WERNER ENTERPRISES INC (WERN) Stock Fundamental Analysis
NASDAQ:WERN - Nasdaq - US9507551086 - Common Stock - Currency: USD
Taking everything into account, WERN scores 4 out of 10 in our fundamental rating. WERN was compared to 41 industry peers in the Ground Transportation industry. WERN has only an average score on both its financial health and profitability. WERN is not valued too expensively and it also shows 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.
In the past 5 years WERN has always been profitable.
Each year in the past 5 years WERN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WERN (1.12%) is comparable to the rest of the industry.
WERN has a Return On Equity (2.35%) which is comparable to the rest of the industry.
WERN has a Return On Invested Capital of 1.90%. This is comparable to the rest of the industry: WERN outperforms 43.90% of its industry peers.
WERN had an Average Return On Invested Capital over the past 3 years of 5.24%. This is below the industry average of 8.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.35% | ||
| ROIC | 1.9% |
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
WERN has a Profit Margin of 1.13%. This is comparable to the rest of the industry: WERN outperforms 43.90% of its industry peers.
In the last couple of years the Profit Margin of WERN has declined.
WERN has a Operating Margin (2.18%) which is in line with its industry peers.
In the last couple of years the Operating Margin of WERN has declined.
WERN has a better Gross Margin (82.79%) than 92.68% 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 | 2.18% | ||
| PM (TTM) | 1.13% | ||
| GM | 82.79% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WERN 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
WERN has an Altman-Z score of 2.61. 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 2.61. This is in the better half of the industry: WERN outperforms 65.85% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that WERN is not too dependend on debt financing.
WERN has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.61 |
ROIC/WACC0.22
WACC8.75%
2.3 Liquidity
WERN has a Current Ratio of 1.52. 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 (1.52) than 82.93% of its industry peers.
A Quick Ratio of 1.48 indicates that WERN should not have too much problems paying its short term obligations.
The Quick ratio of WERN (1.48) is better than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
WERN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -80.95%.
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.
WERN shows a decrease in Revenue. In the last year, the revenue decreased by -7.71%.
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)-80.95%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-185.71%
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-7.41%
3.2 Future
The Earnings Per Share is expected to grow by 69.70% on average over the next years. This is a very strong growth
WERN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.66% yearly.
EPS Next Y94.23%
EPS Next 2Y88.51%
EPS Next 3Y69.7%
EPS Next 5YN/A
Revenue Next Year1.48%
Revenue Next 2Y4.22%
Revenue Next 3Y4.66%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 88.14, WERN can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WERN.
When comparing the Price/Earnings ratio of WERN to the average of the S&P500 Index (28.88), we can say WERN is valued expensively.
A Price/Forward Earnings ratio of 12.86 indicates a correct valuation of WERN.
Based on the Price/Forward Earnings ratio, WERN is valued a bit cheaper than 78.05% of the companies in the same industry.
WERN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.14 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
WERN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WERN is cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.99 |
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 69.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y88.51%
EPS Next 3Y69.7%
5. Dividend
5.1 Amount
WERN has a Yearly Dividend Yield of 2.02%. Purely for dividend investing, there may be better candidates out there.
The stock price of WERN dropped by -31.69% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.69, WERN pays a better dividend. On top of this WERN pays more dividend than 85.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, WERN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of WERN decreases each year by -32.85%.
WERN has paid a dividend for at least 10 years, which is a reliable track record.
WERN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-32.85%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
102.43% of the earnings are spent on dividend by WERN. This is not a sustainable payout ratio.
DP102.43%
EPS Next 2Y88.51%
EPS Next 3Y69.7%
NASDAQ:WERN (5/1/2025, 11:58:09 AM)
24.68
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners100.33%
Inst Owner Change0.31%
Ins Owners1.26%
Ins Owner Change0.59%
Market Cap1.53B
Analysts53.64
Price Target33.11 (34.16%)
Short Float %5.45%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend0.56
Dividend Growth(5Y)-32.85%
DP102.43%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-46.6%
Min EPS beat(2)-63.67%
Max EPS beat(2)-29.53%
EPS beat(4)0
Avg EPS beat(4)-40.19%
Min EPS beat(4)-63.67%
Max EPS beat(4)-17.84%
EPS beat(8)0
Avg EPS beat(8)-27.42%
EPS beat(12)2
Avg EPS beat(12)-19.27%
EPS beat(16)4
Avg EPS beat(16)-14.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-4.46%
Max Revenue beat(2)-3.15%
Revenue beat(4)0
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-3.15%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)3
Avg Revenue beat(16)-1.45%
PT rev (1m)-12.27%
PT rev (3m)-11.47%
EPS NQ rev (1m)-14.49%
EPS NQ rev (3m)-34.95%
EPS NY rev (1m)-12.8%
EPS NY rev (3m)-24.7%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.9%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.14 | ||
| Fwd PE | 12.86 | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | 4.63 | ||
| P/B | 1.05 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)0.28
EY1.13%
EPS(NY)1.92
Fwd EY7.78%
FCF(TTM)-1.36
FCFYN/A
OCF(TTM)5.33
OCFY21.58%
SpS48.94
BVpS23.51
TBVpS20.19
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.35% | ||
| ROCE | 2.45% | ||
| ROIC | 1.9% | ||
| ROICexc | 1.93% | ||
| ROICexgc | 2.09% | ||
| OM | 2.18% | ||
| PM (TTM) | 1.13% | ||
| GM | 82.79% | ||
| 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 | 0.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 142.49% | ||
| Cap/Sales | 13.66% | ||
| Interest Coverage | 1.65 | ||
| Cash Conversion | 92.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 2.61 |
F-Score5
WACC8.75%
ROIC/WACC0.22
Cap/Depr(3y)174.55%
Cap/Depr(5y)163.82%
Cap/Sales(3y)15.77%
Cap/Sales(5y)15.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-80.95%
EPS 3Y-46.16%
EPS 5Y-25.73%
EPS Q2Q%-185.71%
EPS Next Y94.23%
EPS Next 2Y88.51%
EPS Next 3Y69.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.71%
Revenue growth 3Y3.48%
Revenue growth 5Y4.23%
Sales Q2Q%-7.41%
Revenue Next Year1.48%
Revenue Next 2Y4.22%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y-62.51%
EBIT growth 3Y-40.29%
EBIT growth 5Y-21.75%
EBIT Next Year369.03%
EBIT Next 3Y87.42%
EBIT Next 5YN/A
FCF growth 1Y32.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-30.49%
OCF growth 3Y-0.31%
OCF growth 5Y-5.02%