NasdaqGS:FWRD

Stock Analysis Report

Executive Summary

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United State and Canada.

Rewards

Trading at 4.5% below its fair value

Earnings are forecast to grow 10.11% per year

Pays a reliable dividend of 1.19%

Risk Analysis

No risks detected for FWRD from our risk checks.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Forward Air's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.3%

FWRD

-10.7%

US Logistics

-7.6%

US Market


1 Year Return

-6.4%

FWRD

-11.2%

US Logistics

10.2%

US Market

Return vs Industry: FWRD exceeded the US Logistics industry which returned -11.2% over the past year.

Return vs Market: FWRD underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

FWRDIndustryMarket
7 Day-6.3%-10.7%-7.6%
30 Day-10.3%-10.7%-4.5%
90 Day-14.3%-13.2%-0.6%
1 Year-5.4%-6.4%-9.1%-11.2%12.5%10.2%
3 Year24.7%20.6%0.2%-6.2%37.1%28.3%
5 Year21.4%14.9%7.2%-3.9%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Forward Air undervalued compared to its fair value and its price relative to the market?

4.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FWRD ($60.65) is trading below our estimate of fair value ($63.49)

Significantly Below Fair Value: FWRD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FWRD is good value based on its PE Ratio (19.8x) compared to the Logistics industry average (20.4x).

PE vs Market: FWRD is poor value based on its PE Ratio (19.8x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: FWRD is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: FWRD is overvalued based on its PB Ratio (2.9x) compared to the US Logistics industry average (2.6x).


Next Steps

Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FWRD's forecast earnings growth (10.1% per year) is above the savings rate (1.7%).

Earnings vs Market: FWRD's earnings (10.1% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: FWRD's revenue (8.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: FWRD's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Forward Air performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FWRD has high quality earnings.

Growing Profit Margin: FWRD's current net profit margins (6.1%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: FWRD's earnings have grown by 16.2% per year over the past 5 years.

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

Earnings vs Industry: FWRD had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Logistics industry average (-6.4%).


Return on Equity

High ROE: FWRD's Return on Equity (15.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Forward Air's financial position?


Financial Position Analysis

Short Term Liabilities: FWRD's short term assets ($236.3M) exceed its short term liabilities ($137.2M).

Long Term Liabilities: FWRD's short term assets ($236.3M) do not cover its long term liabilities ($276.5M).


Debt to Equity History and Analysis

Debt Level: FWRD's debt to equity ratio (11.7%) is considered satisfactory.

Reducing Debt: FWRD's debt to equity ratio has increased from 0.3% to 11.7% over the past 5 years.

Debt Coverage: FWRD's debt is well covered by operating cash flow (236.1%).

Interest Coverage: FWRD's interest payments on its debt are well covered by EBIT (44.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: FWRD's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Forward Air's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Forward Air before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%4.0%industryaverage3.0%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: FWRD's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: FWRD's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: FWRD's dividends per share have been stable in the past 10 years.

Growing Dividend: FWRD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), FWRD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FWRD's dividends in 3 years are forecast to be well covered by earnings (22.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Tom Schmitt (54yo)

1.4yrs

Tenure

US$4,363,909

Compensation

Mr. Thomas Schmitt, also known as Tom, is the President, Chief Executive Officer and Director of Forward Air Corporation, since September 1, 2018 and also serves as its Executive Chairman of the Board. He  ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.36M) is about average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Insufficient data to compare Tom's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Schmitt
Executive Chairman1.4yrsUS$4.36m0.11% $1.9m
Michael Morris
CFO, Senior VP & Treasurer3.7yrsUS$1.49m0.078% $1.3m
Chris Ruble
Chief Operating Officer1.7yrsUS$1.65m0.11% $1.9m
Michael Hance
Chief Legal Officer & Secretary5.8yrsUS$1.42m0.12% $2.1m
Matthew Jewell
Chief Commercial Officer17.6yrsUS$1.66m0.17% $3.0m
Bruce Campbell
Consultant0.8yrsUS$3.59m0.30% $5.0m
Christina Bottomley
Chief Accounting Officer0.8yrsno data0.011% $188.6k
Joseph Tomasello
Chief Information Officer0yrsno data0.019% $329.7k
Kyle Mitchin
Chief People Officer0yrsno data0.040% $676.2k
Matt Casey
Senior Vice President of Safety0yrsno datano data

1.7yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FWRD's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Schmitt
Executive Chairman1.4yrsUS$4.36m0.11% $1.9m
George Lynch
Independent Director14.6yrsUS$205.09k0.042% $716.4k
Ronald Allen
Independent Director5.3yrsUS$213.05k0.050% $855.2k
C. Langley
Independent Director15.8yrsUS$188.41k0.10% $1.7m
Wayne West
Independent Director1.3yrsUS$100.98k0.011% $182.9k
C. Campbell
Independent Director14.5yrsUS$236.51k0.073% $1.2m
Valerie Bonebrake
Independent Director2.1yrsUS$219.70k0.0091% $155.0k
Laurie Tucker
Independent Director0.3yrsno data0.0038% $65.5k
R. Carlock
Lead Independent Director0.8yrsUS$198.10k0.030% $512.5k
Ana Amicarella
Independent Director2.6yrsUS$188.20k0.019% $318.5k

2.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: FWRD's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Forward Air Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Forward Air Corporation
  • Ticker: FWRD
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$1.707b
  • Shares outstanding: 28.14m
  • Website: https://www.forwardair.com

Number of Employees


Location

  • Forward Air Corporation
  • Building N
  • 1915 Snapps Ferry Road
  • Greeneville
  • Tennessee
  • 37745
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FWRDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1993

Biography

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United State and Canada. The company operates through three segments: Expedited Freight, Intermodal, and Pool Distribution. The Expedited Freight segment provides expedited regional, inter-regional, and national less-than-truckload services; local pick-up and delivery services; and other services, which include final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. It also offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract, and container freight station warehouse and handling services. The Pool segment offers pool distribution services comprising managing high-frequency handling and distribution of time-sensitive products to various destinations through a network of terminals. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:43
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.