Added to YB: 2024-01-25
Pitch date: 2024-01-24
FWRD [bearish]
Forward Air Corporation
+48.41%
current return
Author Info
No bio for this author
Company Info
Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United States, Mexico, Europe, Asia, and Canada.
Market Cap
$708.1M
Pitch Price
$49.37
Price Target
30.00 (+18%)
Dividend
N/A
EV/EBITDA
3.47
P/E
-4.82
EV/Sales
1.11
Sector
Air Freight and Logistics
Category
special_situation
[SHORT] Forward Air: Understated Downside Risk As The Deal Is Set To Close
FWRD in tough spot with Omni deal: $20M cash (down from $150M), issuing 15.75M shares (37% Omni/63% FWRD), $1.2B pref shares. Adds $1.6B debt, 40M shares outstanding post-merger. Leverage jumps 0.4x to 3.6x, EV/EBITDA 7.8x LTM (6x 2024E). 40% Omni stake with no lock-up risks selling pressure. Higher debt, capex needs, complex structure suggest ~40% downside to $30 fair value barring unlikely demand surge. Costly deal, uncertain benefits.
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