NYSE:WNC

Stock Analysis Report

Executive Summary

Wabash National Corporation designs, manufactures, and distributes transportation and diversified industrial products; and provides services primarily in the United States.

Rewards

Trading at 41.4% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -1.6% per year for the next 3 years

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Wabash National's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

WNC

1.7%

US Machinery

1.7%

US Market


1 Year Return

-12.4%

WNC

18.4%

US Machinery

23.2%

US Market

Return vs Industry: WNC underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: WNC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

WNCIndustryMarket
7 Day-3.9%1.7%1.7%
30 Day-14.8%1.3%4.2%
90 Day-7.3%10.6%11.9%
1 Year-10.4%-12.4%20.6%18.4%25.8%23.2%
3 Year-16.3%-20.5%45.9%36.5%52.8%42.9%
5 Year13.3%7.2%78.0%56.5%75.2%55.8%

Price Volatility Vs. Market

How volatile is Wabash National's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wabash National undervalued compared to its fair value and its price relative to the market?

42.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WNC ($13.6) is trading below our estimate of fair value ($23.19)

Significantly Below Fair Value: WNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WNC is good value based on its PE Ratio (9.1x) compared to the Machinery industry average (23.4x).

PE vs Market: WNC is good value based on its PE Ratio (9.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WNC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WNC is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Wabash National forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WNC's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: WNC's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: WNC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WNC's revenue is expected to decline over the next 3 years (-5% per year).

High Growth Revenue: WNC's revenue is forecast to decline over the next 3 years (-5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WNC's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Wabash National performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WNC has high quality earnings.

Growing Profit Margin: WNC's current net profit margins (3.5%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: WNC's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: WNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WNC had negative earnings growth (-22.8%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: WNC's Return on Equity (16.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wabash National's financial position?


Financial Position Analysis

Short Term Liabilities: WNC's short term assets ($621.4M) exceed its short term liabilities ($325.7M).

Long Term Liabilities: WNC's short term assets ($621.4M) exceed its long term liabilities ($537.9M).


Debt to Equity History and Analysis

Debt Level: WNC's debt to equity ratio (92.2%) is considered high.

Reducing Debt: WNC's debt to equity ratio has increased from 87.5% to 92.2% over the past 5 years.

Debt Coverage: WNC's debt is well covered by operating cash flow (27.8%).

Interest Coverage: WNC's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: WNC has a high level of physical assets or inventory.

Debt Coverage by Assets: WNC's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Wabash National's current dividend yield, its reliability and sustainability?

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.6%industryaverage1.9%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: WNC's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: WNC's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WNC has been paying a dividend for less than 10 years.

Growing Dividend: WNC's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), WNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Wabash National's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Brent Yeagy (48yo)

1.6yrs

Tenure

US$2,831,187

Compensation

Mr. Brent L. Yeagy has been the President and Chief Executive Officer of Wabash National Corporation since October 1, 2016 and June 2, 2018 respectively. He was its Chief Operating Officer at Wabash Nation ...


CEO Compensation Analysis

Compensation vs Market: Brent's total compensation ($USD2.83M) is about average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Brent's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

47.5yo

Average Age

Experienced Management: WNC's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

58yo

Average Age

Experienced Board: WNC's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rodney Ehrlich (72yo)

    CTO & Senior VP

    • Tenure: 16yrs
    • Compensation: US$657.91k
  • Melanie Margolin (47yo)

    Senior VP

    • Tenure: 1.7yrs
  • Jeff Taylor (53yo)

    Senior VP & CFO

    • Tenure: 6yrs
    • Compensation: US$1.39m
  • Brent Yeagy (48yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$2.83m
  • Don Hurtt

    Treasurer and Vice President of Tax

    • Tenure: 6yrs
  • Dustin Smith (41yo)

    Senior VP & Group President of Commercial Trailer Products

    • Tenure: 2.3yrs
    • Compensation: US$985.12k
  • Dana Stelsel

    Director of Corporate Communications

    • Mary Glazner (41yo)

      Senior VP & Chief Human Resources Officer

      • Tenure: 1.2yrs
    • Ryan Reed

      Director of Investor Relations

      • Tenure: 2yrs

    Board Members

    • Stuart Taylor (58yo)

      Independent Director

      • Tenure: 0.4yrs
    • Martin Jischke (77yo)

      Independent Chairman of the Board

      • Tenure: 12.7yrs
      • Compensation: US$218.00k
    • Scott Sorensen (57yo)

      Independent Director

      • Tenure: 14.8yrs
      • Compensation: US$201.28k
    • Ann Murtlow (58yo)

      Independent Director

      • Tenure: 6.9yrs
      • Compensation: US$192.26k
    • Jack Boss (59yo)

      Independent Director

      • Tenure: 2.1yrs
      • Compensation: US$193.73k
    • John Kunz (54yo)

      Independent Director

      • Tenure: 8.8yrs
      • Compensation: US$201.61k
    • Larry Magee (64yo)

      Independent Director

      • Tenure: 15yrs
      • Compensation: US$195.42k
    • Brent Yeagy (48yo)

      President

      • Tenure: 1.6yrs
      • Compensation: US$2.83m
    • Terry Bassett (56yo)

      Independent Director

      • Tenure: 0.2yrs

    Company Information

    Wabash National Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Wabash National Corporation
    • Ticker: WNC
    • Exchange: NYSE
    • Founded: 1985
    • Industry: Construction Machinery and Heavy Trucks
    • Sector: Capital Goods
    • Market Cap: US$724.840m
    • Shares outstanding: 54.09m
    • Website: https://www.wabashnational.com

    Number of Employees


    Location

    • Wabash National Corporation
    • 1000 Sagamore Parkway South
    • Lafayette
    • Indiana
    • 47905
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    WNCNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1991
    WA9DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1991
    0LSOLSE (London Stock Exchange)YesCommon StockGBUSDNov 1991

    Biography

    Wabash National Corporation designs, manufactures, and distributes transportation and diversified industrial products; and provides services primarily in the United States. The company operates through three segments: Commercial Trailer Products, Diversified Products, and Final Mile Products. The Commercial Trailer Products segment provides dry van trailers; platform trailers; refrigerated trailers; converter dollies, big tire haulers, steel coil haulers, and RoadRailer trailers; aftermarket parts and services; and used trailers. The Diversified Products segment offers stainless steel and aluminum liquid and dry bulk tank trailers, and other transport solutions for the dairy, food and beverage, chemical, environmental, petroleum, and refined fuel industries; and parts, and maintenance and repair services for tank trailers and other related equipment. This segment also offers process vessels, and round horizontal and vertical storage silo tanks; containment and isolation systems for the pharmaceutical, chemical, biotech, and nuclear industries; and composite products. The Final Mile Products segment provides van bodies for dry-freight transportation; cutaway van bodies for commercial applications; service bodies; insulated van bodies; stake bodies; and refrigerated and dry freight truck bodies. The company offers its products under the Walker Transport, Brenner Tank, Bulk Tank International, Beall, Walker Engineered Products, Extract Technology, DuraPlate, DuraPlateHD, DuraPlate XD-35, DuraPlate AeroSkirt, ArcticLite, Transcraft, Benson, Supreme, Iner-City, Spartan, Kold King, and Wabash National brands directly, as well as through independent dealer and retail operations to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 01:43
    End of Day Share Price2020/01/16 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.