y)8.28%
ROIC(5y)8.77%
1.3 Margins
- FWRD has a Operating Margin of 2.88%. This is in the better half of the industry: FWRD outperforms 60.87% of its industry peers.
- FWRD's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 41.38%, FWRD belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
- FWRD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.88% | ||
| PM (TTM) | N/A | ||
| GM | 41.38% |
OM growth 3Y-41.72%
OM growth 5Y-27.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.2%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FWRD is creating some value.
- FWRD has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FWRD has more shares outstanding
- Compared to 1 year ago, FWRD has about the same debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.00, we must say that FWRD is in the distress zone and has some risk of bankruptcy.
- FWRD has a worse Altman-Z score (1.00) than 69.57% of its industry peers.
- FWRD has a debt to FCF ratio of 111.57. This is a negative value and a sign of low solvency as FWRD would need 111.57 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 111.57, FWRD is doing good in the industry, outperforming 60.87% of the companies in the same industry.
- A Debt/Equity ratio of 12.24 is on the high side and indicates that FWRD has dependencies on debt financing.
- FWRD has a worse Debt to Equity ratio (12.24) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 12.24 | ||
| Debt/FCF | 111.57 | ||
| Altman-Z | 1 |
ROIC/WACC0.31
WACC7.6%
2.3 Liquidity
- FWRD has a Current Ratio of 1.20. This is a normal value and indicates that FWRD is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.20, FWRD is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
- A Quick Ratio of 1.20 indicates that FWRD should not have too much problems paying its short term obligations.
- FWRD has a worse Quick ratio (1.20) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for FWRD have decreased strongly by -343.35% in the last year.
- Looking at the last year, FWRD shows a very negative growth in Revenue. The Revenue has decreased by -22.27% in the last year.
- FWRD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.28% yearly.
EPS 1Y (TTM)-343.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.49%
Revenue 1Y (TTM)-22.27%
Revenue growth 3Y14.17%
Revenue growth 5Y15.28%
Sales Q2Q%-3.69%
3.2 Future
- The Earnings Per Share is expected to grow by 30.07% on average over the next years. This is a very strong growth
- Based on estimates for the next years, FWRD will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y40.63%
EPS Next 2Y36.83%
EPS Next 3Y30.07%
EPS Next 5YN/A
Revenue Next Year-0.39%
Revenue Next 2Y2.15%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- FWRD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for FWRD. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 65.22% of the companies in the same industry are more expensive than FWRD, based on the Enterprise Value to EBITDA ratio.
- FWRD's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FWRD is cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.11 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
- FWRD's earnings are expected to grow with 30.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.83%
EPS Next 3Y30.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.48%, FWRD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.11, FWRD pays a better dividend. On top of this FWRD pays more dividend than 82.61% of the companies listed in the same industry.
- FWRD's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
- FWRD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y36.83%
EPS Next 3Y30.07%
FORWARD AIR CORP / FWRD FAQ
Can you provide the ChartMill fundamental rating for FORWARD AIR CORP?
ChartMill assigns a fundamental rating of 3 / 10 to FWRD.
What is the valuation status for FWRD stock?
ChartMill assigns a valuation rating of 2 / 10 to FORWARD AIR CORP (FWRD). This can be considered as Overvalued.
Can you provide the profitability details for FORWARD AIR CORP?
FORWARD AIR CORP (FWRD) has a profitability rating of 4 / 10.
What is the expected EPS growth for FORWARD AIR CORP (FWRD) stock?
The Earnings per Share (EPS) of FORWARD AIR CORP (FWRD) is expected to grow by 40.63% in the next year.
Is the dividend of FORWARD AIR CORP sustainable?
The dividend rating of FORWARD AIR CORP (FWRD) is 4 / 10 and the dividend payout ratio is 0%.