Wabash National Corporation specializes in the design and production of dry freight vans, refrigerated vans, platform trailers, bulk tank trailers, intermodal equipment, engineered products, and composite products. The company was founded in 1985 and is based in Lafayette, Indiana.
WNC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WNC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that WABASH NATIONAL Corp ranked in the 24th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for WNC, they are:
The company's compound free cash flow growth rate over the past 5.8 years comes in at -0.07%; that's greater than only 19.69% of US stocks we're applying DCF forecasting to.
WABASH NATIONAL Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.38. This coverage rate is greater than that of merely 23.61% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, WABASH NATIONAL Corp experienced a tax rate of about 60% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 97.1% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of WABASH NATIONAL Corp? See AEGN, IEA, APG, DCO, and NNBR.
Preliminary net orders for trailers in April fell to just 300 bookings, the lowest level since 1990.The 95% drop in orders from March and 98% decline from April 2019 put orders during the past 12 months at 162,000, according to FTR Transportation Intelligence.The impact of the health crisis on manufacturing and an already slowing market for equipment combined to cause many fleets to effectively close their order books and cancel or push out orders scheduled for 2020 delivery."There are still way too many uncertainties present for fleets to buy new trailers in large numbers," said Don Ake, FTR vice president of commercial vehicles. "They will take the minimum number of trailers needed in the short-run and then increase quantities dependent on the speed and size of the recovery. Downward ...
Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 Wabash National earnings conference call. With me today are Brent Yeagy, president and chief executive officer; and Mike Pettit, chief financial officer.