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Wabash National Corp (WNC)
NYSE:WNC
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Wabash National
(NYSE:WNC)
51Neutral
Wabash National (WNC) vs. S&P 500 (SPY)
Market Cap
$482.23M
Dividend Yield2.82%
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-23.25%
EPS Growth-232.48%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength69
IndustryIndustrial Machinery
Share Statistics
EPS (TTM)-6.53
Shares Outstanding42,449,837
10 Day Avg. Volume1,063,810
30 Day Avg. Volume1,061,634
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.25
Price to Cash Flow (P/CF)1.50
P/FCF Ratio1.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside62.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
Wabash National Business Overview & Revenue Model
Company DescriptionWabash National Corporation (WNC) is a leading American manufacturer of transportation solutions, primarily focused on designing, manufacturing, and marketing a diverse range of products, including trailers, truck bodies, and specialized transportation equipment. The company operates within the transportation and logistics sectors, providing innovative solutions to improve the efficiency and performance of transportation networks.
How the Company Makes MoneyWabash National makes money through the sale of its diverse portfolio of transportation products. The company's key revenue streams include the manufacturing and sale of dry freight vans, refrigerated vans, flatbed trailers, tank trailers, and other specialized trailers and equipment. Additionally, Wabash National generates income from its diversified business units, which produce composite panels and components used in various industrial applications. The company benefits from significant partnerships with major transportation and logistics companies, leveraging these relationships to drive sales and expand its market reach. Wabash National's earnings are bolstered by its commitment to innovation, which allows it to meet evolving customer needs and maintain a competitive edge in the industry.
Wabash National Financial Statement Overview
Summary
Wabash National is facing significant financial challenges, with declining revenues and profitability impacting its income statement. The balance sheet reveals high leverage, which could increase financial risk, though some stability is seen in the equity ratio. Cash flow remains a relative strength, with positive free cash flow providing some operational resilience. The company must address its revenue and profitability issues to improve its financial health and reduce reliance on debt.Income Statement
Wabash National has faced challenges with its revenue and profitability. The revenue has decreased from $2.54 billion in 2023 to $1.95 billion in 2024, indicating a significant decline. The company also reported a negative net income of $284 million in 2024, compared to a profit of $231 million in 2023. This resulted in a negative net profit margin and EBIT margin for 2024. The declining revenue and negative profitability metrics highlight the struggles the company is encountering in maintaining its financial performance.45
Neutral
Balance Sheet
The company's balance sheet shows a debt-to-equity ratio of approximately 2.1 in 2024, indicating a high level of leverage which may pose a risk. However, the equity ratio stands at 13.4%, suggesting a moderately stable equity base relative to its total assets. The return on equity has turned negative in 2024 due to net losses, which is a concern. Overall, while the company maintains some equity stability, the high leverage and negative ROE are notable weaknesses.60
Neutral
Cash Flow
Wabash National's operating cash flow was positive at $117 million in 2024, though a significant drop from $320 million in 2023. Free cash flow was also positive, indicating some operational efficiency despite financial challenges. The operating cash flow to net income ratio is not ideal due to the negative net income, but the company has managed to maintain positive cash flows, which is a strength in uncertain times.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.95B | 2.54B | 2.50B | 1.80B | 1.48B | Gross Profit |
| 265.07M | 498.19M | 322.69M | 196.47M | 159.75M | EBIT |
| -356.10M | 311.95M | 166.64M | 51.99M | 20.54M | EBITDA |
| -356.10M | 359.86M | 214.25M | 73.26M | -37.05M | Net Income Common Stockholders |
| -284.07M | 231.25M | 112.26M | 1.16M | -97.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 115.48M | 179.27M | 58.24M | 71.78M | 217.68M | Total Assets |
| 1.41B | 1.36B | 1.20B | 1.11B | 1.16B | Total Debt |
| 397.14M | 405.51M | 401.94M | 428.37M | 448.36M | Net Debt |
| 281.66M | 226.24M | 343.69M | 356.60M | 230.68M | Total Liabilities |
| 1.22B | 812.72M | 805.40M | 781.53M | 756.59M | Stockholders Equity |
| 188.83M | 549.50M | 397.61M | 325.54M | 404.88M |
| Cash Flow | Free Cash Flow | |||
| 45.08M | 221.51M | 67.00M | -56.58M | 104.00M | Operating Cash Flow |
| 117.27M | 319.61M | 124.08M | -7.47M | 124.13M | Investing Cash Flow |
| -94.79M | -106.04M | -55.30M | -27.08M | -3.02M | Financing Cash Flow |
| -86.27M | -92.54M | -82.31M | -111.35M | -43.96M |
Wabash National Technical Analysis
Negative
11.09
Price Trends
14.34
Negative
16.47
Negative
18.26
Negative
Market Momentum
-0.86
Negative
38.41
Neutral
68.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WNC, the sentiment is Negative. The current price of 11.09 is below the 20-day moving average (MA) of 11.85, below the 50-day MA of 14.34, and below the 200-day MA of 18.26, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 68.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WNC.
Wabash National Risk Analysis
Wabash National disclosed 31 risk factors in its most recent earnings report. Wabash 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
Wabash 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $54.96B | 13.99 | 24.93% | 1.17% | -4.29% | -9.76% | |
72 Outperform | $2.33B | 17.15 | 10.42% | 4.70% | -1.15% | 121.43% | |
68 Neutral | $6.21B | 9.37 | 17.34% | 1.96% | 11.36% | 13.78% | |
62 Neutral | $4.19B | 21.79 | 5.13% | 2.39% | -8.45% | -25.41% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
52 Neutral | $2.08B | 15.36 | 17.42% | 2.99% | 3.80% | 182.70% | |
51 Neutral | $482.23M | ― | -76.95% | 2.82% | -23.25% | -232.48% |
* Industrials Sector Average
Performance Comparison
WNC
Wabash National
11.09
-15.88
-58.88%
LCII
LCI Industries
91.18
-16.44
-15.28%
HNI
HNI
44.00
2.08
4.96%
OSK
Oshkosh
95.58
-18.42
-16.16%
PCAR
Paccar
102.33
-9.09
-8.16%
THO
Thor Industries
78.44
-22.30
-22.14%
Wabash National Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -29.09% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
Wabash demonstrated resilience and strategic growth initiatives in 2024, particularly in Parts & Services and strategic partnerships, while facing challenges such as a weak Q4 financial performance and ongoing legal issues. The company's strong liquidity and share repurchase program are notable positives, but freight market weakness and legal uncertainties present challenges for 2025.Highlights
Parts & Services Growth
In 2024, Wabash made significant strides in growing its Parts & Services revenue streams, including the expansion of its preferred partner network and the successful upfitting of over 1,100 truck bodies.
Strategic Initiatives and Innovations
Wabash has been investing in strategic partnerships and innovations such as the Trailers as a Service partnership with Kodiak and the Smart Crossroads initiative with Purdue University, aiming to transform logistics ecosystems.
Strong Liquidity Position
Wabash ended 2024 with a liquidity of $422 million and a net debt leverage ratio of 1.7 times, indicating strong financial health.
Share Repurchase Program
Wabash repurchased approximately 2.9 million shares in 2024, reducing its share count by about 6% and over 12 million shares over the past five years, demonstrating a commitment to returning value to shareholders.
Lowlights
Fourth Quarter Financial Performance
In Q4 2024, Wabash reported a net loss of $1 million or negative $0.02 per diluted share, with a gross margin of 10.3% and operating margin of 0.9%, indicating weaker than expected financial performance.
Legal Verdict Impact
Wabash faced an adverse legal verdict with an aggregate liability of $462 million related to a product liability trial, leading to elevated legal expenses expected to continue in 2025.
Freight Market Weakness
The demand for dry vans was impacted by freight market weakness, affecting Wabash's Transportation Solutions segment and leading to lower shipments in Q4 2024.
Company Guidance
During the Wabash Fourth Quarter 2024 Earnings Call, the company provided guidance for 2025, projecting revenue between $1.9 billion and $2.1 billion, with a midpoint of $2 billion. They anticipate an EPS range of $0.85 to $1.05, with a midpoint of $0.95. For the first quarter of 2025, revenue is expected to be between $420 million and $450 million, with an EPS range of negative $0.20 to negative $0.30. The company highlighted strategic initiatives in its Parts & Services segment, projecting significant growth and emphasizing the expansion of their Wabash Marketplace and preferred partner network. Additionally, they discussed capital expenditures planned between $50 million and $60 million in 2025, with an emphasis on supporting growth initiatives, including the Trailers as a Service (TaaS) program.Wabash National Corporate Events
Executive/Board Changes
Wabash National Announces Executive Leadership Changes
Neutral
Jan 15, 2025
Wabash National Corporation announced changes in its executive leadership team effective January 15, 2025. Kevin J. Page will transition from his role as Senior Vice President, Chief Commercial Officer, to a Senior Advisor role until June 1, 2025, ensuring a smooth transition. Donald Winston will move from Senior Vice President, Global Operations, to Chief Operating Officer, bringing extensive manufacturing leadership experience. Drew Schwartzhoff will shift from Senior Vice President, Strategic Marketing, to Chief Commercial Officer, with a strong background in marketing and business leadership.
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.