Schneider National Intrinsic Value Calculation – Schneider National’s Trading Conditions Pose Challenges, Limiting Upside Potential
December 28, 2023
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Schneider National ($NYSE:SNDR) is a major North American transportation and logistics company providing truckload, intermodal and logistics services. The company has faced challenging market conditions in recent months that have limited its potential upside. In particular, diesel fuel prices are high, competition is fierce, and the organization is facing difficulties finding qualified drivers. These challenging trading conditions have caused Schneider National to take a number of cost-saving and efficiency measures, including optimizing routes, modernizing its fleet and implementing new safety systems. Despite these efforts, Schneider National has not been able to keep up with demand for their services due to the market conditions. This has resulted in a decrease in revenues and has limited the potential upside of the stock.
In addition, the company is facing significant obstacles in recruiting and retaining truck drivers. This is due to an aging workforce, a lack of qualified personnel, and a shortage of available truckloads. These conditions have put further strain on Schneider National’s operations. Overall, Schneider National is facing significant challenges that are limiting its potential upside. The company is taking measures to improve efficiency and profitability, but the difficult market conditions remain a major obstacle. Investors should keep these conditions in mind when considering investing in Schneider National’s stock.
Market Price
Schneider National has recently been facing challenging trading conditions, limiting its potential upside. On Wednesday, the company’s stock opened at $25.8 but closed at $25.5 – a decrease of 1.2% from the previous day’s closing price. This downward trend reflects the current difficulties faced by the company and suggests that there may be limited upside potential in the near future. With these challenges to consider, investors may be hesitant to invest in Schneider National stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Schneider National. More…
| Total Revenues | Net Income | Net Margin |
| 5.69k | 321.2 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Schneider National. More…
| Operations | Investing | Financing |
| 764.2 | -1k | -51.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Schneider National. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.58k | 1.62k | 16.66 |
Key Ratios Snapshot
Some of the financial key ratios for Schneider National are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.6% | 14.4% | 7.6% |
| FCF Margin | ROE | ROA |
| 9.0% | 9.1% | 5.9% |
Analysis – Schneider National Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of SCHNEIDER NATIONAL‘s wellbeing. After looking at various metrics such as cash flow, asset value, liquidity, growth prospects and risk profile, we have come up with a fair value of the stock, which is estimated to be around $24.6. This value was calculated using our proprietary Valuation Line algorithm. Currently, SCHNEIDER NATIONAL stock is trading at $25.5 – a fair price that is slightly overvalued by 3.8%. This indicates that there may be some potential for investors to purchase the stock at a slight discount. However, it is important to note that the market can change quickly and further analysis should be done before making any investment decisions. More…
Peers
It has a wide variety of competitors, including Xinjiang Tianshun Supply Chain Co Ltd, Shanghai Ace Investment & Development Co Ltd, and Deppon Logistics Co Ltd.
– Xinjiang Tianshun Supply Chain Co Ltd ($SZSE:002800)
Xinjiang Tianshun Supply Chain Co Ltd is a company that operates in the supply chain industry. The company has a market cap of 2.48B as of 2022 and a return on equity of 8.22%. The company has a strong market position and is a well-known player in the industry. The company’s main business is the provision of supply chain services to businesses. The company has a diversified client base and a strong track record. The company is headquartered in Xinjiang, China.
– Shanghai Ace Investment & Development Co Ltd ($SHSE:603329)
Shanghai Ace Investment & Development Co Ltd is a 3B market cap company with an ROE of 18.67%. The company is involved in the development and management of real estate projects.
– Deppon Logistics Co Ltd ($SHSE:603056)
Deppon Logistics Co Ltd is a leading Chinese logistics company with a market cap of 18.11B as of 2022. The company provides comprehensive logistics services to businesses and individuals in China, including transportation, warehousing, distribution, and e-commerce logistics. The company has a strong focus on customer service and has a reputation for providing high-quality, reliable logistics services. Deppon Logistics Co Ltd has a return on equity of 4.31%. The company is well-positioned to continue its growth in the Chinese logistics market.
Summary
Schneider National Inc. is a leading provider of transportation, logistics, and supply chain management services. Recent trading conditions have been challenging for Schneider National, leading analysts to limit their expectation of upside in the near future. Despite early success in the trucking industry, recent market conditions have put pressure on the company’s bottom line. The company is facing increased competition in the industry, and lower demand from customers due to the coronavirus pandemic is affecting profits.
Rising fuel prices and wage costs are further impacting the company’s financial performance. Schneider National must closely monitor the latest market developments and take appropriate steps to remain competitive in order to achieve growth in the long term.
