Werner Enterprises engages in transporting truckload shipments of general commodities in interstate and intrastate commerce. The company operates in two segments, Truckload Transportation Services and Value Added Services. The company was founded in 1956 and is based in Omaha, Nebraska.
WERN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Werner Enterprises Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Werner Enterprises Inc ranked in the 98th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 26806% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. As for the metrics that stood out in our discounted cash flow analysis of Werner Enterprises Inc, consider:
In the past 5.01 years, Werner Enterprises Inc has a compound free cash flow growth rate of 2.27%; that's better than 96.05% of cash flow producing equities in the Industrials sector, where it is classified.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 16.01% of the free cash flow producing stocks we're observing.
WERN'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 42.83% of tickers in our DCF set.
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 WERN, try SMHI, SKYW, PRIM, TCOM, and BBU.
SAN DIEGO, Sept. 16, 2020 /PRNewswire/ -- Platform Science, a leading enterprise IoT fleet management platform, today announces its partnership with Werner Enterprises (NASDAQ: WERN) and the integration of the company's innovative technology within Werner's fleet of nearly 8,000 trucks….
LINK TO FULL REPORTWerner Enterprises, Inc. (NASDAQ: WERN) reported adjusted earnings per share of 62 cents for the second quarter, significantly better than the 40-cents-per-share consensus estimate and only a penny light of last year's result.The result excluded 4 cents per share in incremental depreciation expense associated with a change in the lifespan of trucks that will be sold this year and a smaller amount in accrued insurance and claims expense for a prior accident.The transportation and logistics provider reported a 9.3% year-over-year decline in consolidated revenue to $569 million, largely offset by a 70-basis-point adjusted operating margin improvement to 10.1%."Our results in second quarter 2020 reflect freight demand in One-Way Truckload and Logistics that was l...
"Encouraging conversations with customers" was one of the highlights from Werner Enterprises, Inc. (NASDAQ: WERN) earnings call with analysts Wednesday evening. Werner President and CEO Derek Leathers said demand is strong throughout the country, particularly in the West, as truck supply is tight.The company reported adjusted earnings per share (EPS) of 62 cents for the second quarter, significantly better than the 40-cents-per-share consensus estimate.The Omaha, Nebraska-based truckload (TL) carrier raised its outlook for rate per total mile in its one-way segment. The new guidance calls for the metric to range between down 1% to up 2% year-over-year for the back half of 2020.When pressed why the guidance isn't higher, Leathers said the company took a conservative approac...