Forward Air
Market Cap
US$1.8b
Last Updated
2020/02/16 23:37 UTC
Data Sources
Company Financials +
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
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
-1.6%
FWRD
1.7%
US Logistics
1.5%
US Market
1 Year Return
-3.3%
FWRD
-2.7%
US Logistics
20.1%
US Market
Return vs Industry: FWRD matched the US Logistics industry which returned -2.7% over the past year.
Return vs Market: FWRD underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| FWRD | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.6% | 1.7% | 1.5% |
| 30 Day | -11.8% | -6.8% | 1.4% |
| 90 Day | -10.9% | -5.8% | 8.7% |
| 1 Year | -2.2%-3.3% | -0.3%-2.7% | 22.7%20.1% |
| 3 Year | 29.7%25.3% | 8.7%2.2% | 50.1%40.5% |
| 5 Year | 23.3%16.8% | 16.9%5.3% | 73.1%54.1% |
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
5 days ago | Simply Wall St
A Note On Forward Air Corporation's (NASDAQ:FWRD) ROE and Debt To Equity2 weeks ago | Simply Wall St
A Look At The Intrinsic Value Of Forward Air Corporation (NASDAQ:FWRD)3 weeks ago | Simply Wall St
Should You Be Worried About Insider Transactions At Forward Air Corporation (NASDAQ:FWRD)?Valuation
Is Forward Air undervalued compared to its fair value and its price relative to the market?
22.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FWRD ($62.77) is trading below our estimate of fair value ($80.95)
Significantly Below Fair Value: FWRD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FWRD is good value based on its PE Ratio (20.5x) compared to the Logistics industry average (20.5x).
PE vs Market: FWRD is poor value based on its PE Ratio (20.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: FWRD is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: FWRD is overvalued based on its PB Ratio (3x) compared to the US Logistics industry average (2.8x).
Next Steps
Future Growth
How is Forward Air forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FWRD's forecast earnings growth (9.7% per year) is above the savings rate (1.7%).
Earnings vs Market: FWRD's earnings (9.7% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: FWRD's earnings are forecast to grow, but not significantly.
Revenue vs Market: FWRD's revenue (8.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: FWRD's revenue (8.9% 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 (6.2%) 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 (-4.5%) over the past year, making it difficult to compare to the Logistics industry average (-4.5%).
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 (12.8%) is considered satisfactory.
Reducing Debt: FWRD's debt to equity ratio has increased from 0.3% to 12.8% over the past 5 years.
Debt Coverage: FWRD's debt is well covered by operating cash flow (219.2%).
Interest Coverage: FWRD's interest payments on its debt are well covered by EBIT (43.8x 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 3.2x debt).
Next Steps
Dividend
What is Forward Air's current dividend yield, its reliability and sustainability?
1.15%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Forward Air before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FWRD's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: FWRD's dividend (1.15%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 (23.5%), 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 (21.6% 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$4,363,909
Compensation
Mr. Thomas Schmitt, also known as Tom, is the President, Chief Executive Officer and Director of Forward Air Corporation, since September 1, 2018 and also serves as its Chairman of the Board. He serves as ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD4.36M) is about average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Insufficient data to compare Tom's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.4yrs | US$4.36m | 0.11% $1.9m | |
| CFO, Senior VP & Treasurer | 3.7yrs | US$1.49m | 0.078% $1.4m | |
| Chief Operating Officer | 1.7yrs | US$1.65m | 0.11% $2.0m | |
| Senior VP | 5.8yrs | US$1.42m | 0.12% $2.1m | |
| Chief Commercial Officer | 17.6yrs | US$1.66m | 0.17% $3.1m | |
| Consultant | 0.8yrs | US$3.59m | 0.30% $5.2m | |
| Chief Accounting Officer | 0.8yrs | no data | 0.011% $195.4k | |
| Chief Information Officer | 0yrs | no data | 0.019% $341.6k | |
| Chief People Officer | 0yrs | no data | 0.040% $700.6k | |
| Senior Vice President of Safety | 0yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.4yrs | US$4.36m | 0.11% $1.9m | |
| Independent Director | 14.6yrs | US$205.09k | 0.042% $742.4k | |
| Independent Director | 5.3yrs | US$213.05k | 0.050% $886.1k | |
| Independent Director | 15.8yrs | US$188.41k | 0.10% $1.8m | |
| Independent Director | 1.3yrs | US$100.98k | 0.011% $189.6k | |
| Independent Director | 14.5yrs | US$236.51k | 0.073% $1.3m | |
| Independent Director | 2.1yrs | US$219.70k | 0.0091% $160.6k | |
| Independent Director | 0.3yrs | no data | 0.0038% $67.9k | |
| Lead Independent Director | 0.8yrs | US$198.10k | 0.030% $531.0k | |
| Independent Director | 2.6yrs | US$188.20k | 0.019% $330.0k |
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$1.768b
- Shares outstanding: 28.17m
- Website: https://www.forwardair.com
Number of Employees
Location
- Forward Air Corporation
- Building N
- 1915 Snapps Ferry Road
- Greeneville
- Tennessee
- 37745
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FWRD | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 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 four segments: Expedited Less-Than-Truckload (LTL), Truckload Premium Services (TLS), Intermodal, and Pool Distribution (Pool). The Expedited LTL segment provides expedited regional, inter-regional, and national LTL services, as well as local pick-up and delivery services. It also offers shipment consolidation and deconsolidation, warehousing, final mile, customs brokerage, and other handling services. This segment provides its transportation services through a network of terminals located at or near airports. The TLS segment 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 high-frequency handling and distribution of time-sensitive products to various destinations. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:37 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.