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We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia, and we are one of the largest retailers of commercial trucks in North America for Freightliner.
Operating margin is thin at 4.03%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 0.2% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 24% versus the prior year, cash generation momentum has weakened. Net debt of $4.66B represents 7.2x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$31.81B
▼ -0.2% YoY
Net Income (TTM)
$935M
▼ -3.5% YoY
Op. Margin
4.03%
▼ -0.3pp YoY
ROIC
9.34%
▼ -1.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$651M
▼ -23.7% YoY
Op. Cash Flow (TTM)
$975M
▼ -20.8% YoY
Net Debt
$4.66B
Cash & Equiv.
$65M
5Y CAGR: +9.2%
5Y CAGR: -8.5%
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