Schneider National (SNDR) AI Stock Analysis

• Market Cap: $4.55B
• Dividend Yield: 1.46%
• Average Volume (3M): 786.72K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.58
• Revenue Growth: -0.30%
• EPS Growth: -20.76%
• Country: US
• Employees: 19,400
• Sector: Industrials
• Sector Strength: 93
• Industry: Trucking
• EPS (TTM): 0.16
• Shares Outstanding: 92,169,400
• 10 Day Avg. Volume: 929,858
• 30 Day Avg. Volume: 786,724
• PEG Ratio: 5.95
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 11.23
• Enterprise Value/Ebitda: 2.10
• 1Y Price Target: $26.18
• Price Target Upside: 0.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: $29.00 ▲(11.41%Upside)

Schneider National's stock reflects a stable but challenging financial position with positive earnings growth offset by valuation concerns and technical overbought signals. Strong operational improvements and cost reductions support a positive outlook, but economic uncertainties and competitive pressures remain significant risks.

Positive Factors

Cost Management

Schneider has established targets of over $40 million in cost reductions through AI-based assistant technologies and digital employee models, and is on-track to meet and potentially exceed its target.

Earnings

SNDR’s 1Q EPS of $.16 beat the recently lowered $.13 EPS estimate on better operating profit in all three segments, offsetting lower revenue than expected.

Partnerships

The new partnership with UNP and CPKC is expected to eventually lead to better intermodal pricing for SNDR.

Negative Factors

Demand and Pricing

Demand remains sub-seasonal, and overall transport pricing, while positive, has been tepid.

Guidance and Churn

Lowered guidance was within consensus estimate ranges, but expectations were lowered due to increased churn and the removal of tractors to increase asset efficiency.

Volume and Capacity

The Truckload Network segment is expected to have more moderate pricing improvements as well as lower volumes and capacity growth than originally anticipated.

Schneider National Business Overview & Revenue Model

Company Description

Schneider 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 Money

Schneider National generates revenue primarily through its three main segments: Truckload, Intermodal, and Logistics. The Truckload segment provides standard and specialized truckload shipping services, earning income from transporting goods over land through its fleet of company-owned and owner-operated trucks. The Intermodal segment combines truck and rail transportation, generating revenue by providing cost-effective and environmentally friendly transport solutions. The Logistics segment offers comprehensive supply chain management services, including freight brokerage, supply chain consulting, and dedicated services, earning revenue through service fees and commissions. Key revenue streams include freight charges, brokerage fees, and logistics consulting fees. Schneider National's earnings are supported by its strong customer relationships, investments in technology, and strategic partnerships with railroads and other transportation providers.

Schneider National Financial Statement Overview

Summary

Schneider National shows stable financial health with low leverage and strong equity but faces challenges in profitability and revenue decline. Efficient cash generation is offset by free cash flow volatility due to capital expenditures.

Income Statement

Schneider National's income statement shows mixed performance. The gross profit margin for the TTM is approximately 15.5%, and the net profit margin is around 2.32%. There has been slight revenue growth in the TTM compared to the previous year, but revenue has been decreasing over the past several years. EBIT and EBITDA margins are modest at 3.32% and 11.29%, respectively. The company faces challenges in improving its profitability margins.

Balance Sheet

The balance sheet is relatively stable, with a debt-to-equity ratio of 0.11, indicating low leverage. Return on equity (ROE) is modest at 2.5%, reflecting limited profitability. The equity ratio is strong at nearly 100%, showing a solid capital structure with ample equity backing total assets. The company maintains a conservative financial position with limited financial risk.

Cash Flow

The cash flow statement highlights a strong operating cash flow to net income ratio of 5.46, suggesting efficient cash generation relative to profits. However, free cash flow has shown volatility, with a significant growth rate of 89.3% in the TTM compared to the previous year. The free cash flow to net income ratio is 2.23, indicating healthy cash conversion, but the cash reserves have been utilized for capital expenditures, impacting free cash flow consistency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	582.50M	709.80M	963.60M	850.70M	587.00M
Net Income	117.00M	238.50M	457.80M	405.40M	211.70M
Balance Sheet
Total Assets	4.93B	4.56B	4.32B	3.94B	3.52B
Cash, Cash Equivalents and Short-Term Investments	165.50M	159.60M	385.70M	244.80M	395.50M
Total Debt	526.80M	302.10M	215.10M	270.30M	306.80M
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	146.80M	-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: Positive
• Last Price: 26.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDR, the sentiment is Positive. The current price of 26.03 is above the 20-day moving average (MA) of 25.56, above the 50-day MA of 24.55, and below the 200-day MA of 26.43, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNDR.

Schneider National Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	79 Outperform	$1.93B	11.12	14.25%	0.56%	-5.69%	51.78%
KNX	68 Neutral	$7.38B	44.91	2.33%	1.52%	-2.54%	144.49%
SNDR	66 Neutral	$4.55B	36.55	4.20%	1.46%	-0.30%	-20.76%
WERN	61 Neutral	$1.78B	100.53	1.21%	1.91%	-7.66%	-78.26%
MRTN	58 Neutral	$1.06B	50.62	2.72%	1.84%	-11.77%	-52.06%
Sector *	58 Neutral	HK$14.94B	4.73	-2.78%	5.01%	3.80%	-54.55%
RXO	53 Neutral	$2.79B	―	-27.75%	―	32.38%	-2221.75%

Schneider National Corporate Events

Schneider National Expands with Cowan Systems Acquisition

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.