Werner Enterprises (WERN) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: 1.97%
• Average Volume (3M): 984.82K
• Price to Earnings (P/E): 52.2
• Beta (1Y): 0.80
• Revenue Growth: -7.71%
• EPS Growth: -69.05%
• Country: US
• Employees: 12,896
• Sector: Industrials
• Sector Strength: 70
• Industry: Trucking
• EPS (TTM): 0.55
• Shares Outstanding: 61,924,797
• 10 Day Avg. Volume: 1,146,468
• 30 Day Avg. Volume: 984,820
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.60
• Price to Cash Flow (P/CF): 6.40
• P/FCF Ratio: 6.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.64
• Price Target Upside: 18.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

Overall, Werner Enterprises is experiencing stable financial health with strong equity and manageable debt but faces significant challenges in profitability and free cash flow. Technical indicators suggest bearish momentum, and the valuation appears stretched. Although the earnings call highlights some operational improvements, the decrease in revenues and high costs weigh heavily. Corporate events provide minor positive offsets.

Positive Factors

Cost Management

WERN continues to make progress with cost savings, realizing $40M of savings YTD through Q324, and increased the 2024 savings target slightly.

Pricing Environment

WERN sees some improvements in the pricing environment heading into bid season and sounded cautiously optimistic that momentum could continue.

Revenue Growth

Tech rollout driving revenue synergies with runway into '26.

Negative Factors

Earnings Performance

Shares likely trade lower tomorrow due to challenging Q3 results, sustained industry headwinds, and elevated non-core costs.

Healthcare Costs

Werner expects modest sequential improvement to results in 4Q, which may not be enough to fully offset elevated healthcare costs.

Logistics Challenges

Q324 EPS was below expectations, with weaker revenue and profitability primarily in Logistics contributing to the earnings miss.

Werner Enterprises Business Overview & Revenue Model

Company Description

Werner Enterprises, Inc., a transportation and logistics company, engages in transporting truckload shipments of general commodities in interstate and intrastate commerce in the United States, Mexico, and internationally. It operates through Truckload Transportation Services and Werner Logistics segments. The Truckload Transportation Services segment operates medium-to-long-haul van fleet that transports various consumer nondurable products and other commodities in truckload quantities using dry van trailers; the expedited fleet, which offers time-sensitive truckload services using driver teams; regional short-haul fleet that provides comparable truckload van service in the United States; and temperature controlled fleet, which offers truckload services for temperature sensitive products using temperature-controlled trailers. It transports retail store merchandise, consumer products, food and beverage products, and manufactured products. The Werner Logistics segment provides non-asset-based transportation and logistics services, including truck brokerage; logistics management services and solutions; rail transportation through alliances with rail and drayage providers; and residential and commercial deliveries of large or heavy items using liftgate straight truck. As of December 31, 2021, the company had a fleet of 8,340 trucks, which included 8,050 company-operated, as well as 290 owned and operated by independent contractors;27,225 company-owned trailers that comprised dry vans, flatbeds, temperature-controlled, and other trailers; and 55 intermodal drayage trucks. Werner Enterprises, Inc. was founded in 1956 and is headquartered in Omaha, Nebraska.

How the Company Makes Money

Werner Enterprises generates revenue primarily through its core transportation and logistics services. The company's key revenue streams include dedicated services, where Werner provides customized transportation solutions for specific customers, and one-way truckload services, which involve moving freight for various customers on a per-load basis. Additionally, Werner earns income through its logistics segment, offering freight management, brokerage, and intermodal services that connect different modes of transportation. Significant partnerships with major retailers, manufacturers, and supply chain partners enhance Werner's market presence and contribute to its earnings. The company's investment in advanced technology and a strong fleet management system also play a crucial role in optimizing operations and maximizing profitability.

Werner Enterprises Financial Statement Overview

Summary

Werner Enterprises shows a stable financial position with strong equity and manageable debt levels. However, the company faces challenges with fluctuating net income and negative free cash flow, which need addressing to enhance financial flexibility.

Income Statement

Werner Enterprises has seen fluctuating revenue with a slight decline in 2024 compared to 2023. The company's gross profit margin remains strong, though net profit margins have been inconsistent, reflecting challenges in cost management or market conditions. EBIT and EBITDA margins indicate operational efficiency, but with room for improvement. Overall, while the company maintains decent profitability, volatility in net income is a concern.

Balance Sheet

The balance sheet shows a solid equity base, with a consistent equity ratio indicating stability. The debt-to-equity ratio has improved over the years, suggesting effective debt management and reducing leverage risk. Return on equity has been volatile, reflecting the fluctuations in net income, but the overall financial health remains stable.

Cash Flow

The cash flow statement indicates challenges in generating free cash flow, with negative values in recent years due to high capital expenditures. However, operating cash flow remains strong compared to net income, suggesting robust cash-generating operations despite the negative free cash flow trend. The company needs to enhance its free cash flow to improve financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.03B	3.28B	3.29B	2.73B	2.37B
	Gross Profit
338.63M	423.65M	521.59M	477.93M	460.89M
	EBIT
66.15M	176.42M	44.50M	42.42M	-34.38M
	EBITDA
372.10M	480.82M	616.54M	517.92M	479.45M
	Net Income Common Stockholders
34.23M	112.38M	241.26M	259.05M	169.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.75M	61.72M	107.24M	54.20M	29.33M
	Total Assets
3.05B	3.16B	3.10B	2.59B	2.16B
	Total Debt
20.00M	648.75M	693.75M	427.50M	200.00M
	Net Debt
-20.75M	587.03M	586.51M	373.30M	170.67M
	Total Liabilities
1.56B	1.59B	1.61B	1.23B	961.64M
	Stockholders Equity
1.46B	1.53B	1.44B	1.33B	1.20B
Cash Flow		Free Cash Flow
-84.06M	-124.42M	-58.54M	-38.03M	32.84M
	Operating Cash Flow
329.73M	474.37M	448.71M	332.82M	445.91M
	Investing Cash Flow
-241.45M	-434.94M	-514.33M	-397.30M	-263.27M
	Financing Cash Flow
-105.72M	-87.07M	118.03M	89.67M	-185.96M

Werner Enterprises Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WERN, the sentiment is Negative. The current price of 28.48 is below the 20-day moving average (MA) of 29.10, below the 50-day MA of 31.52, and below the 200-day MA of 35.84, indicating a bearish trend. The MACD of -0.99 indicates Negative momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 36.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WERN.

Werner Enterprises Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	63 Neutral	$1.47B	8.71	13.56%	0.77%	-5.61%	40.21%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
KNX	61 Neutral	$6.46B	54.98	1.66%	1.65%	3.76%	-46.10%
SNDR	57 Neutral	$3.94B	33.80	3.94%	1.70%	-3.79%	-50.29%
WERN	54 Neutral	$1.77B	52.21	2.29%	1.97%	-7.71%	-69.05%
HTLD	52 Neutral	$677.71M	―	-3.52%	0.95%	-13.25%	-301.55%
RXO	45 Neutral	$2.24B	―	-25.84%	―	15.86%	-6302.63%

Werner Enterprises Corporate Events

Werner Enterprises to Attend BofA Investment Conference

On April 9, 2025, Werner Enterprises announced its participation in two upcoming investment conferences: the BofA Industrials, Transportation & Airlines Key Leaders Conference on May 15, 2025, and the Wolfe Research Small & Mid-Cap Conference on June 5, 2025, both in New York. These events will feature investor meetings and presentations by key executives, with live webcasts available on the company’s website. This participation highlights Werner’s commitment to engaging with investors and showcasing its strategic initiatives and industry positioning.

Spark’s Take on WERN Stock

According to Spark, TipRanks’ AI Analyst, WERN is a Neutral.

Overall, Werner Enterprises is experiencing stable financial health with strong equity and manageable debt but faces significant challenges in profitability and free cash flow. Technical indicators suggest bearish momentum, and the valuation appears stretched. Although the earnings call highlights some operational improvements, the decrease in revenues and high costs weigh heavily. Corporate events provide minor positive offsets.

To see Spark’s full report on WERN stock, click here.

Werner Enterprises Revises Executive Compensation Plans

On February 13, 2025, Werner Enterprises’ Compensation Committee approved new compensation arrangements for its executive officers, including base salaries, and awards of restricted and performance stock. These arrangements, under the 2023 Long-Term Incentive Plan, include specific vesting conditions tied to the company’s performance metrics over a three-year period. The announcement reflects Werner Enterprises’ strategic focus on aligning executive incentives with company performance goals, impacting potential earnings and stakeholder returns.

Werner Enterprises to Attend Key Investment Conferences

On January 21, 2025, Werner Enterprises announced its participation in three major investment conferences in February 2025, including the Stifel, Citi, and Barclays conferences in Miami. These events present an opportunity for the company to engage with investors and showcase its strategic initiatives, potentially strengthening its industry position and stakeholder relations.