(Good morning, I'd like to share this good faith investment insight/idea with everyone for discussion and get the word out on the company's recent improvements – thanks.)
North America's fifth largest transportation company, Yellow Corp. (YELL), is in the midst of a major corporate/operational turnaround and positioning themselves exceptionally well for the future. After watching the company for many years, I like what they've accomplished in the past year to two and am confident in their direction. As announced in Feb, Yellow returned to profitability in 2022 and posted their best annual operating income & ratio in 16 years! They operate the nation's 2nd largest LTL freight network (behind only FedEx Freight) and service every zip code in the U.S., with logistics routes also into Canada/Mexico. Although they are a large company, do $5.2+ Billion in revenue and have over 30,000 employees…Yellow Corporation's current market cap is a shocking $112M (with share price of $2.16). When compared to LTL trucking peers and including their significant real estate & equipment, YELL easily becomes one of the United States' most undervalued larger public companies. Their estimated forward P/E is under 3, far below the industry standard. In 2022, Yellow Corp also graduated over 1000 students from their homegrown CDL driving academies. These drivers will increase capacity during the Spring/Summer months when demand is expected to increase across all LTL carriers. LTL (less-than-truckload) is the most profitable category within the ground freight sector, fyi.
The company's network transition to super-regional status (completion expected over the next few months) is a huge step towards Yellow Corporation becoming more efficient/competitive and profitable. This transition will speed up deliveries and significantly increase cost synergies & savings within the company. Yellow's financial situation has begun improving, but it's not 'yet' being reflected in their common stock price (YELL). It's rare to find a large company in such a promising turnaround situation (which still remains somewhat unknown), with extreme Undervaluation investment opportunity. They have also started to pay down debt in large chunks, using a plan to sell off seventeen 'unneeded' (duplicate) commercial real estate holdings – post network transition throughout 2023. Reference their website and public filings for more detailed info. *Lastly, strongly recommend to take a few minutes and compare Yellow's future potential valuation to it's competitors (ArcBest, SAIA, Old Dominion, XPO Logistics, Knight-Swift, etc)! Appreciate your time…
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