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.

Snowflake

Fundamentals

Excellent balance sheet and good value.


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


Market Performance


7 Day Return

0.2%

WNC

3.2%

US Machinery

1.3%

US Market


1 Year Return

-7.0%

WNC

1.6%

US Machinery

5.9%

US Market

Return vs Industry: WNC underperformed the US Machinery industry which returned 1.6% over the past year.

Return vs Market: WNC underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

WNCIndustryMarket
7 Day0.2%3.2%1.3%
30 Day-6.8%-3.8%-1.9%
90 Day-11.2%-4.6%-1.8%
1 Year-4.9%-7.0%3.8%1.6%8.3%5.9%
3 Year7.4%2.2%45.8%36.4%45.6%36.2%
5 Year19.7%13.8%59.9%40.7%66.1%47.9%

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?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WNC ($13.59) is trading below our estimate of fair value ($19.93)

Significantly Undervalued: WNC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WNC is good value based on its PE Ratio (12.2x) compared to the Machinery industry average (19.6x).

PE vs Market: WNC is good value based on its PE Ratio (12.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: WNC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: WNC is good value based on its PB Ratio (1.5x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

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

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WNC's forecast earnings growth (6.6% per year) is above the savings rate (2.7%).

Earnings vs Market: WNC's earnings (6.6% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: WNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: WNC's revenue is expected to decline over the next 3 years (-8.5% per year).

High Growth Revenue: WNC's revenue is forecast to decline over the next 3 years (-8.5%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if WNC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wabash National performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WNC's earnings have grown by 4.7% 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 (-49%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: WNC's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: WNC's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: WNC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Wabash National's financial position?


Financial Position Analysis

Short Term Liabilities: WNC's short term assets ($615.4M) exceeds its short term liabilities ($321.3M)

Long Term Liabilities: WNC's short term assets (615.4M) exceeds its long term liabilities (552.0M)


Debt to Equity History and Analysis

Debt Level: WNC's debt to equity ratio (97.7%) is considered high

Reducing Debt: WNC's debt to equity ratio has reduced from 98% to 97.7% over the past 5 years.

Debt Coverage: WNC's debt is well covered by operating cash flow (27.1%).

Interest Coverage: WNC's interest payments on its debt are well covered by EBIT (4.8x 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 1.256360x debt).


Next Steps

Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WNC's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: WNC's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonably low payout ratio (28.3%), 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?

1.6yrs

Average management tenure


CEO

Brent Yeagy (48yo)

1.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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

1.6yrs

Average Tenure

47.5yo

Average Age

Experienced Management: WNC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

7.6yrs

Average Tenure

58yo

Average Age

Experienced Board: WNC's board of directors are considered experienced (7.6 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


Management Team

  • Rodney Ehrlich (72yo)

    CTO & Senior VP

    • Tenure: 15.8yrs
    • Compensation: US$657.91k
  • Melanie Margolin (47yo)

    Senior VP

    • Tenure: 1.4yrs
  • Kevin Page (57yo)

    Senior VP & Group President of Diversified Products

    • Tenure: 0yrs
    • Compensation: US$783.95k
  • Jeff Taylor (53yo)

    Senior VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$1.39m
  • Brent Yeagy (48yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$2.83m
  • Dustin Smith (41yo)

    Senior VP & Group President of Commercial Trailer Products

    • Tenure: 0yrs
    • Compensation: US$985.12k
  • Mike Pettit (44yo)

    Senior VP & Group President of Final Mile Products

    • Tenure: 0yrs
    • Compensation: US$898.50k
  • Dana Stelsel

    Director of Corporate Communications

    • Tenure: 0yrs
  • Mary Glazner (41yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.9yrs
  • Ryan Reed

    Director of Investor Relations

    • Tenure: 1.8yrs

Board Members

  • Stuart Taylor (58yo)

    Independent Director

    • Tenure: 0.2yrs
  • Martin Jischke (77yo)

    Independent Chairman of the Board

    • Tenure: 12.4yrs
    • Compensation: US$218.00k
  • Scott Sorensen (57yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$201.28k
  • Ann Murtlow (58yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$192.26k
  • Jack Boss (59yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$193.73k
  • John Kunz (54yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$201.61k
  • Larry Magee (64yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$195.42k
  • Brent Yeagy (48yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$2.83m

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$740.065m
  • Shares outstanding: 54.46m
  • 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 thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:25
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.