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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

4.1%

FWRD

2.5%

US Logistics

1.0%

US Market


1 Year Return

2.3%

FWRD

-5.5%

US Logistics

8.0%

US Market

Return vs Industry: FWRD exceeded the US Logistics industry which returned -5.5% over the past year.

Return vs Market: FWRD underperformed the US Market which returned 8% over the past year.


Shareholder returns

FWRDIndustryMarket
7 Day4.1%2.5%1.0%
30 Day2.7%-0.3%-0.07%
90 Day6.1%4.3%-1.0%
1 Year3.5%2.3%-3.2%-5.5%10.4%8.0%
3 Year62.3%56.8%16.8%9.0%46.2%36.7%
5 Year44.0%36.4%28.0%14.8%64.3%46.2%

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?

20.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FWRD ($64.95) is trading above our estimate of fair value ($58.25)

Significantly Below Fair Value: FWRD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FWRD is good value based on its PE Ratio (20.7x) compared to the Logistics industry average (23.3x).

PE vs Market: FWRD is poor value based on its PE Ratio (20.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FWRD is overvalued based on its PB Ratio (3.3x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

How is Forward Air forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FWRD's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: FWRD's earnings (11.2% 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 (5.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FWRD's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FWRD's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Forward Air performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FWRD's earnings have grown by 14.4% 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 (-4.8%) over the past year, making it difficult to compare to the Logistics industry average (-9.9%).


Return on Equity

High ROE: FWRD's Return on Equity (16.5%) is considered low.


Return on Assets

ROA vs Industry: FWRD has a higher Return on Assets than the Logistics industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Forward Air's financial position?


Financial Position Analysis

Short Term Liabilities: FWRD's short term assets ($193.1M) exceeds its short term liabilities ($136.6M)

Long Term Liabilities: FWRD's short term assets (193.1M) do not cover its long term liabilities (249.9M)


Debt to Equity History and Analysis

Debt Level: FWRD's debt to equity ratio (10.5%) is considered satisfactory

Reducing Debt: FWRD's debt to equity ratio has increased from 0% to 10.5% over the past 5 years.

Debt Coverage: FWRD's debt is well covered by operating cash flow (273.6%).

Interest Coverage: FWRD's interest payments on its debt are well covered by EBIT (57.4x 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 3.357300x debt).


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FWRD's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: FWRD's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (22%), 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 (22.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Tom Schmitt (54yo)

1.1yrs

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

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


Management Age and Tenure

1.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: FWRD's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

67yo

Average Age

Experienced Board: FWRD's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

SellUS$1,082,48204 Mar 19
Bruce Campbell
EntityIndividual
Role
Consultant
Consultant
Shares16,651
Max PriceUS$65.01
SellUS$531,25028 Feb 19
Bruce Campbell
EntityIndividual
Role
Consultant
Consultant
Shares8,148
Max PriceUS$65.20
SellUS$5,98228 Feb 19
Bruce Campbell
EntityIndividual
Role
Consultant
Consultant
Shares92
Max PriceUS$65.02
SellUS$1,653,08126 Feb 19
Bruce Campbell
EntityIndividual
Role
Consultant
Consultant
Shares24,921
Max PriceUS$67.10
SellUS$136,20022 Feb 19
Chris Ruble
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares2,000
Max PriceUS$68.10
SellUS$118,92202 Nov 18
George Lynch
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,965
Max PriceUS$60.52

Ownership Breakdown


Management Team

  • Bruce Campbell (67yo)

    Consultant

    • Tenure: 0.4yrs
    • Compensation: US$3.59m
  • Mike Morris (50yo)

    CFO, Senior VP & Treasurer

    • Tenure: 3.3yrs
    • Compensation: US$1.49m
  • Chris Ruble (56yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.65m
  • Matt Jewell (53yo)

    Chief Commercial Officer

    • Tenure: 17.3yrs
    • Compensation: US$1.66m
  • Tom Schmitt (54yo)

    Chairman

    • Tenure: 1.1yrs
    • Compensation: US$4.36m
  • Michael Hance (47yo)

    Senior VP

    • Tenure: 5.4yrs
    • Compensation: US$1.42m
  • Jay Tomasello

    Chief Information Officer

    • Tenure: 0yrs
  • Christina Bottomley

    Chief Accounting Officer

    • Tenure: 0.4yrs
  • Matt Casey

    Senior Vice President of Safety

    • Tenure: 0yrs
  • Kyle Mitchin

    Chief People Officer

    • Tenure: 0yrs

Board Members

  • Mike Lynch (75yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$205.09k
  • Ron Allen (77yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$213.05k
  • C. Langley (73yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$188.41k
  • Gil West (58yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$100.98k
  • Bob Campbell (74yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$236.51k
  • Valerie Bonebrake (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$219.70k
  • Tom Schmitt (54yo)

    Chairman

    • Tenure: 1.1yrs
    • Compensation: US$4.36m
  • R. Carlock (52yo)

    Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: US$198.10k
  • Ana Amicarella (52yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$188.20k

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$1.839b
  • Shares outstanding: 28.31m
  • 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 four segments: Expedited Less- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:34
End of Day Share Price2019/10/22 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.