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Werner Enterprises (WERN)
NASDAQ:WERN
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Werner Enterprises
(NASDAQ:WERN)
54Neutral
Positive Factors
Cost Savings
WERN continues to make progress with cost savings, realizing $40M of savings YTD through Q324, and increased the 2024 savings target slightly.
Tech Rollout
Tech rollout driving revenue synergies with runway into '26.
Negative Factors
Q3 Performance
Shares likely trade lower tomorrow due to challenging Q3 results, sustained industry headwinds, and elevated non-core costs.
Werner Enterprises (WERN) vs. S&P 500 (SPY)
Market Cap
$1.89B
Dividend Yield1.83%
Average Volume (3M)815.46K
Price to Earnings (P/E)58.8
Beta (1Y)0.91
Revenue Growth-7.71%
EPS Growth-69.05%
CountryUS
Employees13,809
SectorIndustrials
Sector Strength69
IndustryTransportation
Share Statistics
EPS (TTM)0.55
Shares Outstanding61,872,208
10 Day Avg. Volume950,615
30 Day Avg. Volume815,461
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.62
Price to Cash Flow (P/CF)6.70
P/FCF Ratio6.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.62Price Target Upside22.68% Upside
Rating ConsensusHold
Number of Analyst Covering13
Werner Enterprises Business Overview & Revenue Model
Company DescriptionWerner Enterprises, Inc. engages in the provision of logistics services. It operates through the Truckload Transportation Services and Werner Logistics segments. The Truckload Transportation Services segment consists of one-way truckload and specialized services units such as the medium-to-long haul van fleet which provides a consumer non durable products and commodities in truckload quantities. The Werner Logistics segment provides non-trucking services to customers such as truck brokerages which uses contracted carriers to complete customer shipments. The company was founded by Clarence L. Werner in 1956 and is headquartered in Omaha, NE.
How the Company Makes MoneyWerner Enterprises generates revenue primarily through its core transportation and logistics services. The company's key revenue streams include dedicated services, where Werner provides customized transportation solutions for specific customers, and one-way truckload services, which involve moving freight for various customers on a per-load basis. Additionally, Werner earns income through its logistics segment, offering freight management, brokerage, and intermodal services that connect different modes of transportation. Significant partnerships with major retailers, manufacturers, and supply chain partners enhance Werner's market presence and contribute to its earnings. The company's investment in advanced technology and a strong fleet management system also play a crucial role in optimizing operations and maximizing profitability.
Werner Enterprises Financial Statement Overview
Summary
Werner Enterprises shows a stable financial position with strong equity and manageable debt levels. However, the company faces challenges with fluctuating net income and negative free cash flow, which need addressing to enhance financial flexibility.Income Statement
Werner Enterprises has seen fluctuating revenue with a slight decline in 2024 compared to 2023. The company's gross profit margin remains strong, though net profit margins have been inconsistent, reflecting challenges in cost management or market conditions. EBIT and EBITDA margins indicate operational efficiency, but with room for improvement. Overall, while the company maintains decent profitability, volatility in net income is a concern.65
Positive
Balance Sheet
The balance sheet shows a solid equity base, with a consistent equity ratio indicating stability. The debt-to-equity ratio has improved over the years, suggesting effective debt management and reducing leverage risk. Return on equity has been volatile, reflecting the fluctuations in net income, but the overall financial health remains stable.75
Positive
Cash Flow
The cash flow statement indicates challenges in generating free cash flow, with negative values in recent years due to high capital expenditures. However, operating cash flow remains strong compared to net income, suggesting robust cash-generating operations despite the negative free cash flow trend. The company needs to enhance its free cash flow to improve financial flexibility.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.03B | 3.28B | 3.29B | 2.73B | 2.37B | Gross Profit |
| 338.63M | 423.65M | 521.59M | 477.93M | 460.89M | EBIT |
| 66.15M | 176.42M | 44.50M | 42.42M | -34.38M | EBITDA |
| 372.10M | 480.82M | 616.54M | 517.92M | 479.45M | Net Income Common Stockholders |
| 34.23M | 112.38M | 241.26M | 259.05M | 169.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 40.75M | 61.72M | 107.24M | 54.20M | 29.33M | Total Assets |
| 3.05B | 3.16B | 3.10B | 2.59B | 2.16B | Total Debt |
| 20.00M | 648.75M | 693.75M | 427.50M | 200.00M | Net Debt |
| -20.75M | 587.03M | 586.51M | 373.30M | 170.67M | Total Liabilities |
| 1.56B | 1.59B | 1.61B | 1.23B | 961.64M | Stockholders Equity |
| 1.46B | 1.53B | 1.44B | 1.33B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| -84.06M | -124.42M | -58.54M | -38.03M | 32.84M | Operating Cash Flow |
| 329.73M | 474.37M | 448.71M | 332.82M | 445.91M | Investing Cash Flow |
| -241.45M | -434.94M | -514.33M | -397.30M | -263.27M | Financing Cash Flow |
| -105.72M | -87.07M | 118.03M | 89.67M | -185.96M |
Werner Enterprises Technical Analysis
Negative
29.85
Price Trends
34.73
Negative
36.70
Negative
36.60
Negative
Market Momentum
-1.20
Positive
26.22
Positive
22.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WERN, the sentiment is Negative. The current price of 29.85 is below the 20-day moving average (MA) of 32.76, below the 50-day MA of 34.73, and below the 200-day MA of 36.60, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 26.22 is Positive, neither overbought nor oversold. The STOCH value of 22.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WERN.
Werner Enterprises Risk Analysis
Werner Enterprises disclosed 20 risk factors in its most recent earnings report. Werner Enterprises reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Werner Enterprises Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $35.50B | 30.49 | 27.90% | 0.62% | -0.88% | -2.79% | |
67 Neutral | $5.37B | 27.59 | 20.03% | 0.93% | -9.13% | -25.11% | |
65 Neutral | $15.42B | 27.75 | 14.06% | 1.12% | -5.79% | -20.32% | |
62 Neutral | $7.51B | 63.92 | 1.66% | 1.38% | 3.76% | -46.10% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
56 Neutral | $1.14B | 43.43 | 3.53% | 1.67% | -14.83% | -61.80% | |
54 Neutral | $1.89B | 58.83 | 2.29% | 1.83% | -7.71% | -69.05% |
* Industrials Sector Average
Performance Comparison
WERN
Werner Enterprises
29.85
-7.57
-20.23%
JBHT
JB Hunt
154.45
-41.80
-21.30%
KNX
Knight Transportation
46.71
-7.22
-13.39%
LSTR
Landstar System
150.75
-29.17
-16.21%
MRTN
Marten Transport
13.91
-4.51
-24.48%
ODFL
Old Dominion Freight
164.54
-47.54
-22.42%
Werner Enterprises Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -13.85% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant improvements in production metrics, safety, and logistics performance, the company faced challenges with declining revenues, high insurance costs, and a soft used equipment market. The cost savings initiatives showed promise for future improvements.Highlights
Improved Production Metrics
One-way miles per truck increased 8% year over year, and revenue per truck per week increased by 5.1% in the quarter and 6.4% for the year.
Safety Achievements
Achieved near a twenty-year record low in DOT preventable accidents per million miles due to continued safety investments.
Logistics Division Performance
Logistics adjusted operating income improved sequentially, representing the best quarter of the year. Intermodal revenues increased by 2% year over year.
Cost Savings Program
Achieved over $50 million of in-year savings in 2024, with a plan for $25 million in incremental savings in 2025.
Dedicated Segment Resilience
Dedicated revenue per truck per week increased year over year, with a customer retention rate over 90%.
Lowlights
Revenue and Earnings Decline
Fourth-quarter revenues were down 8% versus the prior year, with adjusted EPS down $0.31 and adjusted operating margin down 320 basis points.
High Insurance Costs
Incurred higher than normal insurance expenses, including a $19 million unfavourable development on prior period claims, impacting adjusted EPS by $0.22.
Truckload Transport Services (TTS) Segment Challenges
TTS total revenue was down 9%, and TTS adjusted operating income was 61% lower versus the prior year.
Soft Used Equipment Market
Continued softness in the used equipment market led to lower gains, affecting overall margins.
Company Guidance
During Werner Enterprises' fourth quarter 2024 earnings call, the company reported a challenging year marked by an 8% decrease in revenues compared to the previous year, totaling $755 million for the quarter. Adjusted EPS was $0.08, and the adjusted operating margin stood at 1.6%. The company faced a $19 million insurance expense, impacting EPS by $0.22. Despite these challenges, Werner saw improvements in operational metrics, such as an 8% increase in one-way miles per truck year-over-year, and a 5.1% increase in revenue per truck per week in the one-way truckload segment. The logistics division showed sequential improvement in adjusted operating income, while the dedicated segment maintained strong customer retention rates over 90%. Looking ahead, Werner anticipates a gradually improving trucking market in 2025, with full-year fleet growth guidance of 1% to 5% and net CapEx between $185 million and $235 million. The company aims to achieve incremental cost savings of $25 million in 2025 while focusing on expanding core business areas and enhancing operational efficiencies.Werner Enterprises Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Werner Enterprises Revises Executive Compensation Plans
Neutral
Feb 19, 2025
On February 13, 2025, Werner Enterprises’ Compensation Committee approved new compensation arrangements for its executive officers, including base salaries, and awards of restricted and performance stock. These arrangements, under the 2023 Long-Term Incentive Plan, include specific vesting conditions tied to the company’s performance metrics over a three-year period. The announcement reflects Werner Enterprises’ strategic focus on aligning executive incentives with company performance goals, impacting potential earnings and stakeholder returns.
Business Operations and Strategy
Werner Enterprises to Attend Key Investment Conferences
Positive
Jan 21, 2025
On January 21, 2025, Werner Enterprises announced its participation in three major investment conferences in February 2025, including the Stifel, Citi, and Barclays conferences in Miami. These events present an opportunity for the company to engage with investors and showcase its strategic initiatives, potentially strengthening its industry position and stakeholder relations.
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.