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Schneider National Inc (SNDR)
NYSE:SNDR
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Schneider National
(NYSE:SNDR)57Neutral
Positive Factors
Acquisition Impact
Schneider National's acquisition of Cowan Systems increased its Dedicated fleet by 35%, boosting its Dedicated revenue to approximately $2 billion.
Growth Strategy
Management's cost actions and inorganic growth strategy could lead to material benefits and EPS uplift.
Negative Factors
Deal Valuation
Revised assumptions show Schneider National is paying a higher multiple for Cowan Systems than initially estimated, suggesting a less favorable deal valuation.
Schneider National (SNDR) vs. S&P 500 (SPY)
Market Cap
$4.45B
Dividend Yield1.5%
Average Volume (3M)795.46K
Price to Earnings (P/E)38.2
Beta (1Y)0.59
Revenue Growth-3.79%
EPS Growth-50.29%
CountryUS
Employees17,300
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)0.66
Shares Outstanding92,458,180
10 Day Avg. Volume800,217
30 Day Avg. Volume795,460
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.84
Price to Cash Flow (P/CF)5.60
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.73Price Target Upside25.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Schneider National Business Overview & Revenue Model
Company DescriptionSchneider National Inc. provides transportation and logistics services. The firm's transportation solutions include van truckload, dedicated, regional, bulk, intermodal, brokerage, supply chain management, port logistics services and engineering and freight payment services. It operates through the following segments: Truckload, Intermodal and Logistics. The Truckload segment consists of freight transported and delivered with standard and specialty equipment by employed drivers in company trucks and by owner-operators. The Intermodal segment consists of door-to-door container on flat car service by a combination of rail and over-the-road transportation, in association with rail carrier partners. The Logistics segment consists of non-asset freight brokerage services, supply chain services and import/export services. The company was founded by A. J. Schneider in 1935 and is headquartered in Green Bay, WI.
How the Company Makes MoneySchneider National makes money primarily through its three main service offerings: Truckload, Intermodal, and Logistics. The Truckload segment generates revenue by providing standard, dedicated, and expedited truckload services. The Intermodal segment earns income by offering transportation solutions that combine rail and truck services, providing cost-effective and environmentally friendly options for long-haul freight. The Logistics segment includes brokerage, supply chain management, and warehousing services, allowing Schneider to earn fees by managing and optimizing transportation and supply chain operations for its clients. Additionally, Schneider National benefits from strategic partnerships with rail operators and other logistics companies, enhancing its service offerings and expanding its customer base. The company also leverages its investments in technology and data analytics to improve operational efficiency and customer service, further contributing to its revenue growth.
Schneider National Financial Statement Overview
Summary
Schneider National demonstrates financial stability with a strong balance sheet and solid cash flow generation. Although profitability margins have compressed, the company effectively manages costs and maintains a healthy equity position. The main challenges include revenue growth and improving return on equity.Income Statement
Schneider National has experienced fluctuating revenue trends, with a notable decrease from 2022 to 2024. The gross profit margin stands at approximately 35.7% for 2024, showing effective cost management. However, the net profit margin has decreased to 2.2%, indicating pressure on profitability. The EBIT and EBITDA margins are 3.1% and 11.0%, respectively, reflecting moderate operating performance.55
Neutral
Balance Sheet
The company maintains a solid equity position with an equity ratio of 60.5% in 2024, indicating financial stability. The debt-to-equity ratio is relatively low at 0.18, suggesting prudent leverage use. However, return on equity has decreased to 3.9%, which may concern investors seeking higher returns.70
Positive
Cash Flow
Operating cash flow remains strong, with a positive trajectory, reaching $686.1 million in 2024. The free cash flow to net income ratio is robust, indicating efficient cash generation. However, the free cash flow growth rate is affected by significant capital expenditures, which could constrain cash flow flexibility.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.29B | 5.50B | 6.60B | 5.61B | 4.55B | Gross Profit |
| 441.10M | 559.40M | 920.50M | 761.50M | 480.60M | EBIT |
| 165.20M | 296.40M | 263.60M | 268.90M | 7.00M | EBITDA |
| 582.50M | 709.80M | 963.60M | 850.70M | 587.00M | Net Income Common Stockholders |
| 117.00M | 238.50M | 457.80M | 405.40M | 211.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 165.50M | 159.60M | 385.70M | 244.80M | 395.50M | Total Assets |
| 4.93B | 4.56B | 4.32B | 3.94B | 3.52B | Total Debt |
| 526.80M | 302.10M | 215.10M | 270.30M | 306.80M | Net Debt |
| 409.20M | 199.70M | -170.60M | 25.50M | -88.70M | Total Liabilities |
| 1.95B | 1.60B | 1.48B | 1.51B | 1.46B | Stockholders Equity |
| 2.99B | 2.96B | 2.84B | 2.42B | 2.06B |
| Cash Flow | Free Cash Flow | |||
| 686.10M | -127.60M | 162.80M | 25.50M | 199.20M | Operating Cash Flow |
| 686.10M | 680.00M | 856.40M | 566.10M | 618.20M | Investing Cash Flow |
| -791.50M | -907.60M | -598.80M | -626.40M | -318.70M | Financing Cash Flow |
| 120.60M | -55.70M | -116.70M | -90.40M | -455.60M |
Schneider National Technical Analysis
Negative
25.33
Price Trends
28.64
Negative
29.31
Negative
27.22
Negative
Market Momentum
-0.96
Positive
24.78
Positive
9.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDR, the sentiment is Negative. The current price of 25.33 is below the 20-day moving average (MA) of 27.29, below the 50-day MA of 28.64, and below the 200-day MA of 27.22, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 24.78 is Positive, neither overbought nor oversold. The STOCH value of 9.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNDR.
Schneider National Risk Analysis
Schneider National disclosed 31 risk factors in its most recent earnings report. Schneider National reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Schneider National Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $37.19B | 31.94 | 27.94% | 0.60% | -0.88% | -2.79% | |
67 Neutral | $5.46B | 28.02 | 20.03% | 0.91% | -9.13% | -25.11% | |
65 Neutral | $15.76B | 28.37 | 14.22% | 1.10% | -5.79% | -20.32% | |
63 Neutral | $11.67B | 25.49 | 27.04% | 2.50% | 0.73% | 41.65% | |
62 Neutral | $7.76B | 66.01 | 1.66% | 1.34% | 3.76% | -46.10% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
57 Neutral | $4.45B | 38.20 | 3.94% | 1.50% | -3.79% | -50.29% |
* Industrials Sector Average
Performance Comparison
SNDR
Schneider National
25.33
2.99
13.38%
CHRW
CH Robinson
97.91
27.30
38.66%
JBHT
JB Hunt
160.04
-37.79
-19.10%
KNX
Knight Transportation
48.68
-5.92
-10.84%
LSTR
Landstar System
154.58
-25.09
-13.96%
ODFL
Old Dominion Freight
176.52
-39.98
-18.47%
Schneider National Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -14.94% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there are notable achievements such as the successful acquisition of Cowan Systems and strong performance in the Intermodal and Logistics segments, there are challenges in the Truckload network and rising insurance costs. The return to seasonality and safety improvements are positive signs, but the adjustment of the Logistics segment's margin target indicates ongoing pressures.Highlights
Cowan Systems Acquisition
Schneider completed the acquisition of Cowan Systems for $421 million, significantly expanding its dedicated truckload fleet. The acquisition is expected to bring $20 million to $30 million in annual synergies after year one.
Intermodal Segment Performance
Intermodal segment saw a 6% increase in revenue year-over-year, with volume growth and higher revenue per order. Operating income increased by $11 million, and the operating ratio improved to 93.8%.
Logistics Segment Profitability
Despite a 5% decrease in revenue, the Logistics segment achieved a 40% increase in operating income year-over-year due to effective net revenue management.
Safety Improvements
Schneider achieved significant reductions in DOT reportable accidents, reaching an all-time low accident frequency, displaying strong safety performance.
Return to Freight Market Seasonality
The fourth quarter showed signs of returning seasonality in the freight market, with solid retail and consumer product-driven volumes.
Lowlights
Truckload Network Challenges
The truckload network business faced profitability challenges, with increased competition and insurance expenses impacting results.
Insurance Cost Increases
Schneider experienced a $7 million impact from prior year accident reserves due to rising settlement costs and legal expenses, affecting insurance premiums.
Logistics Segment Margin Target Adjustment
The long-term margin target for the Logistics segment was adjusted from 5%-7% to 3%-5%, reflecting a shift towards traditional brokerage with lower margins.
Seasonal Auto Production Shutdowns
Extended seasonal auto production shutdowns partially offset solid retail and consumer product-driven volumes in the fourth quarter.
Company Guidance
During the call, Schneider provided guidance for the full year 2025, projecting adjusted earnings per share to be between $0.90 and $1.20, with an effective tax rate of 23% to 24%. Capital expenditures for 2025 are expected to range from $400 million to $450 million. The company noted that its recent acquisition of Cowan Systems was accretive to earnings per share in December 2024, and they anticipate $20 million to $30 million in annual synergies after the first year. In terms of segment performance, the Truckload segment's operating ratio stood at 96.5%, while Intermodal and Logistics segments showed improved operating ratios of 93.8% and 97.4%, respectively. Schneider emphasized its commitment to structural improvements, including optimizing capital allocation, managing customer freight allocation, delivering an effortless customer experience, and containing costs.Schneider National Corporate Events
Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Schneider National Expands with Cowan Systems Acquisition
Positive
Nov 25, 2024
Schneider National, Inc. is set to enhance its market presence with the acquisition of Cowan Systems, LLC for approximately $390 million, alongside additional real estate assets for $31 million. This strategic move will expand Schneider’s dedicated truckload fleet, integrating Cowan Systems’ 1,800 trucks and 7,500 trailers, and is expected to boost earnings per share within the first year. The acquisition, funded by a new $400 million credit facility and existing cash, aligns with Schneider’s customer-centric vision and promises to enhance value for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.