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Should Investors Get Rid of Schneider Stock Despite Its Lower Valuation?
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Key Takeaways
Schneider trades at a discount forward P/S ratio than its industry average, signaling a cheap valuation.
SNDR grapples with raised healthcare costs, macro-economic uncertainty and lower brokerage volume.
Schneider expects its 2026 adjusted earnings per share to be in the range of 70 cents to $1.00.
Schneider National, Inc. (SNDR - Free Report) looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), Schneider is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.86X compared with 1.37X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. Schneider has a Value Score of C.
Schneider P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
Now, the question is whether it is worth buying, holding, or selling the Schneider stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of Schneider Stock
Schneider’s management provided upbeat full-year 2026 earnings guidance. The company expects its 2026 adjusted earnings per share (EPS) to be in the range of 70 cents to $1.00, which is above the 2025 adjusted EPS of 63 cents. The upside is expected to have been aided by the cost-reduction initiatives. With the successful attainment of cost savings target in 2025, SNDR is hopeful to achieve another $40 million in targeted cost savings in 2026. SNDR aims to boost its earnings by leveraging productivity and asset efficiency actions while improving the topline without incremental growth investments. The Zacks Consensus Estimate for earnings is currently pegged at 84 cents per share.
Schneider’s solid balance sheet increases financial flexibility. The company ended fourth-quarter 2025 with cash and cash equivalents of $201.5 million, higher than the current debt level of $11.1 million. This implies that the company has sufficient cash to meet its current debt obligations. Further, SNDR’s long-term debt has declined to $390.9 million at fourth-quarter 2025-end from $420.8 million at the end of fourth-quarter 2024.
Further, SNDR’s current ratio (a measure of liquidity) at the end of fourth-quarter 2025 stood at 2.23, which is higher than the third-quarter 2025's reading of 2.11 as well as the industry’s figure of 1.28. The favorable comparison with respect to current ratio looks encouraging. This may imply that the risk of default is less. Also, a current ratio greater than 1.5 is usually considered good for a company.
A strong balance sheet enables the company to reward shareholders with dividends and share repurchases. As a reflection of its shareholder-friendly stance, in 2022, 2023 and 2024, SNDR paid dividends of $55.7 million, $63.6 million and $66.6 million, respectively. As of Dec. 31, 2025, SNDR had rewarded its shareholders with $67 million in the form of dividend payments. Dividend paying stocks like SNDR are generally safe bets for creating wealth, as these payouts act as a hedge against economic uncertainty, which characterizes current times.
SNDR is also active on the buyback front. In February 2023, SNDR announced the approval of a three-year $150 million share repurchase program. As of Dec. 31, 2025, SNDR had repurchased 4.4 million Class B shares for $110.1 million under the program. In January 2026, SNDR’s board of directors authorized a new $150 million share repurchase program, which replaces the existing program. Buybacks not only reduces the total outstanding share count, thereby increasing earnings per share, but also signals management's belief in the intrinsic value of the stock. Such shareholder-friendly moves instill investor confidence and positively impacts the company's bottom line.
Schneider Stock’s Price Performance
Shares of Schneider have gained 34% over the past three months, outperforming its transportation-services industry’s 12.4% increase, as well as that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
Schneider Stock Three-Month Price Comparison
Image Source: Zacks Investment Research
Headwinds Weighing on Schneider Stock
Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, and raised healthcare costs. As a result, despite witnessing a decline in capital expenditures from $573.8 million at the end of 2023 to $380.3 million at 2024-end to $289.2 million at the end of 2025, SNDR’s 2026 expectation for capital expenditures is above the prior-year actual figures of 2024 and 2025. For 2026, net capital expenditures are expected to be in the range of $400-$450 million (which consists primarily of replacement capital). Rise in capital expenditures do not bode well for the company's bottom line growth.
Macro-economic uncertainty continues to remain an overhang. The company's bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions, which are driving up overall costs, particularly in the insurance domain, and directly impacting operating expenses. Increased insurance expense and weakness in the freight market continue to hurt SNDR’s prospects.
Schneider's logistics segment continue to get hurt by lower legacy brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering, despite the benefits of the acquisition of Cowan Systems. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.
What Do Earnings Estimates Say for Schneider?
The negative sentiment surrounding Schneider stock is evident from the fact that the Zacks Consensus Estimate for the first quarter of 2026, second-quarter 2026 as well as for full-year 2026 earnings, has been revised downward in the past 60 days. The consensus mark for 2027 earnings has also been projected downward in the past 60 days.
Image Source: Zacks Investment Research
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Time to Get Rid of Schneider
There is no doubt that the stock is attractively valued, and consistent shareholder-friendly initiatives (in the form of dividends and share buybacks) and cost reduction initiatives act as tailwinds for Schneider’s bottom-line growth. Despite such positives, investors should refrain from rushing to buy Schneider now due to the headwinds that it faces.
Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns and raised healthcare costs. Lower brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering continues to hurt SNDR's logistics segment. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Schneider’s prospects.
Collectively, these factors diminish Schneider’s appeal as an investment at this juncture. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #5 (Strong Sell) justifies our analysis.
View the Zacks #1 Rank List
Image: Bigstock
Should Investors Get Rid of Schneider Stock Despite Its Lower Valuation?
Key Takeaways
Schneider National, Inc. (SNDR - Free Report) looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), Schneider is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.86X compared with 1.37X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. Schneider has a Value Score of C.
Schneider P/S Ratio (Forward 12 Months) Vs. Industry
Now, the question is whether it is worth buying, holding, or selling the Schneider stock at current prices. Let us delve deeper to find out.
Tailwinds Working in Favor of Schneider Stock
Schneider’s management provided upbeat full-year 2026 earnings guidance. The company expects its 2026 adjusted earnings per share (EPS) to be in the range of 70 cents to $1.00, which is above the 2025 adjusted EPS of 63 cents. The upside is expected to have been aided by the cost-reduction initiatives. With the successful attainment of cost savings target in 2025, SNDR is hopeful to achieve another $40 million in targeted cost savings in 2026. SNDR aims to boost its earnings by leveraging productivity and asset efficiency actions while improving the topline without incremental growth investments. The Zacks Consensus Estimate for earnings is currently pegged at 84 cents per share.
Schneider’s solid balance sheet increases financial flexibility. The company ended fourth-quarter 2025 with cash and cash equivalents of $201.5 million, higher than the current debt level of $11.1 million. This implies that the company has sufficient cash to meet its current debt obligations. Further, SNDR’s long-term debt has declined to $390.9 million at fourth-quarter 2025-end from $420.8 million at the end of fourth-quarter 2024.
Further, SNDR’s current ratio (a measure of liquidity) at the end of fourth-quarter 2025 stood at 2.23, which is higher than the third-quarter 2025's reading of 2.11 as well as the industry’s figure of 1.28. The favorable comparison with respect to current ratio looks encouraging. This may imply that the risk of default is less. Also, a current ratio greater than 1.5 is usually considered good for a company.
A strong balance sheet enables the company to reward shareholders with dividends and share repurchases. As a reflection of its shareholder-friendly stance, in 2022, 2023 and 2024, SNDR paid dividends of $55.7 million, $63.6 million and $66.6 million, respectively. As of Dec. 31, 2025, SNDR had rewarded its shareholders with $67 million in the form of dividend payments. Dividend paying stocks like SNDR are generally safe bets for creating wealth, as these payouts act as a hedge against economic uncertainty, which characterizes current times.
SNDR is also active on the buyback front. In February 2023, SNDR announced the approval of a three-year $150 million share repurchase program. As of Dec. 31, 2025, SNDR had repurchased 4.4 million Class B shares for $110.1 million under the program. In January 2026, SNDR’s board of directors authorized a new $150 million share repurchase program, which replaces the existing program. Buybacks not only reduces the total outstanding share count, thereby increasing earnings per share, but also signals management's belief in the intrinsic value of the stock. Such shareholder-friendly moves instill investor confidence and positively impacts the company's bottom line.
Schneider Stock’s Price Performance
Shares of Schneider have gained 34% over the past three months, outperforming its transportation-services industry’s 12.4% increase, as well as that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
Schneider Stock Three-Month Price Comparison
Headwinds Weighing on Schneider Stock
Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, and raised healthcare costs. As a result, despite witnessing a decline in capital expenditures from $573.8 million at the end of 2023 to $380.3 million at 2024-end to $289.2 million at the end of 2025, SNDR’s 2026 expectation for capital expenditures is above the prior-year actual figures of 2024 and 2025. For 2026, net capital expenditures are expected to be in the range of $400-$450 million (which consists primarily of replacement capital). Rise in capital expenditures do not bode well for the company's bottom line growth.
Macro-economic uncertainty continues to remain an overhang. The company's bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions, which are driving up overall costs, particularly in the insurance domain, and directly impacting operating expenses. Increased insurance expense and weakness in the freight market continue to hurt SNDR’s prospects.
Schneider's logistics segment continue to get hurt by lower legacy brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering, despite the benefits of the acquisition of Cowan Systems. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.
What Do Earnings Estimates Say for Schneider?
The negative sentiment surrounding Schneider stock is evident from the fact that the Zacks Consensus Estimate for the first quarter of 2026, second-quarter 2026 as well as for full-year 2026 earnings, has been revised downward in the past 60 days. The consensus mark for 2027 earnings has also been projected downward in the past 60 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Time to Get Rid of Schneider
There is no doubt that the stock is attractively valued, and consistent shareholder-friendly initiatives (in the form of dividends and share buybacks) and cost reduction initiatives act as tailwinds for Schneider’s bottom-line growth. Despite such positives, investors should refrain from rushing to buy Schneider now due to the headwinds that it faces.
Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns and raised healthcare costs. Lower brokerage volume, lower volume within the brokerage business and net revenue per order within the company’s Power Only offering continues to hurt SNDR's logistics segment. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Schneider’s prospects.
Collectively, these factors diminish Schneider’s appeal as an investment at this juncture. So, the stock appears to be a risky bet for investors. The stock’s current Zacks Rank #5 (Strong Sell) justifies our analysis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.