Yahoo Finance Why Has YRC Worldwide Stock Fallen since 2016 Began?
An Investor's Perspective of YRC Worldwide
Stock price performance
YRC Worldwide (YRCW) trades on NASDAQ, and its market capitalization on March 11, 2016, was ~$331.2 million. For trucking companies, 2015 was a mixed bag. However, since the beginning of 2016, YRCW’s performance has been the worst in its peer group. On February 9, 2016, the stock touched its 52-week low of $6.25.
The above graph reflects the year-to-date stock price performance of YRCW and its peers. Since that point, the company’s stock has fallen by a whopping 33.2%. We’ll compare how its peers have performed during the same period:
ArcBest Corp (ARCB) rose by 5.3%.
SAIA Inc. (SAIA) went up by 23.0%.
Old Dominion Freight Line (ODFL) rose by 16.4%.
Forward Air Corporation (FWRD) fell by 1.6%.
Celadon Group (CGI) fell very marginally.
Covenant Transportation Group (CVTI) rose by 14.7%.
Universal Truckload Services (UACL) went up by 21.7%.
XPO Logistics (XPO) rose very slightly.
Investors who would like broad-based exposure to the transportation sector can consider the iShares Transportation Average ETF (IYT). This ETF holds about 21.9% in major US railroads and ~11.5% in US-based trucking companies.
Why investors should read this series
The early signs of the freight demand in the United States appeared in February. Well-known truckers like Old Dominion Freight Line (ODFL) and SAIA reported hikes in shipments. This can be seen as an improvement in manufacturing and freight shipping activity. The Institute for Supply Management’s February 2016 PMI (purchasing managers’ index) suggests this trend as well. However, in 2015, the LTL (less-than-truckload) carriers saw reduced demand, which impacted the top line.
YRCW, a member of LTL (SWFT) carriers, operates a large logistics network in the US. The company recently renewed its fleet with 1,300 new tractors. However, there are also concerns about the ~$1.0 billion long-term debt hanging over the company’s head. In the wake of improved business prospects in 2016 and a refinanced balance sheet, we’ll find out how YRCW does as an investment case.
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