Schneider National (SNDR) AI Stock Analysis

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Schneider National

(NYSE:SNDR)

64Neutral

Schneider National's strengths lie in its financial stability, cost management, and robust cash flow generation. The recent earnings call provided a positive outlook with strong revenue growth and cost reductions. However, technical indicators suggest a bearish trend, and the stock's high P/E ratio indicates overvaluation risks. Overall, while the company shows solid operational performance, market conditions and valuation concerns weigh on the stock.

Positive Factors

Acquisitions

Despite some challenges, the Cowan acquisition is going well, contributing positively to the company's operations.

Earnings

SNDR's 1Q EPS of $0.16 beat our recently lowered $0.13 EPS estimate on better operating profit in all three segments that offset lower revenue than expected.

Operational Efficiency

SNDR continues to contain costs and has targeted an additional $40m of cost saves across the enterprise, although most of it is to offset inflation.

Negative Factors

Demand

Truck demand is currently weak, with national dry van volumes down 9.5% year-over-year.

Logistics Outlook

The Logistics outlook is lowered due to a decrease in demand, affecting operating ratios.

Market Conditions

The March seasonal build has been lower than normal, and tariff concerns have caused uncertainty in future freight market conditions.

Schneider National (SNDR) vs. S&P 500 (SPY)

Market Cap

$3.84B

Dividend Yield1.77%

Average Volume (3M)825.52K

Price to Earnings (P/E)32.9

Beta (1Y)0.52

Revenue Growth-0.30%

EPS Growth-20.76%

CountryUS

Employees19,400

SectorIndustrials

Sector Strength78

IndustryTrucking

Share Statistics

EPS (TTM)0.66

Shares Outstanding92,458,180

10 Day Avg. Volume798,592

30 Day Avg. Volume825,520

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.46

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit12.71

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$25.92

Price Target Upside13.98% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Schneider National Business Overview & Revenue Model

Company DescriptionSchneider National, Inc., together with its subsidiaries, provides surface transportation and logistics solutions in the United States, Canada, and Mexico. The company operates through three segments: Truckload, Intermodal, and Logistics. The Truckload segment offers standard long-haul and regional shipping services primarily through dry van, bulk, temperature-controlled, and flat-bed equipment, as well as cross dock and customized solutions for time-sensitive loads. The Intermodal segment provides door-to-door container on flat car services, including rail and dray transportation through company-owned containers, chassis, and trucks. The Logistics segment offers freight brokerage, supply chain, and import/export services; value-added services to manage and move its customers' freight; and transloading and warehousing services. It also leases equipment, such as trucks to owner-operators; and provides insurance for the company drivers and owner-operators. Schneider National, Inc. was founded in 1935 and is headquartered in Green Bay, Wisconsin.

How the Company Makes MoneySchneider National makes money primarily through its three main service offerings: Truckload, Intermodal, and Logistics. The Truckload segment generates revenue by providing standard, dedicated, and expedited truckload services. The Intermodal segment earns income by offering transportation solutions that combine rail and truck services, providing cost-effective and environmentally friendly options for long-haul freight. The Logistics segment includes brokerage, supply chain management, and warehousing services, allowing Schneider to earn fees by managing and optimizing transportation and supply chain operations for its clients. Additionally, Schneider National benefits from strategic partnerships with rail operators and other logistics companies, enhancing its service offerings and expanding its customer base. The company also leverages its investments in technology and data analytics to improve operational efficiency and customer service, further contributing to its revenue growth.

Schneider National Financial Statement Overview

Summary

Schneider National demonstrates financial stability with a strong balance sheet and solid cash flow generation. Although profitability margins have compressed, the company effectively manages costs and maintains a healthy equity position. The main challenges include revenue growth and improving return on equity.

Income Statement

Neutral

Schneider National has experienced fluctuating revenue trends, with a notable decrease from 2022 to 2024. The gross profit margin stands at approximately 35.7% for 2024, showing effective cost management. However, the net profit margin has decreased to 2.2%, indicating pressure on profitability. The EBIT and EBITDA margins are 3.1% and 11.0%, respectively, reflecting moderate operating performance.

Balance Sheet

Positive

The company maintains a solid equity position with an equity ratio of 60.5% in 2024, indicating financial stability. The debt-to-equity ratio is relatively low at 0.18, suggesting prudent leverage use. However, return on equity has decreased to 3.9%, which may concern investors seeking higher returns.

Cash Flow

Positive

Operating cash flow remains strong, with a positive trajectory, reaching $686.1 million in 2024. The free cash flow to net income ratio is robust, indicating efficient cash generation. However, the free cash flow growth rate is affected by significant capital expenditures, which could constrain cash flow flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.29B	5.50B	6.60B	5.61B	4.55B
	Gross Profit
441.10M	559.40M	920.50M	761.50M	480.60M
	EBIT
165.20M	296.40M	263.60M	268.90M	7.00M
	EBITDA
582.50M	709.80M	963.60M	850.70M	587.00M
	Net Income Common Stockholders
117.00M	238.50M	457.80M	405.40M	211.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
165.50M	159.60M	385.70M	244.80M	395.50M
	Total Assets
4.93B	4.56B	4.32B	3.94B	3.52B
	Total Debt
526.80M	302.10M	215.10M	270.30M	306.80M
	Net Debt
409.20M	199.70M	-170.60M	25.50M	-88.70M
	Total Liabilities
1.95B	1.60B	1.48B	1.51B	1.46B
	Stockholders Equity
2.99B	2.96B	2.84B	2.42B	2.06B
Cash Flow		Free Cash Flow
686.10M	-127.60M	162.80M	25.50M	199.20M
	Operating Cash Flow
686.10M	680.00M	856.40M	566.10M	618.20M
	Investing Cash Flow
-791.50M	-907.60M	-598.80M	-626.40M	-318.70M
	Financing Cash Flow
120.60M	-55.70M	-116.70M	-90.40M	-455.60M

Schneider National Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price22.74

Price Trends

50DMA

23.47

Negative

100DMA

26.42

Negative

200DMA

27.18

Negative

Market Momentum

MACD

-0.40

Negative

RSI

51.25

Neutral

STOCH

52.75

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDR, the sentiment is Neutral. The current price of 22.74 is above the 20-day moving average (MA) of 22.11, below the 50-day MA of 23.47, and below the 200-day MA of 27.18, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 52.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNDR.

Schneider National Risk Analysis

Schneider National disclosed 31 risk factors in its most recent earnings report. Schneider National reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Schneider National Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	68 Neutral	$1.44B	8.20	14.25%	0.83%	-5.69%	51.78%
KNX	64 Neutral	$6.46B	54.98	2.13%	1.68%	1.16%	36.33%
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%
SNDR	64 Neutral	$3.84B	32.90	4.20%	1.77%	-0.30%	-20.76%
MRTN	57 Neutral	$1.04B	48.49	2.83%	1.89%	-13.47%	-62.49%
WERN	50 Neutral	$1.61B	91.34	1.21%	2.25%	-7.66%	―
RXO	47 Neutral	$2.31B	―	-25.84%	―	15.86%	-6302.63%

* Industrials Sector Average

Performance Comparison

SNDR

Schneider National

22.74

1.04

4.79%

KNX

Knight Transportation

41.45

-5.01

-10.78%

MRTN

Marten Transport

13.08

-4.10

-23.86%

WERN

Werner Enterprises

26.06

-9.65

-27.02%

ARCB

ArcBest

62.01

-52.32

-45.76%

RXO

RXO, Inc.

14.76

-5.65

-27.68%

Schneider National Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 5.82%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Positive

Schneider's earnings call highlighted significant improvements in earnings across Truckload, Intermodal, and Logistics segments, coupled with strong revenue growth and cost reduction initiatives. However, the company also faces volume and pricing challenges, economic uncertainty, and difficulties in expanding its Truckload network due to owner-operator exits. Despite these challenges, the improvements in earnings and revenue indicate a positive outlook.

Q1-2025 Updates

Positive Updates

Truckload Earnings Improvement

Truckload earnings improved nearly 70% year-over-year and 27% sequentially from the fourth quarter of 2024.

Intermodal Segment Performance

Intermodal nearly doubled earnings compared to a year ago on 4% order growth, driven by increasing shipping activity in the west of Mexico.

Logistics Earnings Growth

Logistics improved earnings 50% year-over-year, as digital technology allowed adaptability to market dynamics.

Revenue Growth

Enterprise revenues excluding fuel surcharge were $1.26 billion, up 8% compared to a year ago.

Cost Reduction Initiatives

Targets of more than $40 million of additional cost reductions across the enterprise through AI-based digital assistant technologies.

Negative Updates

Volume and Pricing Challenges

Truck network pricing seeing low to mid-single-digit percentage increases but facing volume challenges due to competitive pressures. Intermodal rates remained largely flat year-over-year.

Dedicated Truck Growth Moderation

Net truck growth in dedicated projected to be lower than expected due to churn and asset efficiency actions.

Economic Uncertainty Impact

Forward sentiment for customer freight demand and consumer health less clear, particularly as tariff-driven uncertainty builds.

Owner-Operator Exit from Industry

Shift to a more variable cost model in Truckload network taking longer due to operating and financial conditions prompting more owner-operators to exit the industry.

Company Guidance

During the Schneider first quarter 2025 earnings call, the company provided several key metrics and guidance for the fiscal year. Schneider is projecting 2025 earnings per share to be in the range of $0.75 to $1, with net capital expenditures revised down to $325 million to $375 million from an earlier estimate of $400 million to $450 million. The first quarter saw enterprise revenues, excluding fuel surcharge, reach $1.26 billion, up 8% year-over-year, with adjusted income from operations at $44 million, representing a 47% increase. The Truckload segment experienced a 14% revenue increase, primarily due to the acquisition of Cowan Systems, and an operating income rise of nearly 70% year-over-year. Intermodal revenues grew 5% with a 97% increase in operating income, while Logistics revenues increased 2%, with operating income up by 50%. The company is also targeting cost reductions exceeding $40 million enterprise-wide, focusing on digital and AI-driven efficiencies to enhance productivity and financial performance.

Schneider National Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy

Schneider National Expands with Cowan Systems Acquisition

Positive

Nov 25, 2024

Schneider National, Inc. is set to enhance its market presence with the acquisition of Cowan Systems, LLC for approximately $390 million, alongside additional real estate assets for $31 million. This strategic move will expand Schneider’s dedicated truckload fleet, integrating Cowan Systems’ 1,800 trucks and 7,500 trailers, and is expected to boost earnings per share within the first year. The acquisition, funded by a new $400 million credit facility and existing cash, aligns with Schneider’s customer-centric vision and promises to enhance value for stakeholders.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.