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Industrials Sector Report

Transportation Industry Report

Market Cap: $1.6T
Stocks: 113
Median P/E: 9.2x
Median ROIC: 8.8%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Industrials sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day+0.3%0.0%
1 Week-2.2%+0.5%
1 Month
3 Months
6 Months
YTD+1.3%+0.6%
1 Year+18.0%+22.7%
3 Years+80.3%+31.9%
5 Years+59.9%+33.3%

Today's Breadth: 44 advancing · 38 declining · 19 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E9.2x2.2x26.1x-15%
P/B1.2x0.5x2.3x-8%
P/S0.6x0.2x1.2x
P/FCF11.5x6.3x19.7x
EV/EBITDA8.3x6.3x10.8x
EV/EBIT13.5x10.8x24.8x
Earnings Yield
6.8%
FCF Yield
6.4%
Below Fair Value
23% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin52.0%49.0%36.9%70.1%
Operating Margin14.2%3.2%20.0%
Net Margin9.3%5.9%1.9%11.4%
FCF Margin5.1%0.8%13.5%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE11.0%3.5%21.5%
ROA3.2%1.4%7.7%
ROIC8.8%7.7%3.5%14.9%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+5.0%+6.9%+10.8%
EPS+23.0%+15.2%+16.8%
Free Cash Flow+8.5%-10.1%-0.2%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.8x
Net Debt / EBITDA
1.8x
Interest Coverage
2.2x
Current Ratio
1.0x

Altman Z-Score

Safe (>3): 24 (22%)
Gray (1.8–3): 16 (15%)
Distress (<1.8): 70 (64%)

Piotroski F-Score

Strong (7–9): 23 (21%)
Moderate (4–6): 72 (64%)
Weak (0–3): 17 (15%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
BKNG1$144.6B32.8x17.4x24.5%20.1%+13.4%0.7%-1.6%5/9
ENB2$116.7B20.2x14.8x5.2%10.8%+19.8%5.8%+0.8%2/9
RCL3$77.2B18.3x15.2x15.5%23.8%+8.8%1.2%+4.3%1/9
EBGEF4$55.7B7.5x9.4x5.2%10.8%+21.9%15.5%+0.1%2/9
EBBGF5$54.7B7.4x9.3x5.2%10.8%+21.9%15.8%+0.2%2/9
ODFL6$43.9B33.0x19.4x24.9%18.6%-5.5%0.7%+4.7%7/9
DAL7$43.8B9.2x6.4x17.0%7.9%+2.8%1.0%+11.9%4/9
EBBNF8$41.8B8.1x9.6x5.2%10.8%+19.8%14.5%-0.2%2/9
ENBGF9$40.1B5.4x8.5x5.2%10.8%+21.9%21.6%0.0%2/9
ENNPF10$39.3B5.3x8.4x5.2%10.8%+21.9%22.0%0.0%2/9
CCL11$37.9B12.7x8.3x12.3%10.4%+6.4%-2.3%1/9
CUK12$37.8B11.8x7.9x12.1%10.4%+6.4%+4.7%1/9
ENBHF13$37.3B4.7x8.2x5.2%10.8%+21.9%25.1%+10.3%2/9
ENBRF14$36.2B5.6x8.6x5.2%10.8%+21.9%20.8%0.0%3/9
VIK15$34.9B28.5x38.1%17.7%+21.9%0.1%+7.4%1/9
ENBNF16$34.8B4.7x8.2x5.2%10.8%+21.9%24.7%0.0%2/9
EBRGF17$34.5B4.6x8.1x5.2%10.8%+21.9%25.6%0.0%2/9
ENBFF18$34.0B4.7x8.2x5.2%10.8%+21.9%24.9%0.0%2/9
EBRZF19$33.9B4.6x8.2x5.2%10.8%+21.9%25.2%0.0%2/9
CUKPF20$33.1B12.0x8.0x12.1%10.4%+6.4%-22.6%1/9

Industry Composition

IndustryStocksMarket Cap%
Pipe Lines (No Natural Gas)17$646.9B40.2%
Water Transportation18$313.1B19.4%
Transportation Services12$224.2B13.9%
Air Transportation, Scheduled20$174.8B10.9%
Trucking (No Local)13$105.5B6.5%
Marine Shipping9$73.0B4.5%
Arrangement Of Transportation Of Freight & Cargo7$47.6B3.0%
Deep Sea Foreign Transportation Of Freight17$25.7B1.6%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
4%
Median Piotroski F
6/9
Profitable Years
8 of 10

Dividends & Shareholder Returns

Paying Dividends
50%
Median Div Yield
2.3%
Median Buyback Yield
0.7%
Shareholder Yield
3.1%
Payout Ratio
58.0%
Div Growth (3Y)
4.6%
Div Growth (5Y)
8.4%

Strengths & Weaknesses

Strengths

  • +[Growth]Strong secular growth with a median 5-year revenue CAGR of 10.8%, outpacing nominal GDP.
  • +[Profitability]High pricing power with a median gross margin of 52.0%, reflecting differentiated products or strong brand moats.
  • +[Valuation]Attractive valuations: current median P/E of 9.2x is 15.3% below the 5-year average, presenting potential value opportunity.

Weaknesses

  • [Financial Health]63.6% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Tight interest coverage at 2.2x, leaving limited cushion for debt servicing if earnings decline.
  • [Quality]Only 3.5% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.
  • [Valuation]Only 23.2% of companies trade below estimated fair value, suggesting limited margin of safety at current prices.

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