Stock Analysis & Valuation Schneider National, Inc. (SNDR)

• Previous Close: $26.84
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	20.01	-25
Intrinsic value (DCF)	10.08	-62
Graham-Dodd Method	12.51	-53
Graham Formula	3.00	-89

Strategic Investment Analysis

Company Overview

Schneider National, Inc. (NYSE: SNDR) is a leading provider of surface transportation and logistics solutions across the United States, Canada, and Mexico. Founded in 1935 and headquartered in Green Bay, Wisconsin, Schneider operates through three core segments: Truckload, Intermodal, and Logistics. The Truckload segment offers specialized shipping services, including dry van, bulk, temperature-controlled, and flat-bed solutions, catering to time-sensitive freight needs. The Intermodal segment provides efficient rail-dray container services, leveraging company-owned assets for seamless door-to-door delivery. The Logistics segment enhances supply chain efficiency through freight brokerage, warehousing, and import/export services. With a market cap exceeding $4 billion, Schneider National is a key player in the trucking industry, combining asset-based reliability with flexible logistics solutions. Its diversified service portfolio and strong operational footprint position it competitively in the Industrials sector, serving a broad customer base with integrated transportation needs.

Investment Summary

Schneider National presents a mixed investment profile. The company benefits from a diversified revenue stream across Truckload, Intermodal, and Logistics segments, reducing reliance on any single market. Its asset-light Logistics segment provides margin flexibility, while the asset-heavy Truckload and Intermodal segments offer stability. However, the trucking industry faces cyclical demand and cost pressures (fuel, labor), reflected in Schneider's modest net income margin (~2.2%) and beta of 1.05, indicating market-correlated volatility. Positive operating cash flow ($686M) supports its dividend ($0.38/share), but debt levels ($527M) warrant monitoring amid rising interest rates. Valuation appears reasonable given its sector position, but investors should weigh exposure to freight demand fluctuations against Schneider's operational scale and intermodal growth potential.

Competitive Analysis

Schneider National's competitive advantage lies in its integrated service model, combining asset-based trucking with non-asset logistics—a hybrid approach that balances revenue stability (Truckload/Intermodal) with higher-margin brokerage (Logistics). Its Intermodal segment is a differentiator, leveraging proprietary containers/chassis to provide cost-competitive rail solutions, a moat against pure-play truckload rivals. Schneider's scale (5,300+ tractors, 14,400+ trailers) ensures density in key lanes, while its 90-year brand equity fosters customer retention. However, it faces pricing pressure from digital freight brokers like CH Robinson in Logistics and competes with larger intermodal players such as J.B. Hunt. Schneider's regional trucking focus avoids direct competition with national less-than-truckload (LTL) carriers but limits exposure to premium LTL pricing. Technology investments (e.g., real-time tracking) are table stakes in the industry, and Schneider lags behind tech-forward peers in dynamic routing automation. Its competitive positioning is strongest in asset-based segments, where operational efficiency (e.g., empty-mile reduction) drives margins, while the Logistics unit battles thinner spreads in a fragmented market.

Major Competitors

• J.B. Hunt Transport Services (JBHT): J.B. Hunt dominates intermodal (48% of revenue) with a larger network than Schneider, benefiting from long-term rail partnerships (notably BNSF). Its Integrated Capacity Solutions segment competes directly with Schneider's Logistics unit. J.B. Hunt's scale yields superior margins (7.5% operating margin vs. Schneider's 4.4%), but Schneider holds an edge in asset utilization (higher revenue per truck).
• Knight-Swift Transportation (KNX): Knight-Swift is the largest full-truckload carrier post-merger, with 3x Schneider's revenue. Its LTL expansion diversifies beyond Schneider's focus, but Schneider's intermodal presence provides a counterbalance. Knight-Swift's scale advantages in procurement are offset by Schneider's more specialized temperature-controlled and bulk offerings.
• C.H. Robinson Worldwide (CHRW): C.H. Robinson is the largest freight broker, competing head-to-head in Schneider's Logistics segment. Its non-asset model yields higher margins but lacks Schneider's asset-backed capacity control. Schneider's hybrid model provides more consistent capacity during tight markets, whereas C.H. Robinson's variable-cost structure struggles with spot-rate volatility.
• Old Dominion Freight Line (ODFL): Old Dominion focuses on high-margin LTL, a segment Schneider largely avoids. ODFL's premium pricing (30%+ operating margins) reflects service quality, but Schneider's intermodal and truckload diversification insulates it from LTL cyclicality. Schneider cannot match ODFL's density in LTL networks.
• XPO Logistics (XPO): XPO's LTL and last-mile logistics diverge from Schneider's core markets, but its freight brokerage overlaps with Schneider's Logistics. XPO's European exposure adds geographic risk Schneider avoids, while Schneider's intermodal depth is unmatched by XPO's asset-light model.