Schneider National's Modest Margin Gain Raises Questions About Premium Valuation and Profit Outlook

Schneider National reported a 2.3% net profit margin, up from 2.2% YoY, and 7.3% earnings growth over the past year. Despite this, the company's five-year record shows a 14.4% decline in average annual earnings. Revenue is expected to grow at 4.9% YoY, below the US market's pace of 10.3%. Analysts project a doubling of net profit margins to 5.2% by 2028, driven by technology investments and cost controls. The stock trades at a 28.3x PE ratio, higher than the US transportation industry average.