Should Investors Get Rid of Schneider Stock Despite Its Lower Valuation?

Valuation and Financial Performance - Schneider National, Inc. (SNDR) is trading at a forward 12-month price-to-sales ratio (P/S-F12M) of 0.80X, which is lower than the industry average of 1.46X, indicating an attractive valuation [1][7] - The company has a Value Score of B, suggesting it is undervalued compared to its peers [1] Capital Expenditures and Financial Flexibility - Schneider has seen a decline in capital expenditures, with net capital expenditures of $380.3 million in 2024, down from $573.8 million in 2023, and a revised guidance for 2025 of around $300 million [4] - The company ended Q3 2025 with cash and cash equivalents of $194.1 million, significantly higher than its current debt of $12.4 million, indicating strong financial flexibility [5] Shareholder Returns - Schneider has consistently paid dividends, totaling $55.7 million in 2022, $63.6 million in 2023, and $66.6 million in 2024, with $50.3 million returned to shareholders year-to-date as of September 30, 2025 [8] - The company has a share repurchase program approved for $150 million, with $103.9 million spent to repurchase 4.1 million Class B shares, which enhances shareholder value [9] Stock Performance - Schneider's stock has increased by 31.2% over the past three months, outperforming the transportation-services industry, which saw a 7.8% increase [10] Earnings Guidance and Challenges - The company has lowered its 2025 adjusted earnings per share guidance to approximately 70 cents from a previous range of 75-95 cents due to rising insurance-related costs and macroeconomic uncertainties [7][19] - Ongoing inflation and supply-chain disruptions are negatively impacting operating expenses and overall profitability [14][19] Market Sentiment and Analyst Revisions - The Zacks Consensus Estimate for Schneider's earnings has been revised downward for Q4 2025 and full-year 2025 and 2026, indicating a lack of confidence among analysts [16] - The current Zacks Rank for Schneider is 4 (Sell), reflecting the negative sentiment surrounding the stock [19]