FORWARD AIR CORP (FWRD) Stock Fundamental Analysis
NASDAQ:FWRD - Nasdaq - US3498531017 - Common Stock
FWRD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Air Freight & Logistics industry. FWRD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year FWRD has reported a negative cash flow from operations.
Each year in the past 5 years FWRD has been profitable.
FWRD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -20.83%, FWRD is not doing good in the industry: 84.21% of the companies in the same industry are doing better.
The Return On Equity of FWRD (-281.54%) is worse than 78.95% of its industry peers.
FWRD has a Return On Invested Capital of 5.33%. This is in the better half of the industry: FWRD outperforms 63.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FWRD is in line with the industry average of 10.93%.
The last Return On Invested Capital (5.33%) for FWRD is well below the 3 year average (11.88%), which needs to be investigated, but indicates that FWRD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.83% | ||
| ROE | -281.54% | ||
| ROIC | 5.33% |
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 (5.78%) than 68.42% of its industry peers.
FWRD's Operating Margin has been stable in the last couple of years.
FWRD has a better Gross Margin (44.69%) than 78.95% of its industry peers.
FWRD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 44.69% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FWRD is creating value.
FWRD has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FWRD has been reduced compared to 5 years ago.
FWRD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that FWRD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.37, FWRD is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
A Debt/Equity ratio of 7.55 is on the high side and indicates that FWRD has dependencies on debt financing.
The Debt to Equity ratio of FWRD (7.55) is worse than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC0.81
WACC6.55%
2.3 Liquidity
FWRD has a Current Ratio of 1.21. This is a normal value and indicates that FWRD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, FWRD is in line with its industry, outperforming 47.37% of the companies in the same industry.
FWRD has a Quick Ratio of 1.21. 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 Quick ratio value of 1.21, FWRD perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
FWRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.01%.
The Earnings Per Share has been growing slightly by 5.18% on average over the past years.
Looking at the last year, FWRD shows a very strong growth in Revenue. The Revenue has grown by 86.33%.
Measured over the past years, FWRD shows a small growth in Revenue. The Revenue has been growing by 3.80% on average per year.
EPS 1Y (TTM)-63.01%
EPS 3Y69.35%
EPS 5Y5.18%
EPS Q2Q%-275.76%
Revenue 1Y (TTM)86.33%
Revenue growth 3Y2.59%
Revenue growth 5Y3.8%
Sales Q2Q%58.65%
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 -31.25% on average per year.
The Revenue is expected to grow by 17.04% on average over the next years. This is quite good.
EPS Next Y-118%
EPS Next 2Y-63.83%
EPS Next 3Y-31.25%
EPS Next 5YN/A
Revenue Next Year51.78%
Revenue Next 2Y27.7%
Revenue Next 3Y17.04%
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.
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
With a Price/Earnings ratio of 18.76, FWRD is valued on the expensive side.
63.16% of the companies in the same industry are more expensive than FWRD, based on the Price/Earnings ratio.
FWRD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.19.
A Price/Forward Earnings ratio of 63.96 indicates a quite expensive valuation of FWRD.
FWRD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.37, FWRD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 63.96 |
4.2 Price Multiples
FWRD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FWRD is cheaper than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
The decent profitability rating of FWRD may justify a higher PE ratio.
A cheap valuation may be justified as FWRD's earnings are expected to decrease with -31.25% in the coming years.
PEG (NY)N/A
PEG (5Y)3.62
EPS Next 2Y-63.83%
EPS Next 3Y-31.25%
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 2.64, FWRD pays a bit more dividend than its industry peers.
FWRD's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.59%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
The earnings of FWRD are negative and hence is the payout ratio. FWRD will probably not be able to sustain this dividend level.
DP-0.97%
EPS Next 2Y-63.83%
EPS Next 3Y-31.25%
FORWARD AIR CORP
NASDAQ:FWRD (1/22/2025, 8:26:11 PM)
After market: 34.14 0 (0%)34.14
-0.71 (-2.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners93.54%
Inst Owner Change1.02%
Ins Owners1.21%
Ins Owner Change2.04%
Market Cap988.35M
Analysts74.29
Price Target37.12 (8.73%)
Short Float %17.86%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.96
Dividend Growth(5Y)8.59%
DP-0.97%
Div Incr Years0
Div Non Decr Years18
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)484.21%
Min EPS beat(2)-944.44%
Max EPS beat(2)1912.87%
EPS beat(4)1
Avg EPS beat(4)119.83%
Min EPS beat(4)-944.44%
Max EPS beat(4)1912.87%
EPS beat(8)2
Avg EPS beat(8)52.81%
EPS beat(12)5
Avg EPS beat(12)38.39%
EPS beat(16)7
Avg EPS beat(16)20.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-8.56%
Min Revenue beat(4)-18.39%
Max Revenue beat(4)-1.85%
Revenue beat(8)0
Avg Revenue beat(8)-8.34%
Revenue beat(12)3
Avg Revenue beat(12)-5.3%
Revenue beat(16)5
Avg Revenue beat(16)-3.57%
PT rev (1m)0%
PT rev (3m)16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-127.96%
EPS NY rev (1m)0%
EPS NY rev (3m)31.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 63.96 | ||
| P/S | 0.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.49 |
EPS(TTM)1.82
EY5.33%
EPS(NY)0.53
Fwd EY1.56%
FCF(TTM)-2.31
FCFYN/A
OCF(TTM)-1.03
OCFYN/A
SpS110.96
BVpS7.81
TBVpS-52.62
PEG (NY)N/A
PEG (5Y)3.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.83% | ||
| ROE | -281.54% | ||
| ROCE | 7.13% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 19.28% | ||
| OM | 5.78% | ||
| PM (TTM) | N/A | ||
| GM | 44.69% | ||
| FCFM | N/A |
ROA(3y)10.3%
ROA(5y)8.36%
ROE(3y)22.22%
ROE(5y)17.17%
ROIC(3y)11.88%
ROIC(5y)10.36%
ROICexc(3y)12.41%
ROICexc(5y)10.9%
ROICexgc(3y)22.16%
ROICexgc(5y)19.6%
ROCE(3y)15.88%
ROCE(5y)13.85%
ROICexcg growth 3Y-26.44%
ROICexcg growth 5Y-27.85%
ROICexc growth 3Y-14.34%
ROICexc growth 5Y-20.73%
OM growth 3Y22.23%
OM growth 5Y0.63%
PM growth 3Y87.75%
PM growth 5Y8.66%
GM growth 3Y5.21%
GM growth 5Y2.34%
F-Score1
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.58 | ||
| Cap/Depr | 30.94% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 1.37 |
F-Score1
WACC6.55%
ROIC/WACC0.81
Cap/Depr(3y)79.38%
Cap/Depr(5y)70.66%
Cap/Sales(3y)2.22%
Cap/Sales(5y)2.01%
Profit Quality(3y)93.81%
Profit Quality(5y)143.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-63.01%
EPS 3Y69.35%
EPS 5Y5.18%
EPS Q2Q%-275.76%
EPS Next Y-118%
EPS Next 2Y-63.83%
EPS Next 3Y-31.25%
EPS Next 5YN/A
Revenue 1Y (TTM)86.33%
Revenue growth 3Y2.59%
Revenue growth 5Y3.8%
Sales Q2Q%58.65%
Revenue Next Year51.78%
Revenue Next 2Y27.7%
Revenue Next 3Y17.04%
Revenue Next 5YN/A
EBIT growth 1Y17.87%
EBIT growth 3Y25.39%
EBIT growth 5Y4.45%
EBIT Next Year87.36%
EBIT Next 3Y33.22%
EBIT Next 5YN/A
FCF growth 1Y-133.51%
FCF growth 3Y32.75%
FCF growth 5Y5.92%
OCF growth 1Y-112.35%
OCF growth 3Y28.9%
OCF growth 5Y3.52%