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Schneider National Inc (SNDR)
NYSE:SNDR
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Schneider National
(NYSE:SNDR)
Rating:62Neutral
Price Target:
$26.00
▲(1.33%Upside)
Positive Factors
Cost Savings
SNDR targets $40 million in cost savings, emphasizing revenue per truck week over fleet size.
Earnings Performance
SNDR's 1Q EPS of $.16 beat recently lowered estimates and offset lower than expected revenue.
Growth Opportunities
Schneider remains focused on growing organically and is willing to leverage up to 2.0-2.5x EBITDA for growth opportunities.
Negative Factors
Freight Market Uncertainty
Tariff concerns have caused uncertainty in future freight market conditions.
Guidance Adjustment
SNDR lowered 2025 EPS guidance to $.75-$1.00, slightly below the previous estimate.
Market Conditions
Truck demand is currently weak, with national dry van volumes down 9.5% year-over-year.
Schneider National (SNDR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.50B
Dividend Yield1.48%
Average Volume (3M)738.77K
Price to Earnings (P/E)36.2
Beta (1Y)0.60
Revenue Growth-0.30%
EPS Growth-20.76%
CountryUS
Employees19,400
SectorIndustrials
Sector Strength86
IndustryTrucking
Share Statistics
EPS (TTM)0.16
Shares Outstanding92,169,400
10 Day Avg. Volume920,941
30 Day Avg. Volume738,769
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.47
Price to Sales (P/S)0.00
P/FCF Ratio25.57
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit9.22
Enterprise Value/Ebitda1.72
Forecast
1Y Price Target
$26.85Price Target Upside4.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Schneider National Business Overview & Revenue Model
Company DescriptionSchneider National, Inc. (SNDR) is a leading provider of transportation and logistics services in North America. The company operates through three main segments: Truckload, Intermodal, and Logistics. Schneider National offers a wide range of services including regional and long-haul truckload services, logistics management, freight brokerage, and supply chain solutions. With its extensive network and advanced technology, Schneider National delivers efficient and flexible transportation solutions to a diverse customer base across various industries.
How the Company Makes MoneySchneider 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 Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 19.85%|
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 Financial Statement Overview
Summary
Schneider National demonstrates a stable financial position with low leverage and strong equity backing. However, continued revenue decline and moderate profitability margins present challenges. The company shows efficient cash generation but faces fluctuations in free cash flow 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.65
Positive
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.70
Positive
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.37B | 5.29B | 5.50B | 6.60B | 5.61B | 4.55B |
| Gross Profit | 433.20M | 441.10M | 559.40M | 920.50M | 761.50M | 480.60M |
| EBITDA | 607.20M | 582.50M | 709.80M | 963.60M | 850.70M | 587.00M |
| Net Income | 124.60M | 117.00M | 238.50M | 457.80M | 405.40M | 211.70M |
Balance Sheet | ||||||
| Total Assets | 4.98B | 4.93B | 4.56B | 4.32B | 3.94B | 3.52B |
| Cash, Cash Equivalents and Short-Term Investments | 154.30M | 165.50M | 159.60M | 385.70M | 244.80M | 395.50M |
| Total Debt | 576.70M | 526.80M | 302.10M | 215.10M | 270.30M | 306.80M |
| Total Liabilities | 1.99B | 1.95B | 1.60B | 1.48B | 1.51B | 1.46B |
| Stockholders Equity | 2.99B | 2.99B | 2.96B | 2.84B | 2.42B | 2.06B |
Cash Flow | ||||||
| Free Cash Flow | 134.10M | 146.80M | -127.60M | 162.80M | 25.50M | 199.20M |
| Operating Cash Flow | 680.20M | 686.10M | 680.00M | 856.40M | 566.10M | 618.20M |
| Investing Cash Flow | -816.10M | -791.50M | -907.60M | -598.80M | -626.40M | -318.70M |
| Financing Cash Flow | 174.80M | 120.60M | -55.70M | -116.70M | -90.40M | -455.60M |
Schneider National Technical Analysis
Positive
25.66
Price Trends
23.59
Positive
23.92
Positive
26.58
Negative
Market Momentum
0.42
Negative
66.67
Neutral
87.11
Negative
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 25.66 is above the 20-day moving average (MA) of 24.31, above the 50-day MA of 23.59, and below the 200-day MA of 26.58, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥254.55B | 13.00 | 8.49% | 3.09% | 6.31% | 12.77% | |
69 Neutral | $1.90B | 10.97 | 14.25% | 0.58% | -5.69% | 51.78% | |
66 Neutral | $1.11B | 51.45 | 2.83% | 1.76% | -13.47% | -62.49% | |
62 Neutral | $4.50B | 36.24 | 4.20% | 1.48% | -0.30% | -20.76% | |
61 Neutral | $7.68B | 50.98 | 2.13% | 1.52% | 1.16% | 36.33% | |
61 Neutral | $1.80B | 102.07 | 1.21% | 1.93% | -7.66% | -78.26% | |
59 Neutral | $2.76B | ― | -27.75% | ― | 32.38% | -2221.75% |
* Industrials Sector Average
Performance Comparison
SNDR
Schneider National
25.66
2.55
11.03%
KNX
Knight Transportation
47.39
-1.27
-2.61%
MRTN
Marten Transport
13.65
-3.77
-21.64%
WERN
Werner Enterprises
29.07
-5.35
-15.54%
ARCB
ArcBest
83.03
-24.79
-22.99%
RXO
RXO, Inc.
16.82
-10.32
-38.03%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.