Is Schneider National, Inc. (NYSE:SNDR) a Buy at 31% Undervalued?

Schneider National, Inc. (NYSE:SNDR), a leading transportation and logistics services company, has been trading at a significant discount to its peers and estimated fair value. With a current share price of $27.52, SNDR is undervalued by approximately 31% based on various valuation metrics. This article explores whether this undervaluation presents an opportunity for investors.



Valuation Metrics

SNDR's valuation metrics suggest that the stock is significantly undervalued compared to its peers and estimated fair value. Some key metrics include:

1. Price-to-Earnings (P/E) Ratio: SNDR's P/E ratio of 41.2x is higher than the peer average of 32.7x, indicating potential overvaluation. However, when compared to the estimated Fair PE Ratio of 31.8x, SNDR appears to be slightly overvalued.
2. Price-to-Sales (P/S) Ratio: SNDR's P/S ratio of 0.91 is lower than the peer average of 1.05, suggesting potential undervaluation. However, this ratio is also lower than the estimated Fair P/S ratio of 0.99, indicating that SNDR may be slightly undervalued based on this metric.
3. Price-to-Book (P/B) Ratio: SNDR's P/B ratio of 1.61 is higher than the peer average of 1.45, indicating potential overvaluation. However, this ratio is also higher than the estimated Fair P/B ratio of 1.61, suggesting that SNDR may be slightly overvalued based on this metric.
4. Enterprise Value (EV) to Revenue: SNDR's EV/Revenue ratio of 1.0x is higher than the peer average of 0.99, indicating potential overvaluation. However, this ratio is also higher than the estimated Fair EV/Revenue ratio of 0.99, suggesting that SNDR may be slightly overvalued based on this metric.
5. Enterprise Value (EV) to Earnings (Earnings Yield): SNDR's EV/EBITDA ratio of 9.03 is higher than the peer average of 8.03, indicating potential overvaluation. However, this ratio is also higher than the estimated Fair EV/EBITDA ratio of 8.03, suggesting that SNDR may be slightly overvalued based on this metric.
6. Price-to-Cash Flow (P/FCF) Ratio: SNDR's P/FCF ratio of 15.77 is higher than the peer average of 14.25, indicating potential overvaluation. However, this ratio is also higher than the estimated Fair P/FCF ratio of 14.25, suggesting that SNDR may be slightly overvalued based on this metric.
7. Price-to-Occupied Cash Flow (P/OCF) Ratio: SNDR's P/OCF ratio of 7.03 is higher than the peer average of 6.25, indicating potential overvaluation. However, this ratio is also higher than the estimated Fair P/OCF ratio of 6.25, suggesting that SNDR may be slightly overvalued based on this metric.



Earnings Growth and Dividend History

SNDR has demonstrated consistent earnings growth over the past few years, with EPS increasing from $0.66 in 2024 to $1.14 in 2025, representing a 72.12% increase. This growth is reflected in the company's forward EPS estimate of $1.82 in 2026, indicating a continued trend of earnings growth. Additionally, Schneider National has a history of paying and increasing dividends, with a current annual dividend of $0.38 and a payout ratio of 57.58%. This consistent dividend growth, along with the company's earnings growth trajectory, contributes to its valuation and makes it an attractive investment option for income-oriented investors.



Analyst Ratings and Price Targets

According to 14 analysts, the average rating for SNDR stock is "Buy." The 12-month stock price forecast is $30.77, which is an increase of 11.81% from the latest price. This suggests that analysts expect SNDR's stock price to rise in the near future, potentially indicating that the undervaluation may be temporary.



Conclusion

While SNDR's valuation metrics suggest that the stock may be slightly overvalued compared to its peers and estimated fair value, the company's consistent earnings growth and dividend history make it an attractive investment option for income-oriented investors. Additionally, the positive analyst ratings and price targets indicate that the undervaluation may be temporary, and that the stock price could rise in the near future. As always, investors should conduct their own research and consider their individual risk tolerance before making any investment decisions.