Our analysis is based on comparing Forward Air Corp. with the following peers – Expeditors International of Washington, Inc., Roadrunner Transportation Systems, Inc., FedEx Corporation, Universal Logistics Holdings, Inc., Saia, Inc., Old Dominion Freight Line, Inc. and ArcBest Corporation (EXPD-US, RRTS-US, FDX-US, ULH-US, SAIA-US, ODFL-US and ARCB-US).
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), FWRD-US paid a high quality dividend, which represents a yield of 1.09% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), FWRD-US paid a high quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 6.26x), investing cash flow (coverage of -2.63x), issuance cash flow (coverage of -2.57x) and twelve-month prior cash (coverage of 0.62x), for a total dividend coverage of 1.69x.
FWRD-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.09x) and net share buybacks (coverage of -2.47x). Thus, the total coverage including share buybacks is 4.16x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||0.97||0.91||0.97||1.13||1.09||1.36|
|Dividend Payout (%)||19.1||22.6||24.49||26.97||56.67||28.17|
A complete list of metrics and analysis is available on the company page.
Forward Air Corp. engages in the provision of surface transportation and logistics services to air freight market. It operates through the following segments: Expedited Less-Than-Truckload, Truckload Premium Services, Intermodal, and Pool Distribution. The Expedited Less-Than-Truckload segment offers customers local pick-up, delivery, and services including shipment consolidation and deconsolidation, warehousing, customs brokerage, and handling. The Truckload Premium Services segment offers expedited truckload brokerage, dedicated fleet, as well as high security and temperature controlled logistics services. The Intermodal segment includes first and last-mile high value intermodal container drayage services to and from seaports and railheads. The Pool Distribution segment involves in handling and distribution of time sensitive product. The company was founded by Scott M. Niswonger on October 23, 1981 and is headquartered in Greeneville, TN.
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