Update to YRC Worldwide Fundamentals Compared to the Trucking Industry

People have been requesting an update to the numbers in my YRC Worldwide Fundamentals Compared to the Trucking Industry ranking. So here are the updates to the numbers for P/E, P/S, P/B, and Profit Margin. Debt to Capital % and Current Ratio have not changed during this time span so I will not update those items until after Q4 results. In this round it's a good news/bad news situation for YRC Worldwide. Their Book Value has gone further negative as they lost money in the last quarter, but their margin is improving and revenue has increased quarter over quarter. Refer to my original article to get commentary related to them. If there's another metric you'd like to see in this ranking, request it in the comments section and I'll see if I can dig it up the next time I do this. The companies involved in this ranking are:

Arkansas Best Corp NASDAQ:ABFS
Con-Way Inc NYSE:CNW
JB Hunt Transport Services Inc NASDAQ:JBHT
Landstar System Incorporated NASDAQ:LSTR
Old Dominion Freight Line Inc NASDAQ:ODFL
Werner Enterprises Inc NASDAQ:WERN


Price to Earnings

WERN...21.8
LSTR.....24.0
ODFL....26.9
JBHT.....27.6

Four companies have positive earnings. Not much has changed under this metric.





Price to Sales

YRCW....0.03
ABFS.......0.4
CNW........0.4
LSTR.......0.8
WERN.....0.9
ODFL......1.2
JBHT.......1.3

YRCW's P/S metric actually dropped from 0.04 to 0.03. If they can turn their margins around, they could have a very good P/E at this price.

Price to Book

ABFS.....1.5
WERN....2.1
CNW......2.2
ODFL.....2.6
LSTR......7.0
JBHT......8.1

This is where the bad side of YRC Worldwide gets worse. They have a negative book value that is getting worse. Their book value in the prior article was -$1.71. Now it's -$2.53. At that pace it could easily go to -$3 to -$4 next year.

Profit Margin

JBHT........5.02%
ODFL.......4.54%
WERN.....4.13%
LSTR.......3.43%
CNW......-0.01%
YRCW....-4.80%
ABFS.....-7.43%

The good news for YRCW is that they managed to improve their margin from -10.44% to -4.80%, making it a lot more plausible for them to start pulling a profit sometime next year as long as they keep their costs under control. A positive margin of 1% over the course of the year would cause their P/E metric to be dominant in the industry because their revenues are so much larger than their market cap when looking at the P/S.The stock price could skyrocket thanks to that. A lot of investors are betting on this happening. Meanwhile, there's a lot that look at that Book Value and see imminent bankruptcy protection written all over YRCW. It will be interesting to see where this company lands.


All numbers are updated as of December 16th, 2010. I do not own any of these companies.

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