YRC Worldwide provides various transportation services primarily in North America. Its YRC Freight segment offers various services to transport industrial, commercial, and retail goods, such as apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products or components. The company was founded in 1924 and is based in Overland Park, Kansas.
YRCW Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for YRCW, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that YRC Worldwide Inc ranked in the 97th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 11975.5%; returns of such proportions should be viewed with some skepticism, though. The most interesting components of our discounted cash flow analysis for YRC Worldwide Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 0.39 -- which is good for besting only 23.46% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
11% of the company's capital comes from equity, which is greater than just 4.37% of stocks in our cash flow based forecasting set.
YRC Worldwide Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive 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 YRC Worldwide Inc? See BBU, TCOM, PRIM, SRT, and CYD.
Stifel Nicolaus initiated coverage of YRC Worldwide ([[YRCW]] -14.0%) with a Hold rating and price target of $5 indicating a 12% upside from current level; rating indicates expectations for volatility in trading and uncertainty around execution.Wall Street Rating is Bullish and SA Authors Rating is Neutral.Analyst David Ross states that...
It appears that the Department of the Treasury's proactive attempt to respond to the Congressional Oversight Commission's concerns regarding the rationale behind the $700 million loan to less-than-truckload (LTL) carrier YRC Worldwide (NASDAQ: YRCW ) will not suffice. In the third report from the commission overseeing the distribution of funds provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to businesses struggling from the impact of the pandemic, several queries were laid out as to why a lending package was provided to YRC . Treasury Department Explains Rationale For Loan On July 30, the Treasury Department proactively penned a letter to the commission addressing the rationale. A sticking point for the commission was YRC being designated as a "business-cr...
Outstanding Shipping and Customer Service Earn YRC Award From 3PL Service ProviderOVERLAND PARK, Kan., July 30, 2020 (GLOBE NEWSWIRE) -- (NASDAQ: YRCW) YRC Freight has received the FreightCenter 2019 Diamond Partner of the Year award. FreightCenter, a third-party logistics service provider, selected YRC Freight for this honor because of the company’s ability to deliver flexibility and reliability to supply chains and its leadership as an LTL freight services provider. “This recognition is an outstanding honor from FreightCenter, as our company’s work aligns perfectly with FreightCenter’s mission to create value for customers through custom shipping solutions,” said Jason Bergman, YRCW Chief Commercial Officer and HNRY Logistics President. “I’m extremely proud of YRCW companies’ employe...