Investors Urged to Avoid Werner Enterprises
December 19, 2023
🌧️Trending News
Investors should be wary of Werner Enterprises ($NASDAQ:WERN) at this time. Werner is a freight transportation and logistics company based in Omaha, Nebraska that specializes in truckload, freight management, and temperature-controlled transportation services. The company has been struggling financially for the past few years, and the current stock price does not reflect the company’s true value. The company has been reporting steadily declining revenues and profits over the last several quarters, and has also seen an increase in its debt levels.
Additionally, the company is facing increased competition from other trucking companies as well as from newer tech companies offering similar services. Because of these factors, investing in Werner Enterprises at this time is not recommended.
Market Price
On Monday, investors were warned to avoid WERNER ENTERPRISES stock. The stock opened at $42.3 and closed at $41.1, representing a 2.4% decrease from the last closing price of $42.1. This is a significant drop that should be taken into account by investors before making any decisions regarding this stock. In light of this news, it is advised that investors remain cautious when making decisions about WERNER ENTERPRISES stock and consider other investment options instead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Werner Enterprises. More…
| Total Revenues | Net Income | Net Margin |
| 3.32k | 148.97 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Werner Enterprises. More…
| Operations | Investing | Financing |
| 462.97 | -514.33 | 118.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Werner Enterprises. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.19k | 1.64k | 23.86 |
Key Ratios Snapshot
Some of the financial key ratios for Werner Enterprises are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.9% | 2.3% | 6.9% |
| FCF Margin | ROE | ROA |
| -5.4% | 9.5% | 4.5% |
Analysis
As GoodWhale, we conducted an analysis of WERNER ENTERPRISES‘s wellbeing. Our Star Chart showed that WERNER ENTERPRISES had a high health score of 8/10 overall, indicating that it had enough cashflows and debt to sustain future operations in times of crisis. We classified WERNER ENTERPRISES as a ‘cow’ company – one that has the track record of paying out consistent and sustainable dividends. This makes WERNER ENTERPRISES attractive to dividend-seeking investors, as well as those looking for stability in their portfolio. Additionally, our analysis found that WERNER ENTERPRISES was strong in dividend but medium in asset, growth and profitability. For investors seeking stability and steady income, this makes WERNER ENTERPRISES an attractive option. More…
Peers
The trucking industry is extremely competitive. Companies are always vying for new customers and new contracts. Werner Enterprises Inc is no different. It competes against some of the largest trucking companies in the world, including Knight-Swift Transportation Holdings Inc, ArcBest Corp, and XPO Logistics Inc. These companies are all fighting for a piece of the pie, and each one has its own unique advantages and disadvantages.
– Knight-Swift Transportation Holdings Inc ($NYSE:KNX)
Knight-Swift Transportation is one of the largest trucking companies in North America. It has a market cap of 7.76B as of 2022 and a ROE of 11.12%. The company operates in the United States, Mexico, and Canada. It has a fleet of over 16,000 trucks and trailers. Knight-Swift Transportation provides truckload, intermodal, and logistics services.
– ArcBest Corp ($NASDAQ:ARCB)
ArcBest Corporation is an American logistics company with operations in North America, Europe, and Asia. The company was founded in 1923 and is headquartered in Fort Smith, Arkansas. ArcBest provides a range of logistics services, including transportation, warehousing, and supply chain management. The company has a market cap of 1.8 billion as of 2022 and a return on equity of 24.79%.
– XPO Logistics Inc ($NYSE:XPO)
XPO Logistics Inc is a transportation and logistics company with a market cap of 3.87B as of 2022. The company has a return on equity of 44.59%. XPO Logistics Inc provides transportation and logistics services to customers in a variety of industries, including retail, e-commerce, food and beverage, manufacturing, and energy. The company operates a network of over 1,400 locations in more than 30 countries.
Summary
WERNER ENTERPRISES is currently facing a difficult period, with analysts suggesting that investors should avoid investing in the company. This opinion is based upon declining earnings, reduced future prospects, and a lack of confidence in management. Moving forward, analysts are expecting further deterioration in earnings and stock performance.
Additionally, management has been unable to deliver any meaningful growth strategies or opportunities, leaving the company at risk of further decline. As a result, investors should exercise caution and avoid investing in WERNER ENTERPRISES at this time.
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