Investment Thesis
Schneider National exhibits solid revenue growth (+7.3% YoY) and maintains a fortress balance sheet with conservative leverage (0.13x Debt/Equity) and strong liquidity. However, declining net income (-11.5% YoY) despite revenue growth reveals concerning margin compression, with operating margins of just 2.4% and net margins of 1.5% reflecting fundamental profitability challenges in the competitive trucking sector.
Strengths
- Strong revenue growth of 7.3% YoY demonstrates market demand
- Conservative leverage with 0.13x Debt/Equity ratio provides financial flexibility
- Robust liquidity with 1.95x current ratio and 1.83x quick ratio
- Positive free cash flow generation of $52.0M provides operational cushion
- Adequate interest coverage of 4.0x indicates manageable debt service
Risks
- Extremely thin operating margin of 2.4% limits pricing power and operational resilience
- Net income declining 11.5% YoY despite revenue growth signals margin compression and rising cost pressures
- Anemic returns on equity (0.7%) and assets (0.4%) indicate poor capital efficiency
- Highly competitive trucking industry with structural margin constraints
- Profitability deterioration threatens dividend capacity and growth investment ability
Key Metrics to Watch
- Operating margin trend and cost structure normalized by fuel/labor expenses
- Net income stabilization and return to YoY growth
- Free cash flow sustainability and capital allocation decisions
Financial Metrics
Revenue
1.4B
Net Income
20.4M
EPS (Diluted)
$0.12
Free Cash Flow
52.0M
Total Assets
4.9B
Cash
227.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
2.4%
Net Margin
1.5%
ROE
0.7%
ROA
0.4%
FCF Margin
3.7%
Balance Sheet & Liquidity
Current Ratio
1.95x
Quick Ratio
1.83x
Debt/Equity
0.13x
Debt/Assets
38.6%
Interest Coverage
4.02x
Long-term Debt
386.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T18:54:19.982033 |
Data as of: 2026-03-31 |
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