NasdaqGS:WERN

Stock Analysis Report

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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, China, and internationally.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


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

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


Market Performance


7 Day Return

-5.3%

WERN

2.2%

US Transportation

2.6%

US Market


1 Year Return

30.8%

WERN

2.9%

US Transportation

15.4%

US Market

Return vs Industry: WERN exceeded the US Transportation industry which returned 3.2% over the past year.

Return vs Market: WERN exceeded the US Market which returned 16.2% over the past year.


Shareholder returns

WERNIndustryMarket
7 Day-5.3%2.2%2.6%
30 Day-4.9%4.1%6.1%
90 Day0.4%12.8%16.6%
1 Year32.1%30.8%4.2%2.9%17.8%15.4%
3 Year62.4%40.5%59.8%52.4%43.9%34.7%
5 Year76.8%50.0%114.9%96.2%76.2%57.3%

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?

19.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WERN ($42.14) is trading above our estimate of fair value ($34.51)

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 (19.5x) compared to the US Transportation industry average (27.1x).

PE vs Market: WERN is poor value based on its PE Ratio (19.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: WERN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: WERN is good value based on its PB Ratio (2.6x) compared to the US Transportation industry average (3x).


Next Steps

Future Growth

How is Werner Enterprises forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WERN's forecast earnings growth (12.2% per year) is above the savings rate (2.2%).

Earnings vs Market: WERN's earnings (12.2% per year) are forecast to grow slower than the US market (22.6% per year).

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

Revenue vs Market: WERN's revenue (6.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: WERN's revenue (6.2% 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 (14.3%).


Next Steps

Past Performance

How has Werner Enterprises performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WERN has high quality earnings.

Growing Profit Margin: WERN's current net profit margins (6.2%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: WERN's earnings have grown by 12.7% 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 (-17.5%) over the past year, making it difficult to compare to the Transportation industry average (-18.3%).


Return on Equity

High ROE: WERN's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Werner Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: WERN's short term assets ($431.6M) exceed its short term liabilities ($249.6M).

Long Term Liabilities: WERN's short term assets ($431.6M) do not cover its long term liabilities ($693.7M).


Debt to Equity History and Analysis

Debt Level: WERN's debt to equity ratio (14.4%) is considered satisfactory.

Reducing Debt: WERN's debt to equity ratio has increased from 8.7% to 14.4% over the past 5 years.

Debt Coverage: WERN's debt is well covered by operating cash flow (257.9%).

Interest Coverage: WERN's interest payments on its debt are well covered by EBIT (37.1x coverage).


Balance Sheet


Next Steps

Dividend

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

0.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WERN's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: WERN's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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 (16.6%), WERN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WERN's dividends in 3 years are forecast to be thoroughly covered by earnings (12.9% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Derek Leathers (50 yo)

4.25yrs

Tenure

US$3,522,013

Compensation

Mr. Derek J. Leathers has been the Chief Executive Officer of Werner Enterprises Inc. since May 10, 2016, President since May 2011 and also has been its Vice Chairman since May 31, 2020. Mr. Leathers serve ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD3.52M) is below average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Derek's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Clarence Werner
Founder & Chairman4.25yrsUS$1.79m0.0045%
$ 137.2k
Derek Leathers
President4.25yrsUS$3.52m0.31%
$ 9.4m
John Steele
Executive VP24.58yrsUS$716.00k0.080%
$ 2.4m
H. Nordlund
Senior Executive VP & COO4.25yrsUS$1.13m0.095%
$ 2.9m
Jim Schelble
Executive VP & Chief Administrative Officer4.25yrsUS$772.20k0.084%
$ 2.5m
James Johnson
Executive VP10.08yrsUS$783.32k0.10%
$ 3.1m
Daragh Mahon
Executive VP & Chief Information Officer0.17yrno datano data
Nathan Meisgeier
Executive VP & Chief Legal Officer2.5yrsno data0.017%
$ 517.9k
Fred Thayer
Director of Corporate Communications14.17yrsno datano data
Skip Schollaert
Senior Vice President of Brokerage & Intermodal Operationsno datano datano data
Craig Callahan
Executive VP & Chief Commercial Officerno datano data0.030%
$ 916.5k
Chad Dittberner
Senior Vice President Van & Expedited Divisionno datano datano data

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: WERN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clarence Werner
Founder & Chairman4.25yrsUS$1.79m0.0045%
$ 137.2k
Derek Leathers
President4.25yrsUS$3.52m0.31%
$ 9.4m
Michael Gallagher
Independent Director3yrsUS$100.00k0.0091%
$ 275.3k
Gerald Timmerman
Independent Director4.25yrsUS$100.00k0.026%
$ 793.5k
Kenneth Bird
Independent Director18.58yrsUS$100.00k0.019%
$ 579.2k
Patrick Jung
Independent Director17.58yrsUS$125.00k0.020%
$ 618.5k
Diane Duren
Independent Director3.25yrsUS$105.00k0.020%
$ 618.5k
Jack Holmes
Independent Director2yrsUS$100.00k0.0069%
$ 209.7k
Dwaine Peetz
Independent Director9.25yrsUS$100.00k0.039%
$ 1.2m

4.3yrs

Average Tenure

72yo

Average Age

Experienced Board: WERN's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WERN insiders have only sold shares 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

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$3.022b
  • Shares outstanding: 69.10m
  • Website: https://www.werner.com

Number of Employees


Location

  • Werner Enterprises, Inc.
  • 14507 Frontier Road
  • PO Box 45308
  • Omaha
  • Nebraska
  • 68145-0308
  • 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 Analysis2020/08/06 01:12
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
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.