Pasted below, please find our Friday Freight note. We distribute this product via email each Friday mid-day, so clients have some freight reading material to make their weekends truly worthwhile! Your feedback is always appreciated if you have any suggestions.
Search Coverage List, Models & Reports
Search Results1-10 out of 560
Following our review of proxy filings for the Rails last month (click here), our note today summarizes key drivers of short-term and long-term executive compensation across the rest of the Transports. We also highlight key changes in compensation metrics compared with last year. Open the note for a summary of comp for each company.
Our monthly 50+ page report details key supply, demand and pricing trends that are important for the Trucking and Truck OEM stocks.
Our WR Transport Index surged 8.5% last week, materially outperforming the 3.2% rise in the S&P 500 and modestly outperforming the 7.4% rise in the XLI. The asset-light Forwarders (+10%) and the TLs (+9%) performed best as the micro-cap truckers – CVTI and USX – finally participated in the group’s outperformance this year, while the non-asset Forwarders (+4%) relatively lagged.
Our 13th Annual Virtual Transport & Industrials Conference takes place this week on 5/19-21, and we have over 80 Transport, Airline, and Multi-Industry companies scheduled to present and/or host 1x1 meetings.
The who’s who of transportation will gather via GoToMeeting links at our 13th Annual Virtual Transport & Industrials Conference this week on May 19-21 (R.I.P. Marriott East Side). We’ve got over 80 transportation, airline, and multi-industry companies presenting and/or hosting 1x1 meetings.
We spoke with a mid-sized private LTL and TL carrier about recent LTL and TL demand and pricing trends. This trucker's LTL shipments declined 22% y/y in April, while TL miles declined 12% y/y, both in line with most public LTL and TL comps. This carrier noted that his volumes with his core contracted customers are down even more, and he’s had to backfill his trucks in the spot market at spot rates that are 25%-30% below his contractual rates. Our contact received a loan as part of the Paycheck Protection Program on May 8, and that source of funding will run out by the first week in June. With that funding, he has been able to keep his employees on the payroll and give 15% bonuses to drivers and maintenance workers. But when that funding runs out after 8 weeks, this carrier won’t be able to keep moving freight at such heavily discounted spot rates.
We’ve updated our annual transport valuation “black box” based on quantitative rankings of risk, reward and returns. Below, we compare all of our transport companies relative to each other and the S&P 500 based on 6 historical and projected metrics including: revenue and EPS growth (i.e. reward), return on capital and free cash flow conversion (i.e. returns), and balance sheet leverage and earnings cyclicality (i.e. risk). We believe companies atop our black box rankings should trade at higher valuations through a cycle than those at the bottom.
Today, the FMCSA issued final rule changes to Hours of Service (HOS) rules for commercial truck and bus drivers. These changes will modestly increase flexibility for TL drivers and thus add to overall TL capacity. While these changes should be positive for utilization for our TL companies under coverage, we view increases in TL capacity as negative for TL pricing and the stocks in such a fragmented industry.
- 1 of 56
- next →