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WERNWerner Enterprises, Inc.
$34.41$2.1B
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  4. Financial Ratios

Werner Enterprises, Inc. (WERN) Financial Ratios

Latest Ratios: P/E Ratio -143.4x · EV/EBITDA 7.7x · ROE -1.0%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

WERN Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$2.1B$1.8B$2.3B$2.7B$2.6B$3.2B$2.7B$2.5B$2.1B$2.8B$2.0B
Enterprise Value$2.8B$2.5B$2.9B$3.3B$3.2B$3.6B$2.9B$2.8B$2.2B$2.9B$2.1B
P/E Ratio →-143.38—65.3124.0710.7612.4816.0715.2912.6813.8024.72
P/S Ratio0.690.610.740.820.791.181.151.030.871.320.97
P/B Ratio1.501.311.511.721.752.372.282.291.682.371.96
P/FCF——————82.90432.20———
P/OCF11.3510.006.835.695.799.726.115.975.099.956.25

P/E links to full P/E history page with 30-year chart

WERN EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.840.961.010.981.331.221.150.901.361.05
EV / EBITDA7.747.058.176.985.356.305.925.954.897.996.30
EV / EBIT39.49137.4835.6418.339.5910.3812.6912.3611.1421.0716.26
EV / FCF——————88.42479.40———

WERN Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin5.8%5.8%11.2%12.9%15.9%17.5%19.4%17.3%17.0%16.3%16.1%
Operating Margin2.3%2.3%2.2%5.4%9.8%11.3%9.6%9.2%9.1%6.8%6.3%
Net Profit Margin-0.5%-0.5%1.1%3.4%7.3%9.5%7.1%6.8%6.8%9.6%3.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-1.0%-1.0%2.2%7.4%17.0%20.3%14.7%14.1%13.7%18.6%8.2%
ROA-0.5%-0.5%1.1%3.5%8.2%10.5%7.7%7.9%8.6%11.3%4.6%
ROIC2.5%2.5%2.3%6.2%12.5%14.8%12.3%12.3%12.8%8.9%8.9%
ROCE2.6%2.6%2.4%6.2%12.2%14.1%12.0%12.5%13.4%9.1%8.4%

WERN Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.540.540.470.440.500.330.180.280.100.080.18
Debt / EBITDA2.112.111.971.441.220.790.430.660.280.270.54
Net Debt / Equity—0.500.440.400.420.300.150.250.070.070.16
Net Debt / EBITDA1.941.941.851.311.040.700.370.590.200.230.49
Debt / FCF——————5.5147.20———
Interest Coverage0.470.472.085.4128.4679.2354.3133.3873.9661.0950.46

WERN Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.941.941.521.922.462.351.671.511.471.721.74
Quick Ratio1.901.901.481.872.422.311.621.481.441.671.68
Cash Ratio0.190.190.110.190.350.200.110.110.110.060.08
Asset Turnover—1.030.991.041.031.021.061.151.181.171.12
Inventory Turnover231.49231.49189.78158.20190.57202.55158.45220.31202.77151.52131.94
Days Sales Outstanding—50.9750.3352.2962.1666.3957.7557.2854.1257.0250.24

WERN Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.6%1.9%1.6%1.3%1.2%0.9%0.9%11.2%1.1%0.7%0.9%
Payout Ratio——102.4%30.4%13.3%11.2%14.7%171.4%13.7%9.3%21.8%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——1.5%4.2%9.3%8.0%6.2%6.5%7.9%7.2%4.0%
FCF Yield——————1.2%0.2%———
Buyback Yield2.7%3.1%3.0%0.2%4.2%3.2%2.1%1.7%3.4%0.1%0.1%
Total Shareholder Yield4.3%4.9%4.5%1.5%5.5%4.1%3.0%12.9%4.5%0.7%1.0%
Shares Outstanding—$61M$63M$64M$65M$68M$69M$70M$72M$73M$72M

Key Metrics

Growth RegimeDecelerating
ProfitabilityStrained
Balance SheetAdequate
Cash FlowMixed
Top Statement Risk

Freight recession and thin margins

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Margin Compression Persists Amid Freight Downturn

Gross margin fell to 5.8% in Q2 2026 from 10.8% a year earlier, while net margin turned negative at -0.5%, per reported financials, indicating persistent cost pressures.

The sharp contraction in gross margin from 10.8% to 5.8% year-over-year suggests that Werner's pricing power remains weak in a soft freight market, with cost inflation outpacing rate recovery. Operating margin of 1.8% in Q2 2026 is a slight improvement from the negative prints in Q3 2025 and Q1 2026, but still far below the 8.8% seen in Q2 2025, implying that the company has not yet regained its pre-downturn profitability. The negative net margin of -0.5% in Q2 2026, despite positive operating income, points to elevated interest expense and other non-operating costs, which may continue to weigh on earnings if leverage persists.

Return on Capital Stuck Near Zero

ROIC has hovered between -0.5% and 2.3% over the past ten quarters, with Q2 2026 at 0.5%, per quarterly data, indicating that Werner is barely earning its cost of capital.

The ten-quarter trend shows ROIC oscillating around zero, with a peak of 2.3% in Q2 2025 and a trough of -0.5% in Q3 2025, reflecting the cyclicality of the trucking industry and the company's high capital intensity. The current ROIC of 0.5% is well below the cost of capital, suggesting that Werner is destroying value in the current environment, a stark contrast to the 11.6% ROIC reported by J.B. Hunt. The driver of this weak return is not asset efficiency—asset turnover has been stable at 0.25-0.29—but rather the collapse in margins, which have fallen from double-digit levels to near zero, indicating that the company's asset base is not generating sufficient operating income.

Working Capital Efficiency Deteriorates

Cash conversion cycle lengthened to 63 days in Q2 2026 from 34 days in Q4 2024, driven by slower receivables collection and negative days payable, per reported figures.

The CCC expansion from 34 to 63 days over six quarters is primarily due to DSO rising from 51 to 49 days (though stable) and DPO turning negative at -15 days in Q2 2026, meaning Werner is paying suppliers faster than it collects from customers. This negative DPO is unusual and may indicate that the company is losing negotiating leverage with suppliers or is making early payments to secure discounts, which could strain liquidity. The slight improvement in asset turnover to 0.29 in Q2 2026 from 0.25 a year earlier is offset by the deteriorating working capital position, suggesting that operational efficiency is not improving despite the revenue stabilization.

Leverage Creeps Higher as Coverage Weakens

Debt-to-equity rose to 0.68 in Q2 2026 from 0.41 in Q1 2024, while interest coverage fell to 1.30 from 1.58, per balance sheet data, indicating rising financial risk.

The steady increase in D/E from 0.41 to 0.68 over ten quarters reflects a growing debt load, with total debt climbing to $941.9M, while equity remained flat at $1.4B. Interest coverage of 1.30 in Q2 2026 is barely above 1.0, meaning operating income is just sufficient to cover interest expense, leaving little cushion for adverse shocks. The negative interest coverage in Q3 2025 and Q1 2026 (when operating income was negative) highlights the vulnerability of the balance sheet during downturns, and the recent acquisition activity may have added debt without immediate earnings contribution, warranting close monitoring of covenant compliance.

Liquidity Cushion Thins Despite Stable Ratios

Current ratio improved to 1.45 in Q2 2026 from 1.44 in Q1 2026, but cash of $57M covers only 6% of total debt, per reported balance sheet, indicating a thin buffer.

The current ratio has remained above 1.4 for the past year, suggesting that short-term assets cover short-term liabilities, but the absolute cash position is small relative to the debt load, and the quick ratio of 1.42 indicates that inventory is not a major liquidity source. The negative free cash flow in several quarters (e.g., -$73.4M in Q3 2024) and the reliance on debt for acquisitions suggest that Werner's liquidity could be strained if the freight downturn persists. The improvement in FCF margin to 5.9% in Q2 2026 is encouraging, but it is volatile and may not be sustainable if equipment sale gains fade.

Misapplied Metric: EV/EBITDA

EV/EBITDA of 8.49 appears reasonable, but it is distorted by depressed EBITDA and significant equipment sale gains, per reported figures, obscuring true earning power.

In asset-heavy trucking, EV/EBITDA is often used as a valuation shortcut, but for Werner, EBITDA is currently depressed due to the freight recession, making the multiple appear higher than the forward EV/EBITDA of 5.24 suggests. More importantly, EBITDA includes gains on sale of equipment, which are non-recurring and can inflate the metric during periods of strong used-truck prices, as seen in Q2 2026 when FCF margin was positive despite negative net income. Investors should adjust EBITDA for equipment gains and use a normalized mid-cycle EBITDA to assess valuation, or rely on price-to-book (1.69) and price-to-sales (0.78) which are less distorted by cyclicality.

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WERN — Frequently Asked Questions

Quick answers to the most common questions about buying WERN stock.

What is Werner Enterprises, Inc.'s P/E ratio?

Werner Enterprises, Inc.'s current P/E ratio is -143.4x. The historical average is 19.4x.

What is Werner Enterprises, Inc.'s EV/EBITDA?

Werner Enterprises, Inc.'s current EV/EBITDA is 7.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.7x.

What is Werner Enterprises, Inc.'s ROE?

Werner Enterprises, Inc.'s return on equity (ROE) is -1.0%. The historical average is 11.5%.

Is WERN stock overvalued?

Based on historical data, Werner Enterprises, Inc. is trading at a P/E of -143.4x. Compare with industry peers and growth rates for a complete picture.

What is Werner Enterprises, Inc.'s dividend yield?

Werner Enterprises, Inc.'s current dividend yield is 1.63%.

What are Werner Enterprises, Inc.'s profit margins?

Werner Enterprises, Inc. has 5.8% gross margin and 2.3% operating margin.

How much debt does Werner Enterprises, Inc. have?

Werner Enterprises, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.