NasdaqGS:WERN

Stock Analysis Report

Executive Summary

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, Canada, and China.

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Werner Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

WERN

3.3%

US Transportation

1.0%

US Market


1 Year Return

8.8%

WERN

13.1%

US Transportation

8.0%

US Market

Return vs Industry: WERN matched the US Transportation industry which returned 13.1% over the past year.

Return vs Market: WERN exceeded the US Market which returned 8% over the past year.


Shareholder returns

WERNIndustryMarket
7 Day4.8%3.3%1.0%
30 Day7.4%1.0%-0.07%
90 Day12.2%-6.9%-1.0%
1 Year23.6%8.8%15.1%13.1%10.4%8.0%
3 Year80.3%55.9%86.9%78.0%46.2%36.7%
5 Year64.0%39.4%69.5%54.8%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Werner Enterprises undervalued compared to its fair value and its price relative to the market?

14.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WERN ($36.91) is trading above our estimate of fair value ($18.02)

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


Price To Earnings Ratio

PE vs Industry: WERN is good value based on its PE Ratio (14.3x) compared to the Transportation industry average (17.8x).

PE vs Market: WERN is good value based on its PE Ratio (14.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WERN is overvalued based on its PB Ratio (2.5x) compared to the US Transportation industry average (2.3x).


Next Steps

Future Growth

How is Werner Enterprises forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WERN's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: WERN's earnings are forecast to decline over the next 3 years (-5.2% per year).

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

Revenue vs Market: WERN's revenue (2.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WERN's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WERN's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Werner Enterprises performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WERN's earnings have grown by 18.2% per year over the past 5 years.

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

Earnings vs Industry: WERN had negative earnings growth (-21%) over the past year, making it difficult to compare to the Transportation industry average (-43.6%).


Return on Equity

High ROE: WERN's Return on Equity (17.6%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: WERN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Werner Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: WERN's short term assets ($453.3M) exceeds its short term liabilities ($228.6M)

Long Term Liabilities: WERN's short term assets (453.3M) do not cover its long term liabilities (867.7M)


Debt to Equity History and Analysis

Debt Level: WERN's debt to equity ratio (37.8%) is considered satisfactory

Reducing Debt: WERN's debt to equity ratio has increased from 5.1% to 37.8% over the past 5 years.

Debt Coverage: WERN's debt is well covered by operating cash flow (116.9%).

Interest Coverage: WERN's interest payments on its debt are well covered by EBIT (290x coverage).


Balance Sheet

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

Debt Coverage by Assets: WERN's debt is covered by short term assets (assets are 1.162310x debt).


Next Steps

Dividend

What is Werner Enterprises's current dividend yield, its reliability and sustainability?

0.97%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WERN's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WERN's dividend (0.98%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: WERN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14%), WERN's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WERN's dividends in 3 years are forecast to be well covered by earnings (15.8% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Derek Leathers (49yo)

3.4yrs

Tenure

US$4,183,450

Compensation

Mr. Derek J. Leathers has been the Chief Executive Officer of Werner Enterprises Inc. since May 10, 2016 and has been its President since May 2011. Mr. Leathers served as the Chief Operating Officer of Wer ...


CEO Compensation Analysis

Compensation vs. Market: Derek's total compensation ($USD4.18M) is about average for companies of similar size in the US market ($USD5.12M).

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


Management Age and Tenure

6.3yrs

Average Tenure

56yo

Average Age

Experienced Management: WERN's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

71yo

Average Age

Experienced Board: WERN's board of directors are considered experienced (3.4 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

  • Clarence Werner (81yo)

    Founder & Executive Chairman

    • Tenure: 3.4yrs
    • Compensation: US$2.10m
  • John Steele (61yo)

    Executive VP

    • Tenure: 23.8yrs
    • Compensation: US$862.30k
  • H. Nordlund (57yo)

    Senior EVP & COO

    • Tenure: 3.4yrs
    • Compensation: US$1.38m
  • Derek Leathers (49yo)

    President & CEO

    • Tenure: 3.4yrs
    • Compensation: US$4.18m
  • Jim Schelble (58yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 3.4yrs
    • Compensation: US$948.50k
  • James Johnson (55yo)

    Executive VP

    • Tenure: 9.3yrs
    • Compensation: US$783.32k
  • Skip Schollaert

    Senior Vice President of Brokerage & Intermodal Operations

    • Tenure: 0yrs
  • Craig Callahan (45yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0yrs
  • Fred Thayer

    Director of Corporate Communications

    • Tenure: 13.3yrs
  • Nathan Meisgeier (45yo)

    Executive VP & Chief Legal Officer

    • Tenure: 1.7yrs

Board Members

  • Clarence Werner (81yo)

    Founder & Executive Chairman

    • Tenure: 3.4yrs
    • Compensation: US$2.10m
  • Greg Werner (59yo)

    Director

    • Tenure: 25.8yrs
    • Compensation: US$5.90m
  • Michael Gallagher (74yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$100.00k
  • Gerald Timmerman (79yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$100.00k
  • Kenneth Bird (71yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$100.00k
  • Patrick Jung (71yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$125.00k
  • Diane Duren (59yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$105.00k
  • Jack Holmes (59yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$62.50k
  • Dwaine Peetz (68yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$100.00k

Company Information

Werner Enterprises, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Werner Enterprises, Inc.
  • Ticker: WERN
  • Exchange: NasdaqGS
  • Founded: 1956
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$2.554b
  • Shares outstanding: 69.20m
  • Website: https://www.werner.com

Number of Employees


Location

  • Werner Enterprises, Inc.
  • 14507 Frontier Road
  • Omaha
  • Nebraska
  • 68138
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WERNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1986
WE1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1986

Biography

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, Cana ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:50
End of Day Share Price2019/10/21 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.