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Werner Enterprises (WERN)
NASDAQ:WERN
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Werner Enterprises
(NASDAQ:WERN)
50Neutral
Positive Factors
Fleet and Capex
WERN's low age fleet and increased asset-light offers helpful capex optionality.
New Contracts
WERN won important new contracts for its Dedicated business, which should be accretive over the medium term.
Tech Rollout
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.
Operational Challenges
Elevated insurance costs, extreme weather, and accelerated IT spend all coupled with operational inefficiencies to drive the large miss.
TTS Segment
The TTS segment, which accounts for 70% of company revenues, showed a significant operating ratio deterioration.
Werner Enterprises (WERN) vs. S&P 500 (SPY)
Market Cap
$1.54B
Dividend Yield2.27%
Average Volume (3M)1.05M
Price to Earnings (P/E)87.3
Beta (1Y)0.74
Revenue Growth-7.66%
EPS GrowthN/A
CountryUS
Employees12,896
SectorIndustrials
Sector Strength78
IndustryTrucking
Share Statistics
EPS (TTM)0.28
Shares Outstanding61,924,797
10 Day Avg. Volume1,197,897
30 Day Avg. Volume1,047,872
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.90
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.65
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.64Price Target Upside19.04% Upside
Rating ConsensusHold
Number of Analyst Covering14
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 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
24.90
Price Trends
29.71
Negative
33.05
Negative
35.23
Negative
Market Momentum
-0.78
Positive
29.91
Positive
27.12
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 24.9 is below the 20-day moving average (MA) of 27.91, below the 50-day MA of 29.71, and below the 200-day MA of 35.23, indicating a bearish trend. The MACD of -0.78 indicates Positive momentum. The RSI at 29.91 is Positive, neither overbought nor oversold. The STOCH value of 27.12 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.35B | 7.74 | 14.25% | 0.82% | -5.69% | 51.78% | |
63 Neutral | $4.21B | 11.55 | 5.28% | 250.72% | 4.13% | -9.42% | |
62 Neutral | $6.46B | 54.98 | 2.13% | 1.68% | 1.16% | 36.33% | |
58 Neutral | $3.84B | 32.90 | 3.94% | 1.77% | -3.79% | -50.29% | |
50 Neutral | $1.54B | 87.28 | 1.21% | 2.27% | -7.66% | ― | |
47 Neutral | $2.31B | ― | -25.84% | ― | 15.86% | -6302.63% | |
46 Neutral | $578.76M | ― | -3.52% | 1.05% | -13.25% | -301.55% |
* Industrials Sector Average
Performance Comparison
WERN
Werner Enterprises
24.90
-10.81
-30.27%
HTLD
Heartland Express
7.37
-3.32
-31.06%
KNX
Knight Transportation
38.98
-7.48
-16.10%
ARCB
ArcBest
57.81
-56.52
-49.44%
SNDR
Schneider National
21.86
0.16
0.74%
RXO
RXO, Inc.
14.07
-6.34
-31.06%
Werner Enterprises Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -9.98%|
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
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.
Spark’s Take on WERN Stock
According to Spark, TipRanks’ AI Analyst, WERN is a Neutral.
Overall, Werner Enterprises is experiencing stable financial health with strong equity and manageable debt but faces significant challenges in profitability and free cash flow. Technical indicators suggest bearish momentum, and the valuation appears stretched. Although the earnings call highlights some operational improvements, the decrease in revenues and high costs weigh heavily. Corporate events provide minor positive offsets.
To see Spark’s full report on WERN stock, click here.
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.
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.