WABASH NATIONAL Corp (NYSE: WNC)

Sector: Industrials Industry: Farm & Heavy Construction Machinery CIK: 0000879526
Market Cap 813.14 Mn
P/B 2.95
P/E 7.65
P/S 0.54
ROIC (Qtr) 34.60
Div Yield % 0.68
Rev 1y % (Qtr) -17.77
Total Debt (Qtr) 422.67 Mn
Debt/Equity (Qtr) 1.01
Add ratio to table...

About

Wabash National Corporation, commonly known as Wabash, operates in the transportation, logistics, and distribution industries. The company's headquarters are located in Lafayette, Indiana, and it has been in operation since 1985. Wabash is listed on the NASDAQ stock exchange under the ticker symbol WNC. The company offers a comprehensive range of products and services designed to cater to various markets, including dry and refrigerated van trailers, platform trailers, tank trailers, and truck bodies. Wabash's primary business activities include...

Read more

Investment thesis

Bull case

  • Operating cash flow of 149.98M provides exceptional 234.35x coverage of minority interest expenses 640000, showing strong core operations.
  • Operating cash flow of 149.98M provides strong 14.58x coverage of stock compensation 10.29M, indicating sustainable incentive practices.
  • Strong tangible asset base of 1.09B provides 2.57x coverage of total debt 422.67M, indicating robust asset backing and low credit risk.
  • Cash position of 91.67M provides exceptional 143.24x coverage of minority interest expenses 640000, indicating strong liquidity.
  • Operating cash flow of 149.98M fully covers other non-current liabilities 59.89M by 2.50x, showing strong long-term stability.

Bear case

  • Operating cash flow of 149.98M barely covers its investment activities of (109.43M), with a coverage ratio of -1.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 149.98M provides thin coverage of dividend payments of (14.01M) with a -10.71 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 91.67M provide limited coverage of acquisition spending of (19.47M), which is -4.71x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 149.98M provides minimal 1.75x coverage of tax expenses of 85.73M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • High depreciation of 60.30M relative to operating cash flow of 149.98M, which is 0.40x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Farm & Heavy Construction Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CAT Caterpillar Inc 483.60 Bn 124.96 8.76 43.33 Bn
2 DE Deere & Co 188.47 Bn 68.51 5.30 63.94 Bn
3 PCAR Paccar Inc 68.19 Bn 57.51 3.81 15.85 Bn
4 CNH CNH Industrial N.V. 16.63 Bn 27.85 0.93 27.17 Bn
5 AGCO Agco Corp /De 10.86 Bn 33.29 1.16 2.56 Bn
6 OSK Oshkosh Corp 10.81 Bn 16.71 1.04 1.10 Bn
7 TEX Terex Corp 4.57 Bn 20.69 0.84 2.58 Bn
8 ALG Alamo Group Inc 2.46 Bn 38.76 2.10 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.86 1.36
EV to Cash from Ops. EV/CFO 12.52 2.52
EV to Debt EV to Debt 2.74 36.19
EV to EBIT EV/EBIT 14.10 19.84
EV to EBITDA EV/EBITDA 10.38 11.98
EV to Free Cash Flow [EV/FCF] EV/FCF 15.12 10.22
EV to Market Cap EV to Market Cap 1.42 2.67
EV to Revenue EV/Rev 0.77 2.22
Price to Book Value [P/B] P/B 2.95 2.56
Price to Earnings [P/E] P/E 7.65 19.56
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 18.58 116,909.42
Dividend Payout Ratio % Div Payout % (Qtr) 5.30 51.44
Dividend per Basic Share Div per Share (Qtr) 0.32 1.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.81 11.55
Interest Coverage Int. cover (Qtr) 17.76 6.02
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -40.24 -4.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 12.01 27.84
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -2.90
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 226.44 22.54
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 275.65 2.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 222.84 36.64
EBT Growth (1y) % EBT 1y % (Qtr) 208.70 2,839.65
EPS Growth (1y) % EPS 1y % (Qtr) 213.20 154.78
FCF Growth (1y) % FCF 1y % (Qtr) -31.21 -12.49
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -63.95 -11.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.21 1.00
Cash Payout Ratio Cash Payout (Qtr) 0.06 0.07
Cash Ratio Cash Ratio (Qtr) 0.20 0.46
Current Ratio Curr Ratio (Qtr) 1.35 2.51
Debt to Equity Ratio Debt/Equity (Qtr) 1.01 0.43
Interest Cover Ratio Int Coverage (Qtr) 17.76 6.02
Times Interest Earned Times Interest Earned (Qtr) 17.76 6.02
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.10 -7.57
EBIT Margin % EBIT Margin % (Qtr) 22.38 -11.88
EBT Margin % EBT Margin % (Qtr) 21.12 -14.87
Gross Margin % Gross Margin % (Qtr) 7.30 19.78
Net Profit Margin % Net Margin % (Qtr) 15.90 -16.22