WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - Nasdaq - US9507551086 - Common Stock - Currency: USD
Overall WERN gets a fundamental rating of 4 out of 10. We evaluated WERN against 39 industry peers in the Ground Transportation industry. WERN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WERN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WERN had positive earnings in the past year.
WERN had a positive operating cash flow in the past year.
WERN had positive earnings in each of the past 5 years.
WERN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.47%, WERN is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
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 Return On Invested Capital of 2.54%. This is in the lower half of the industry: WERN underperforms 60.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WERN is below the industry average of 7.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 3.17% | ||
| ROIC | 2.54% |
ROA(3y)4.16%
ROA(5y)6.05%
ROE(3y)8.81%
ROE(5y)12.02%
ROIC(3y)5.24%
ROIC(5y)7.08%
1.3 Margins
Looking at the Profit Margin, with a value of 1.48%, WERN is doing worse than 68.42% of the companies in the same industry.
WERN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.93%, WERN is doing worse than 63.16% of the companies in the same industry.
In the last couple of years the Operating Margin of WERN has declined.
WERN has a better Gross Margin (82.29%) than 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-42.3%
OM growth 5Y-24.92%
PM growth 3Y-50.78%
PM growth 5Y-30.11%
GM growth 3Y-0.26%
GM growth 5Y-0.05%
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 less shares outstanding
WERN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WERN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that WERN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WERN (2.79) is better than 65.79% 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 of 0.48. This is comparable to the rest of the industry: WERN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.79 |
ROIC/WACC0.29
WACC8.77%
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.
The Current ratio of WERN (1.53) is better 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.
The Quick ratio of WERN (1.49) is better than 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 -72.02% in the last year.
Measured over the past years, WERN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.73% on average per year.
The Revenue has decreased by -7.71% in the past year.
Measured over the past years, WERN shows a small growth in Revenue. The Revenue has been growing by 4.23% on average per year.
EPS 1Y (TTM)-72.02%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-79.49%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-8.18%
3.2 Future
Based on estimates for the next years, WERN will show a very strong growth in Earnings Per Share. The EPS will grow by 80.49% on average per year.
Based on estimates for the next years, WERN will show a small growth in Revenue. The Revenue will grow by 6.96% on average per year.
EPS Next Y122.97%
EPS Next 2Y100.61%
EPS Next 3Y80.49%
EPS Next 5YN/A
Revenue Next Year3.94%
Revenue Next 2Y5.79%
Revenue Next 3Y6.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 62.41, WERN can be considered very expensive at the moment.
68.42% of the companies in the same industry are cheaper than WERN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, WERN is valued quite expensively.
The Price/Forward Earnings ratio is 27.99, which means the current valuation is very expensive for WERN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WERN is on the same level as its industry peers.
WERN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.41 | ||
| Fwd PE | 27.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WERN is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WERN's earnings are expected to grow with 80.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y100.61%
EPS Next 3Y80.49%
5. Dividend
5.1 Amount
WERN has a Yearly Dividend Yield of 1.63%.
Compared to an average industry Dividend Yield of 1.35, 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 2.29, WERN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of WERN grows each year by 10.90%, which is quite nice.
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
WERN pays out 76.93% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WERN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.93%
EPS Next 2Y100.61%
EPS Next 3Y80.49%
33.7
-0.37 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners96.13%
Inst Owner Change4.52%
Ins Owners1.23%
Ins Owner Change0.11%
Market Cap2.08B
Analysts53.33
Price Target38.56 (14.42%)
Short Float %6.94%
Short Ratio6.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)3.09%
PT rev (3m)2.36%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)-13.56%
EPS NY rev (3m)-15.42%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.41 | ||
| Fwd PE | 27.99 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | 5.53 | ||
| P/B | 1.44 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)0.54
EY1.6%
EPS(NY)1.2
Fwd EY3.57%
FCF(TTM)-0.4
FCFYN/A
OCF(TTM)6.1
OCFY18.09%
SpS50.08
BVpS23.42
TBVpS20.06
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 3.17% | ||
| ROCE | 3.28% | ||
| ROIC | 2.54% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 2.81% | ||
| OM | 2.93% | ||
| PM (TTM) | 1.48% | ||
| GM | 82.29% | ||
| FCFM | N/A |
ROA(3y)4.16%
ROA(5y)6.05%
ROE(3y)8.81%
ROE(5y)12.02%
ROIC(3y)5.24%
ROIC(5y)7.08%
ROICexc(3y)5.41%
ROICexc(5y)7.26%
ROICexgc(3y)5.87%
ROICexgc(5y)7.66%
ROCE(3y)6.76%
ROCE(5y)9.13%
ROICexcg growth 3Y-42.83%
ROICexcg growth 5Y-26.36%
ROICexc growth 3Y-43.24%
ROICexc growth 5Y-27.54%
OM growth 3Y-42.3%
OM growth 5Y-24.92%
PM growth 3Y-50.78%
PM growth 5Y-30.11%
GM growth 3Y-0.26%
GM growth 5Y-0.05%
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 | 2.79 |
F-Score5
WACC8.77%
ROIC/WACC0.29
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-72.02%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-79.49%
EPS Next Y122.97%
EPS Next 2Y100.61%
EPS Next 3Y80.49%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-8.18%
Revenue Next Year3.94%
Revenue Next 2Y5.79%
Revenue Next 3Y6.96%
Revenue Next 5YN/A
EBIT growth 1Y-60.01%
EBIT growth 3Y-40.29%
EBIT growth 5Y-21.75%
EBIT Next Year394.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y86.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-20.11%
OCF growth 3YN/A
OCF growth 5YN/A