Werner Enterprises (WERN) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: 2.02%
• Average Volume (3M): 922.09K
• Price to Earnings (P/E): 96.9
• Beta (1Y): 0.78
• Revenue Growth: -7.66%
• EPS Growth: -78.26%
• Country: US
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 87
• Industry: Trucking
• EPS (TTM): -0.12
• Shares Outstanding: 61,751,915
• 10 Day Avg. Volume: 942,415
• 30 Day Avg. Volume: 922,092
• PEG Ratio: -5.14
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -44.10
• Enterprise Value/Market Cap: 1.85
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 12.07
• Enterprise Value/Ebitda: 2.15
• 1Y Price Target: $28.92
• Price Target Upside: 4.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 58 Neutral
• Price Target: $28.00 ▲(1.45%Upside)

Werner Enterprises faces significant challenges with profitability and valuation. The company's high P/E ratio and negative earnings results from the recent quarter weigh heavily on the score. Despite these issues, stability in its capital structure and strategic growth initiatives offer potential for future recovery.

Positive Factors

Fleet Growth Strategy

Werner Enterprises is targeting fleet growth and pursuing new Dedicated verticals to drive momentum.

Logistics Volume Growth

Logistics volumes for WERN are trending positive, with 90% of segment volumes increasing year-over-year.

New Contracts

WERN won important new contracts for its Dedicated business, which should be accretive over the medium term.

Negative Factors

Earnings Miss

WERN posted an adjusted 1Q25 loss per share of $0.12, coming in substantially below the average Street forecast of $0.12.

Margin Pressure

Analyst reiterates an Underperform rating for WERN due to cautiousness given margin pressure.

Operational Inefficiencies

Elevated insurance costs, extreme weather, and accelerated IT spend all coupled with operational inefficiencies to drive the large miss.

Werner Enterprises Business Overview & Revenue Model

Company Description

Werner Enterprises, Inc. (WERN) is a leading transportation and logistics company based in the United States. Established in 1956, the company operates in the Truckload, Dedicated, Logistics, and Intermodal sectors, offering a broad range of services including truckload shipping, freight management, and supply chain solutions. Werner Enterprises is known for its commitment to safety, advanced technology, and sustainability initiatives, serving customers across various industries with a substantial fleet of trucks and trailers.

How the Company Makes Money

Werner Enterprises primarily generates revenue through its truckload transportation services, which involve transporting full trailer loads of freight for customers across North America. The company's Dedicated segment provides customized transportation solutions for specific customer needs. In addition, Werner's Logistics division contributes to its revenue by offering freight management, brokerage, and supply chain services. The Intermodal segment leverages the company's expertise in integrating different modes of transportation, such as rail and truck, to provide efficient and cost-effective shipping solutions. Key revenue streams include long-term contracts with large shippers, spot market services, and partnerships with major retailers and manufacturers. Werner's investment in technology and fleet optimization also plays a significant role in enhancing operational efficiency and profitability.

Werner Enterprises Financial Statement Overview

Summary

Werner Enterprises demonstrates stability in its capital structure with a conservative leverage profile. However, challenges in profitability and cash flow management are evident, with declining profit margins and negative free cash flow impacting overall financial health. Strategic measures to improve efficiency and profitability 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.

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.

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.

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
262.54M	338.63M	423.65M	521.59M	477.93M	460.89M
	EBIT
44.73M	66.15M	176.42M	44.50M	42.42M	-34.38M
	EBITDA
343.73M	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
-108.56M	-84.06M	-124.42M	-58.54M	-38.03M	32.84M
	Operating Cash Flow
270.52M	329.73M	474.37M	448.71M	332.82M	445.91M
	Investing Cash Flow
-219.67M	-241.45M	-434.94M	-514.33M	-397.30M	-263.27M
	Financing Cash Flow
-55.48M	-105.72M	-87.07M	118.03M	89.67M	-185.96M

Werner Enterprises Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WERN, the sentiment is Positive. The current price of 27.6 is above the 20-day moving average (MA) of 26.87, above the 50-day MA of 27.16, and below the 200-day MA of 33.65, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 69.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WERN.

Werner Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	73 Outperform	$1.60B	9.00	14.25%	0.69%	-5.69%	51.78%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
KNX	64 Neutral	$7.14B	45.97	2.13%	1.64%	1.16%	36.33%
SNDR	63 Neutral	$4.28B	34.01	4.20%	1.58%	-0.30%	-20.76%
WERN	58 Neutral	$1.72B	96.91	1.21%	2.02%	-7.66%	-78.26%
HTLD	48 Neutral	$695.98M	―	-3.44%	0.90%	-13.10%	-121.50%
RXO	46 Neutral	$2.64B	―	-27.75%	―	32.38%	-2221.75%

Werner Enterprises Corporate Events

Werner Enterprises Appoints New Board Member

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.

Werner Enterprises to Attend BofA Investment Conference

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.