Investment Thesis
Wabash National is in acute financial distress with negative profitability across all metrics, negative operating cash flow, and inability to cover interest from operations. The company is burning cash despite maintaining reasonable equity, and 20.8% revenue decline signals severe operational or market challenges in a cyclical industry.
Strengths
- Positive stockholders equity of $320.6M provides balance sheet cushion
- Current ratio of 1.33x maintains basic liquidity solvency
- Operates in essential truck trailer industry with potential cyclical recovery upside
Risks
- Negative operating cash flow of -$33.7M indicates structural profitability collapse
- Interest coverage ratio of -5.3x means company cannot service debt from operations; immediate refinancing risk
- Revenue decline of 20.8% YoY with negative gross margin of -3.5% suggests fundamental business deterioration
- Debt-to-equity ratio of 1.56x with only $43.4M cash reserves creates solvency pressure
- Negative free cash flow of -$37.1M with negative FCF margin of -12.2% unsustainable without external funding
Key Metrics to Watch
- Operating cash flow inflection and path to positive FCF
- Gross margin recovery from -3.5% to positive territory
- Revenue stabilization and return to growth trajectory
- Interest coverage ratio improvement to positive levels
- Debt refinancing ability and covenant compliance status
Financial Metrics
Revenue
303.2M
Net Income
-45.2M
EPS (Diluted)
$-1.11
Free Cash Flow
-37.1M
Total Assets
1.2B
Cash
43.4M
Profitability Ratios
Gross Margin
-3.5%
Operating Margin
-17.3%
Net Margin
-14.9%
ROE
-14.1%
ROA
-3.7%
FCF Margin
-12.2%
Balance Sheet & Liquidity
Current Ratio
1.33x
Quick Ratio
0.77x
Debt/Equity
1.56x
Debt/Assets
73.8%
Interest Coverage
-5.27x
Long-term Debt
500.0M
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: 2026-05-06T19:53:28.101121 |
Data as of: 2026-03-31 |
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