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Werner Enterprises (WERN)
NASDAQ:WERN
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Werner Enterprises
(NASDAQ:WERN)
Rating:50Neutral
Price Target:―
Positive Factors
Fleet and Business Strategy
Werner Enterprises is targeting fleet growth and pursuing new Dedicated verticals to drive momentum.
New Contracts
WERN won important new contracts for its Dedicated business, which should be accretive over the medium term.
Tech and Revenue Synergies
Tech rollout driving revenue synergies with runway into '26.
Negative Factors
Financial Performance
WERN posted an adjusted 1Q25 loss per share of $0.12, coming in substantially below the average Street forecast.
Market Challenges
The underlying fundamentals of the Truckload and Logistics businesses remain soft, and WERN’s defensive operating strategy has not shielded it from market challenges.
Operational Challenges
Elevated insurance costs, extreme weather, and accelerated IT spend all coupled with operational inefficiencies to drive the large miss.
Werner Enterprises (WERN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.62B
Dividend Yield2.13%
Average Volume (3M)1.13M
Price to Earnings (P/E)91.9
Beta (1Y)0.75
Revenue Growth-7.66%
EPS Growth-78.26%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength90
IndustryTrucking
Share Statistics
EPS (TTM)-0.12
Shares Outstanding61,751,915
10 Day Avg. Volume953,414
30 Day Avg. Volume1,125,185
Financial Highlights & Ratios
PEG Ratio-1.92
Price to Book (P/B)1.13
Price to Sales (P/S)0.00
P/FCF Ratio-14.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.31Price Target Upside8.22% Upside
Rating ConsensusHold
Number of Analyst Covering13
Werner Enterprises Business Overview & Revenue Model
Company DescriptionWerner Enterprises, Inc. (WERN) is a leading transportation and logistics company headquartered in Omaha, Nebraska. The company specializes in providing truckload transportation services across North America, offering both dedicated and one-way truckload services. Werner Enterprises is recognized for its comprehensive logistics offerings, which include freight management, intermodal, and final mile services. With a focus on safety, technology, and customer service, Werner serves a diverse range of industries, ensuring efficient and reliable transportation solutions.
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 exhibits stability in its capital structure with a conservative leverage profile. However, profitability is under pressure with declining profit margins and negative free cash flow, which impacts overall financial health. Improvements in cost management and cash flow efficiency are recommended.Income Statement
Werner Enterprises shows moderate performance with consistent revenue generation, but recent periods indicate challenges in maintaining profit margins. The TTM shows a Gross Profit Margin of 11.04% and a Net Profit Margin of 0.60%, reflecting pressure on profitability. Revenue growth has been inconsistent, with a decline from 2023 to 2024. The EBIT and EBITDA margins have also been under strain, suggesting cost management issues.62
Positive
Balance Sheet
The company maintains a stable balance sheet with a Debt-to-Equity Ratio of 0.45 in TTM, indicating a conservative approach to leverage. The Return on Equity is relatively low at 1.24% in TTM, reflecting limited efficiency in generating returns. However, the Equity Ratio of 48.10% suggests a solid capital structure with a significant equity base supporting its assets.70
Positive
Cash Flow
Cash flow management presents challenges, as indicated by negative Free Cash Flow in TTM, at -$114.42 million. The Operating Cash Flow to Net Income Ratio of 13.53 in TTM shows robust cash generation relative to net income, yet Free Cash Flow growth and net income alignment are areas for improvement. The company must address capital expenditure levels to enhance cash flow stability.55
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.97B | 3.03B | 3.28B | 3.29B | 2.73B | 2.37B | Gross Profit |
| 328.23M | 338.63M | 423.65M | 521.59M | 477.93M | 460.89M | EBIT |
| 44.73M | 66.15M | 176.42M | 44.50M | 42.42M | -34.38M | EBITDA |
| 349.10M | 372.10M | 480.82M | 616.54M | 517.92M | 479.45M | Net Income Common Stockholders |
| 17.82M | 34.23M | 112.38M | 241.26M | 259.05M | 169.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 51.95M | 40.75M | 61.72M | 107.24M | 54.20M | 29.33M | Total Assets |
| 2.99B | 3.05B | 3.16B | 3.10B | 2.59B | 2.16B | Total Debt |
| 640.00M | 650.00M | 648.75M | 693.75M | 427.50M | 200.00M | Net Debt |
| 588.05M | 609.25M | 587.03M | 586.51M | 373.30M | 170.67M | Total Liabilities |
| 1.51B | 1.56B | 1.59B | 1.61B | 1.23B | 961.64M | Stockholders Equity |
| 1.44B | 1.46B | 1.53B | 1.44B | 1.33B | 1.20B |
| Cash Flow | Free Cash Flow | ||||
| -114.42M | -84.06M | -124.42M | -58.54M | -38.03M | 32.84M | Operating Cash Flow |
| 241.15M | 329.73M | 474.37M | 448.71M | 332.82M | 445.91M | Investing Cash Flow |
| -222.04M | -241.45M | -434.94M | -514.33M | -397.30M | -263.27M | Financing Cash Flow |
| -34.95M | -105.72M | -87.07M | 118.03M | 89.67M | -185.96M |
Werner Enterprises Technical Analysis
Negative
26.16
Price Trends
27.98
Negative
31.27
Negative
34.38
Negative
Market Momentum
-0.32
Negative
41.58
Neutral
22.13
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 26.16 is below the 20-day moving average (MA) of 26.75, below the 50-day MA of 27.98, and below the 200-day MA of 34.38, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 41.58 is Neutral, neither overbought nor oversold. The STOCH value of 22.13 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 16 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.42B | 8.20 | 14.25% | 0.76% | -5.69% | 51.78% | |
65 Neutral | $4.12B | 33.23 | 4.20% | 1.62% | -0.30% | -20.76% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
63 Neutral | $7.33B | 48.69 | 2.13% | 1.51% | 1.16% | 36.33% | |
53 Neutral | $705.41M | ― | -3.44% | 0.91% | -13.10% | -121.50% | |
50 Neutral | $1.62B | 91.85 | 1.21% | 2.13% | -7.66% | -78.26% | |
48 Neutral | $2.50B | ― | -27.75% | ― | 32.38% | -2221.75% |
* Industrials Sector Average
Performance Comparison
WERN
Werner Enterprises
26.16
-10.40
-28.45%
HTLD
Heartland Express
8.80
-2.64
-23.08%
KNX
Knight Transportation
43.49
-3.59
-7.63%
ARCB
ArcBest
62.05
-43.58
-41.26%
SNDR
Schneider National
23.53
1.58
7.20%
RXO
RXO, Inc.
15.25
-5.08
-24.99%
Werner Enterprises Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -5.42%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Werner Enterprises faced a challenging Q1 with negative financial results driven by elevated insurance costs, weather disruptions, and tariff uncertainties. However, strategic growth in the Dedicated segment, progress in technology transformation, and strong liquidity provide a foundation for future improvements.Q1-2025 Updates
Positive Updates
Dedicated Fleet Growth and New Contracts
Werner was awarded several fleet contracts during the quarter, representing over 200 trucks scheduled for implementation in late Q2 and early Q3. Awards signed this quarter were the highest since Q2 2022.
Technology Transformation Progress
All logistics loads except Final Mile are running through the EDGE TMS platform. More than half of One-Way Truckload volume and a quarter of Dedicated volume are in EDGE, with expectations of increased productivity gains by Q4 2025.
Cost Savings Initiatives
Werner has taken out $100 million in costs over the last two years and increased its 2025 cost savings target from $25 million to $40 million, achieving $8 million in savings in Q1.
Strong Liquidity Position
Werner's liquidity reached a new high point of $777 million, up nearly 70% from year-end, due to a new $300 million credit facility.
Negative Updates
Negative Financial Performance
Revenues were down 7% year-over-year, adjusted EPS was negative $0.12, and adjusted operating margin was negative 0.3%.
Elevated Insurance Costs
Increased insurance costs, including a $0.09 EPS impact from a nuclear verdict related to a 2019 incident, have been a significant headwind.
Weather and Tariff Challenges
Extreme weather and tariff-induced uncertainty led to inefficiencies and lower utilization, impacting EPS by approximately $0.04.
Decline in One-Way Truckload Revenue
One-Way Truckload revenue net of fuel was down 9%, with revenue per truck per week decreasing 3.2% due to lower miles per truck.
Company Guidance
During the Werner Enterprises First Quarter 2025 Earnings Conference Call, several key metrics were discussed, highlighting the company's financial performance and strategic initiatives. The call reported a 7% decrease in revenues compared to the prior year, with an adjusted EPS of negative $0.12 and an adjusted operating margin of negative 0.3%. The performance was impacted by elevated insurance costs and claims, adverse weather conditions, increased IT spending, and operational inefficiencies, leading to a $0.25 year-over-year decrease in adjusted EPS. Despite these challenges, Werner secured several Dedicated fleet contracts and saw a third consecutive quarter of revenue per total mile increase in the One-Way Truckload segment. The company maintained its full-year fleet growth guidance of 1% to 5% and net CapEx guidance between $185 million and $235 million. Adjusted operating loss for the quarter was $1.8 million, with TTS revenue declining 9%. Logistics revenue was down 3% year-over-year, while the company achieved $8 million in cost savings during the quarter and increased its 2025 cost savings target from $25 million to $40 million. Operating cash flow was $29 million, and liquidity reached a new high with a $777 million availability, following the closing of a new $300 million credit facility.Werner Enterprises Corporate Events
Executive/Board ChangesShareholder Meetings
Werner Enterprises Appoints New Board Member
Neutral
May 15, 2025
On May 13, 2025, Werner Enterprises appointed M. Gayle Packer to its Board of Directors to fill a Class III directorship vacancy. Packer, who is the President and CEO of Terracon Consultants Inc., brings extensive leadership experience and will serve on the Board’s Audit and ESG Committees. Additionally, at the company’s Annual Meeting on the same day, stockholders elected three Class I directors, approved an advisory resolution on executive compensation, and ratified KPMG LLP as the independent registered public accounting firm for 2025.
The most recent analyst rating on (WERN) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Werner Enterprises stock, see the WERN Stock Forecast page.
Business Operations and Strategy
Werner Enterprises to Attend BofA Investment Conference
Neutral
Apr 9, 2025
On April 9, 2025, Werner Enterprises announced its participation in two upcoming investment conferences: the BofA Industrials, Transportation & Airlines Key Leaders Conference on May 15, 2025, and the Wolfe Research Small & Mid-Cap Conference on June 5, 2025, both in New York. These events will feature investor meetings and presentations by key executives, with live webcasts available on the company’s website. This participation highlights Werner’s commitment to engaging with investors and showcasing its strategic initiatives and industry positioning.
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.