WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - Nasdaq - US9507551086 - Common Stock
Taking everything into account, WERN scores 4 out of 10 in our fundamental rating. WERN was compared to 38 industry peers in the Ground Transportation industry. WERN has only an average score on both its financial health and profitability. WERN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WERN was profitable.
In the past year WERN had a positive cash flow from operations.
WERN had positive earnings in each of the past 5 years.
Each year in the past 5 years WERN had a positive operating cash flow.
1.2 Ratios
WERN's Return On Assets of 1.47% is on the low side compared to the rest of the industry. WERN is outperformed by 63.16% of its industry peers.
WERN's Return On Equity of 3.17% is on the low side compared to the rest of the industry. WERN is outperformed by 60.53% of its industry peers.
WERN has a worse Return On Invested Capital (2.49%) than 60.53% of its industry peers.
WERN had an Average Return On Invested Capital over the past 3 years of 7.87%. This is in line with the industry average of 7.67%.
The 3 year average ROIC (7.87%) for WERN is well above the current ROIC(2.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 3.17% | ||
| ROIC | 2.49% |
ROA(3y)7.1%
ROA(5y)7.39%
ROE(3y)14.53%
ROE(5y)14.55%
ROIC(3y)7.87%
ROIC(5y)8.41%
1.3 Margins
With a Profit Margin value of 1.48%, WERN is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
WERN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.93%, WERN is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WERN has declined.
WERN's Gross Margin of 82.29% is amongst the best of the industry. WERN outperforms 92.11% of its industry peers.
In the last couple of years the Gross Margin of WERN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.93% | ||
| PM (TTM) | 1.48% | ||
| GM | 82.29% |
OM growth 3Y-17.55%
OM growth 5Y-10.04%
PM growth 3Y-21.7%
PM growth 5Y-12.93%
GM growth 3Y-1.69%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
WERN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WERN has more shares outstanding
WERN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WERN has been reduced compared to a year ago.
2.2 Solvency
WERN has an Altman-Z score of 2.86. This is not the best score and indicates that WERN is in the grey zone with still only limited risk for bankruptcy at the moment.
WERN has a Altman-Z score of 2.86. This is in the better half of the industry: WERN outperforms 63.16% of its industry peers.
WERN has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
WERN has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.86 |
ROIC/WACC0.32
WACC7.88%
2.3 Liquidity
WERN has a Current Ratio of 1.53. This is a normal value and indicates that WERN is financially healthy and should not expect problems in meeting its short term obligations.
WERN has a better Current ratio (1.53) than 86.84% of its industry peers.
WERN has a Quick Ratio of 1.49. This is a normal value and indicates that WERN is financially healthy and should not expect problems in meeting its short term obligations.
WERN has a Quick ratio of 1.49. This is amongst the best in the industry. WERN outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for WERN have decreased strongly by -66.40% in the last year.
Measured over the past years, WERN shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.10% on average per year.
The Revenue has decreased by -6.79% in the past year.
The Revenue has been growing slightly by 5.96% on average over the past years.
EPS 1Y (TTM)-66.4%
EPS 3Y-9.46%
EPS 5Y-4.1%
EPS Q2Q%-64.29%
Revenue 1Y (TTM)-6.79%
Revenue growth 3Y11.45%
Revenue growth 5Y5.96%
Sales Q2Q%-8.81%
3.2 Future
WERN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.08% yearly.
Based on estimates for the next years, WERN will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y-64.2%
EPS Next 2Y-15.05%
EPS Next 3Y8.08%
EPS Next 5YN/A
Revenue Next Year-7.47%
Revenue Next 2Y-1.88%
Revenue Next 3Y1.31%
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 accelerating.
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
With a Price/Earnings ratio of 44.04, WERN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WERN is valued a bit more expensive than 65.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.19, WERN is valued quite expensively.
With a Price/Forward Earnings ratio of 26.87, WERN can be considered very expensive at the moment.
WERN's Price/Forward Earnings is on the same level as the industry average.
WERN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.04 | ||
| Fwd PE | 26.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WERN is valued a bit cheaper than 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.05%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
WERN has a Yearly Dividend Yield of 1.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.27, WERN pays a better dividend. On top of this WERN pays more dividend than 86.84% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.28, WERN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of WERN is nicely growing with an annual growth rate of 10.90%!
WERN has been paying a dividend for at least 10 years, so it has a reliable track record.
WERN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.9%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
76.93% of the earnings are spent on dividend by WERN. This is not a sustainable payout ratio.
WERN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.93%
EPS Next 2Y-15.05%
EPS Next 3Y8.08%
WERNER ENTERPRISES INC
NASDAQ:WERN (1/22/2025, 8:00:02 PM)
Premarket: 38 +0.57 (+1.52%)37.43
+0.27 (+0.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change0.01%
Ins Owners1.23%
Ins Owner Change0.22%
Market Cap2.31B
Analysts52.38
Price Target37.4 (-0.08%)
Short Float %6.66%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend0.54
Dividend Growth(5Y)10.9%
DP76.93%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.68%
Min EPS beat(2)-29.53%
Max EPS beat(2)-17.84%
EPS beat(4)0
Avg EPS beat(4)-27.29%
Min EPS beat(4)-49.74%
Max EPS beat(4)-12.05%
EPS beat(8)1
Avg EPS beat(8)-18.76%
EPS beat(12)3
Avg EPS beat(12)-12.69%
EPS beat(16)5
Avg EPS beat(16)-9.84%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-3.23%
Revenue beat(4)0
Avg Revenue beat(4)-3.46%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-1.77%
Revenue beat(8)0
Avg Revenue beat(8)-2.76%
Revenue beat(12)3
Avg Revenue beat(12)-1.32%
Revenue beat(16)3
Avg Revenue beat(16)-1.33%
PT rev (1m)0.55%
PT rev (3m)-2.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.86%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.04 | ||
| Fwd PE | 26.87 | ||
| P/S | 0.75 | ||
| P/FCF | N/A | ||
| P/OCF | 6.14 | ||
| P/B | 1.6 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)0.85
EY2.27%
EPS(NY)1.39
Fwd EY3.72%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)6.1
OCFY16.3%
SpS50.11
BVpS23.44
TBVpS20.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 3.17% | ||
| ROCE | 3.28% | ||
| ROIC | 2.49% | ||
| ROICexc | 2.54% | ||
| ROICexgc | 2.75% | ||
| OM | 2.93% | ||
| PM (TTM) | 1.48% | ||
| GM | 82.29% | ||
| FCFM | N/A |
ROA(3y)7.1%
ROA(5y)7.39%
ROE(3y)14.53%
ROE(5y)14.55%
ROIC(3y)7.87%
ROIC(5y)8.41%
ROICexc(3y)8.1%
ROICexc(5y)8.61%
ROICexgc(3y)8.71%
ROICexgc(5y)8.97%
ROCE(3y)10.38%
ROCE(5y)11.1%
ROICexcg growth 3Y-17.39%
ROICexcg growth 5Y-11.7%
ROICexc growth 3Y-19.59%
ROICexc growth 5Y-13.13%
OM growth 3Y-17.55%
OM growth 5Y-10.04%
PM growth 3Y-21.7%
PM growth 5Y-12.93%
GM growth 3Y-1.69%
GM growth 5Y-0.11%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 136.52% | ||
| Cap/Sales | 12.97% | ||
| Interest Coverage | 3.09 | ||
| Cash Conversion | 97.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.86 |
F-Score5
WACC7.88%
ROIC/WACC0.32
Cap/Depr(3y)173.24%
Cap/Depr(5y)169.05%
Cap/Sales(3y)15.74%
Cap/Sales(5y)16.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.4%
EPS 3Y-9.46%
EPS 5Y-4.1%
EPS Q2Q%-64.29%
EPS Next Y-64.2%
EPS Next 2Y-15.05%
EPS Next 3Y8.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.79%
Revenue growth 3Y11.45%
Revenue growth 5Y5.96%
Sales Q2Q%-8.81%
Revenue Next Year-7.47%
Revenue Next 2Y-1.88%
Revenue Next 3Y1.31%
Revenue Next 5YN/A
EBIT growth 1Y-60.01%
EBIT growth 3Y-8.11%
EBIT growth 5Y-4.68%
EBIT Next Year91.35%
EBIT Next 3Y40.53%
EBIT Next 5YN/A
FCF growth 1Y42.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.52%
OCF growth 3Y2.08%
OCF growth 5Y2.55%