Forward Air Corporation provides surface transportation and related logistics services. The company operates in three segments: Forward Air (Forward Air); Forward Air Solutions (FASI); and Total Quality (TQI). The company was founded in 1981 and is based in Greeneville, Tennessee.
FWRD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Forward Air Corp. To summarize, we found that Forward Air Corp ranked in the 50th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 17.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Forward Air Corp ended up being:
FWRD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 30.83% of tickers in our DCF set.
Forward Air Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 23.03. This coverage rate is greater than that of 89.1% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Forward Air Corp experienced a tax rate of about 21% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 84.83% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FWRD, try AZZ, LMT, MIDD, TGH, and AIMC.
Forward Air (FWRD) to acquire the assets of CLW Delivery, for $5.5M.CLW generates $20 million in annual revenue. The transaction will be funded from cash on hand and will close in October 2020. The acquisition of CLW supports the Company’s strategic growth plan by expanding the footprint of Forward’s Final...
Forward Air (NASDAQ: FWRD ) announced that it has acquired another last-mile provider to build out its network. This time the Greeneville, Tennessee-based trucking company had to travel only 30 miles Northeast to acquire Johnson City, Tennessee-based CLW Delivery Inc . The Wednesday press release said the $5.5 million deal will be funded with cash on hand and close in October. CLW specializes in final-mile delivery and in-home installation for retailers and manufacturers. The outfit generates $20 million in annual revenue. Forward expects the deal to expand its final-mile footprint to include another 14 markets. "Our Final Mile business is a key area of growth for Forward. CLW offers a unique opportunity to expand our Final Mile service offering by stretching into customized installatio...
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Forward Air Corporation (NASDAQ: FWRD) (the “Company or “Forward”) is executing a growth strategy that involves organic infrastructure investments, such as the ongoing LTL network expansion, as well as inorganic investments, including acquisitions of complementary businesses. As part of the inorganic growth strategy, Forward today announced that it has entered into an agreement to acquire the assets of CLW Delivery, Inc. (CLW), a privately held final mile pr
Forward Air Corporation (FWRD) Q2 2020 Earnings Conference Call July 31, 2020 09:00 AM ET Company Participants Tom Schmitt - Chief Executive Officer Mike Morris - Chief Financial Officer Conference Call Participants Jack Atkins - Stephens Zachary Haggerty - KeyBanc Capital Markets Ben Hartford - Baird Scott Group - Wolfe...
Forward Air Corporation (NASDAQ: FWRD ) will continue to pursue the less-than-truckload (LTL) market more heavily now that the worst of the pandemic-related freight declines appear to be in the rearview mirror. On its second-quarter earnings call with analysts on Friday, Chairman, President and CEO Tom Schmitt said he sees "more Savannahs to come," referring to the company's recent expansion outside of its normal airport-to-airport transportation network. On July 13, the Greeneville, Tennessee-based trucking company announced it would offer its first traditional LTL service . Forward has historically specialized in the movement of airfreight by ground through scheduled and expedited LTL service for airlines and cargo carriers as well as freight forwarders. The company runs linehaul serv...