Company Overview
Schneider National, Inc. functions as a comprehensive provider of multimodal surface transportation and logistics solutions, serving markets across the United States, Canada, and Mexico. The company operates specifically within the Industrials sector and the Trucking industry, a classification that defines its exposure to freight movement and supply chain dynamics. In terms of scale, the entity holds a market capitalization of $4.46B, generates annual revenue of $5.67B, and employs a workforce of 19000 individuals. These financial metrics indicate that while the company possesses significant operational capacity and a substantial revenue base, its market capitalization reflects a valuation that is sensitive to broader economic cycles affecting the logistics and transportation infrastructure.
Financial Health
The company reported revenue of $5.67B over the trailing twelve months, with a net income of $103.60M and EBITDA of $587.80M. The substantial gap between the $5.67B in revenue and the $103.60M in net income reveals a cost structure where operating expenses, including fuel, labor, and maintenance, consume the vast majority of gross receipts before reaching the bottom line. Free cash flow stands at $26.36M, which provides a measure of the cash generated after capital expenditures, indicating limited but existing financial flexibility for debt service or minor operational investments. The gross margin is recorded at 16.6%, while the operating margin is 2.6% and the profit margin is 1.8%, figures that collectively indicate an industry characterized by high operational leverage where small changes in volume or cost per mile significantly impact overall profitability. The balance sheet shows cash holdings of $243.30M against total debt of $496.80M, resulting in a debt-to-equity ratio of 16.43, which suggests a leveraged capital structure typical for asset-heavy transportation firms. Liquidity is supported by a current ratio of 2.12, indicating that the company holds more than twice the assets required to cover its short-term liabilities. Management effectiveness is reflected in a return on equity of 3.4% and a return on assets of 2.2%, metrics that demonstrate the efficiency with which the company utilizes shareholder capital and its total asset base to generate earnings.
Valuation Assessment
The trailing twelve-month P/E ratio is 43.12, whereas the forward P/E is 18.41, a significant disparity that implies the market expects a substantial improvement in earnings per share in the coming years compared to current performance. The price-to-book ratio is 1.47, indicating that the market values the company at 47% above its book value, which may reflect premiums for brand strength, customer contracts, or expected growth in the logistics segment. Alternative valuation metrics such as the price-to-sales ratio of 0.79 and an EV/EBITDA of 8.02 suggest that the company is trading at a level that weighs heavily on current earnings quality and debt levels rather than speculative growth expectations. The stock has traded between a 52-week high of $30.98 and a 52-week low of $20.11, placing the current valuation context within this historical range to assess recent market sentiment. The beta value is 1.06, which indicates that the stock's price volatility is slightly higher than the broader market, suggesting that the company moves in tandem with general market indices but with increased sensitivity to market fluctuations.
Growth & Income
Revenue growth year-over-year is 4.5%, while earnings growth year-over-year is -29.9%, revealing that earnings are currently shrinking much faster than revenue, which implies that cost pressures or one-time charges are disproportionately affecting the bottom line compared to top-line activity. As a dividend payer, the company offers a dividend yield of 1.6% with a payout ratio of 64.4%, a metric that must be monitored closely given the recent negative earnings growth to determine if the current payout remains sustainable. The divergence between positive revenue growth and negative earnings growth highlights the challenge of maintaining profitability in a high-fixed-cost industry where margin compression can occur even when volume increases. Overall, the growth and income profile presents a scenario of moderate revenue expansion offset by significant earnings contraction and a dividend yield that requires careful evaluation against the backdrop of declining profitability.