Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Werner Enterprises, Inc. (NASDAQ:WERN) due to its excellent fundamentals in more than one area. WERN is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Werner Enterprises here.
Solid track record with adequate balance sheet
Over the past few years, WERN has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 20%, which is what investors like to see! WERN’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. WERN seems to have put its debt to good use, generating operating cash levels of 2.89x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Werner Enterprises, there are three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for WERN’s future growth? Take a look at our free research report of analyst consensus for WERN’s outlook.
- Valuation: What is WERN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WERN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WERN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.