Breaking Down Saia, Inc. (SAIA) Financial Health: Key Insights for Investors

Are you keeping a close watch on Saia, Inc. (SAIA) and wondering about its financial stability? With a recent full-year revenue of $3.21 billion, reflecting an 11% increase from fiscal year 2023, and a net income of $362.1 million, up by 2.0%, understanding the key financial indicators is crucial. But how sustainable is this growth, especially with a slight dip in profit margin to 11%? Dive in to explore a detailed breakdown of SAIA's financial health, investments, and future outlook, helping you make informed decisions.

Saia, Inc. (SAIA) Revenue Analysis

Saia, Inc. primarily generates revenue through less-than-truckload (LTL) services, offering transportation and logistics solutions across North America. These services involve consolidating smaller freight shipments onto a single truck, optimizing efficiency and cost-effectiveness for shippers.

Saia Inc.'s total revenue for the year 2024 reached $2.8 billion, reflecting a 0.8% increase compared to the $2.78 billion reported in 2023. This growth indicates a steady demand for Saia's transportation services despite market fluctuations. The company's ability to slightly increase its revenue year-over-year underscores its competitive positioning and operational effectiveness in the LTL market.

Analyzing Saia Inc.'s revenue streams involves understanding the contribution of different business segments to its overall financial performance. While specific segment-level revenue breakdowns are not explicitly detailed in the provided extracts, the primary driver remains its LTL services. Factors influencing revenue include:

• Shipment Volumes: The quantity of freight transported directly impacts revenue.
• Pricing Strategies: Adjustments in pricing, influenced by market conditions and competitive pressures, affect revenue per shipment.
• Fuel Surcharges: Changes in fuel costs lead to adjustments in surcharges, impacting overall revenue.
• Geographic Expansion: Expanding service networks and entering new markets contribute to revenue growth.

Significant changes in Saia's revenue streams are influenced by broader economic trends and industry-specific factors. For instance, fluctuations in manufacturing output, retail sales, and construction activities can impact freight demand. Additionally, advancements in technology, such as enhanced tracking systems and digital freight platforms, can drive operational efficiencies and customer satisfaction, indirectly affecting revenue.

For more insights into Saia, Inc.'s financial health, you can explore: Breaking Down Saia, Inc. (SAIA) Financial Health: Key Insights for Investors

Saia, Inc. (SAIA) Profitability Metrics

Analyzing Saia, Inc.'s financial health involves a close examination of its profitability metrics. Key indicators such as gross profit, operating profit, and net profit margins provide insights into the company's ability to generate earnings and manage its expenses.

In 2024, Saia, Inc. reported a gross profit of $1.12 billion. The operating income stood at $504.67 million, while the net income was $351.44 million.

Here's a detailed breakdown of Saia, Inc.'s profitability metrics:

• Gross Profit: $1.12 billion
• Operating Income: $504.67 million
• Net Income: $351.44 million

To provide a clearer picture, let's look at the profitability ratios:

• Gross Margin: 33.67%
• Operating Margin: 15.17%
• Net Profit Margin: 10.56%

A comparison of Saia, Inc.'s profitability ratios over the past few years reveals the following trends:

Saia, Inc.'s operational efficiency can be further understood by examining its cost management strategies and gross margin trends. Effective cost control and consistent gross margin performance are indicative of strong operational management.

For more insights into Saia, Inc.'s financial health, you can read the full analysis here: Breaking Down Saia, Inc. (SAIA) Financial Health: Key Insights for Investors

Saia, Inc. (SAIA) Debt vs. Equity Structure

Understanding Saia, Inc.'s financial leverage involves analyzing its debt levels, debt-to-equity ratio, and how it strategically uses debt and equity to fund its operations and growth. As of the fiscal year 2024, Saia's approach to balancing debt and equity offers insights into its financial strategy and risk management.

As of December 2024, Saia, Inc. (SAIA) reported the following debt scenario:

• Total Debt: $376.1 million
• Total Shareholder Equity: $1.44 billion

Saia, Inc. strategically manages its debt to capitalize on growth opportunities while ensuring financial stability. Recent financial activities provide a clearer picture:

• In Q4 2024, Saia, Inc. demonstrated robust financial health with operating revenue reaching $744.4 million, a 5.1% increase from Q4 2023.
• The company's operating ratio improved to 85.7%, and its diluted earnings per share increased to $3.51 from $2.94 in the previous year.

The overview of Saia, Inc.'s debt levels, including both long-term and short-term obligations, is essential for assessing its financial risk and stability. Saia, Inc. had a total debt of $376.1 million at the end of December 2024. This figure encompasses both short-term liabilities and long-term debt obligations, reflecting the company's financing structure. Saia's long-term debt stood at $354.9 million, while its short-term debt was $21.2 million as of December 2024.

The debt-to-equity ratio is a critical metric used to evaluate a company's financial leverage. It indicates the proportion of equity and debt a company uses to finance its assets. As of December 2024, Saia's debt-to-equity ratio is approximately 0.26. This ratio is calculated by dividing the total debt ($376.1 million) by the total shareholder equity ($1.44 billion). A debt-to-equity ratio of 0.26 suggests that Saia relies more on equity than debt to finance its operations.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial health. Saia's financial statements and investor relations updates provide insights into these activities. For instance, Saia’s capital expenditures and investments in operational capacity are financed through a mix of operating cash flow and debt. This approach allows Saia to expand its network and service capabilities while maintaining a balanced capital structure.

Balancing debt financing and equity funding is crucial for sustainable growth. Saia's strategy involves carefully managing its debt levels to avoid excessive financial risk while leveraging debt to fund strategic investments. The company's ability to generate strong operating cash flow supports its debt obligations and reduces its reliance on additional equity financing. As of December 2024, Saia, Inc. reported cash and cash equivalents of $78.6 million, which provides a buffer for managing its debt obligations and supporting its operational needs.

Here’s a snapshot of Saia, Inc.’s financial positioning:

For further insights into Saia, Inc.'s financial health, you might find this resource helpful: Breaking Down Saia, Inc. (SAIA) Financial Health: Key Insights for Investors

Saia, Inc. (SAIA) Liquidity and Solvency

Here's an overview of Saia, Inc.'s liquidity position, incorporating key financial data and ratios:

Assessing Saia, Inc.'s Liquidity:

• Current and Quick Ratios: As of December 2024, Saia's current ratio is 1.57 and the quick ratio is also 1.57. These ratios indicate the company's ability to cover short-term liabilities with its current assets.
• Cash Ratio: The cash ratio for December 2024 is 0.07, a decrease from 0.92 in December 2023. This indicates a significant reduction in readily available cash to cover current liabilities.

Analysis of Working Capital Trends:

• Net Current Asset Value: Saia, Inc. reported a net current asset value of -$419.82 million in December 2024, a steep decline compared to $6.62 million in December 2023.
• Change in Working Capital: The change in working capital for the trailing twelve months (TTM) ending December 2024 was -$74 million.

Cash Flow Statements Overview:

• Operating Activities: For the year 2024, net cash provided by operating activities was $583.702 million, slightly up from $577.945 million in 2023.
• Investing Activities: Net cash used in investing activities was $1,035.864 million in 2024, significantly higher than the $448.696 million used in 2023. This increase is attributed to substantial investments in property and equipment, including $235.7 million to secure properties as part of the Yellow Corporation auction process.
• Financing Activities: Details on cash flow from financing activities were not available in the provided context.

Capital Expenditures:

• 2024 Investments: Saia invested over $1 billion in capital expenditures during 2024, reflecting a commitment to long-term growth and operational enhancements.
• 2025 Plans: The company anticipates net capital expenditures of over $700 million in 2025.

Potential Liquidity Concerns and Strengths:

Saia, Inc.'s financial position shows a mixed performance in 2024. While revenue increased, earnings per share and operating income decreased in Q4 2024. The company's cash reserves have also dropped dramatically from $296.2 million at the end of 2023 to $19.5 million at the end of 2024. This raises concerns about liquidity and financial flexibility.

Despite these concerns, Saia has several strengths:

• Increased Borrowing Capacity: Saia amended its unsecured revolving credit facility to increase borrowing capacity from $300 million to $600 million, extending the maturity to December 2029. This provides enhanced financial flexibility.
• Strategic Expansion: The company opened 21 new terminals and relocated 9 others in 2024, enhancing service capabilities and market presence.

The company's strategic expansion and operational improvements position it for potential growth as the industry shows signs of recovery. Revenue is expected to grow from $3.209 billion in 2024 to $4.265 billion in 2027.

Explore more insights into Saia, Inc.'s financial health: Breaking Down Saia, Inc. (SAIA) Financial Health: Key Insights for Investors

Saia, Inc. (SAIA) Valuation Analysis

Assessing whether Saia, Inc. (SAIA) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

Currently, detailed real-time data for these specific ratios as of late April 2025 is not available in my search results. However, investors typically use these metrics in comparison to industry averages and Saia's historical data to form an opinion on valuation. Keep in mind that the most recent fiscal year data available is for 2024.

To get the most up-to-date information, consider checking reputable financial data websites such as Yahoo Finance, Google Finance, or Bloomberg. These sources usually provide current stock prices, key ratios, and analyst ratings. Analyzing these details in context of Saia's performance and industry trends will help determine if the stock is fairly valued, overvalued, or undervalued.

Here’s a general overview of how these factors can influence valuation:

• Price-to-Earnings (P/E) Ratio: A high P/E ratio might suggest that a stock is overvalued because investors are paying more for each dollar of earnings. Conversely, a low P/E could indicate undervaluation.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value. A lower P/B ratio might suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is often used in valuation as it provides a clearer picture of a company's overall value relative to its operational cash flow (EBITDA). A lower ratio could indicate that the company is undervalued.

Stock price trends over the last 12 months, or longer, can provide insights into market sentiment and investor confidence. A steadily increasing stock price might reflect positive market perception, while a declining price could indicate concerns about the company's future prospects.

Dividend yield and payout ratios are relevant for companies that distribute dividends. However, as of now, it's important to verify Saia's current dividend policy and yield to assess its impact on valuation. If applicable, a higher dividend yield can make a stock more attractive to investors.

Analyst consensus, which represents the average rating from financial analysts (buy, hold, or sell), can also influence investor perception. A consensus rating of 'buy' suggests that analysts believe the stock is undervalued, while a 'sell' rating indicates the opposite.

For additional insights into Saia, Inc.'s broader strategic context, explore: Mission Statement, Vision, & Core Values of Saia, Inc. (SAIA).

Saia, Inc. (SAIA) Risk Factors

Saia, Inc. (SAIA) faces a variety of internal and external risks that could impact its financial health. These risks range from industry-specific challenges, such as intense competition and fluctuating fuel costs, to broader market conditions and regulatory changes.

Here's an overview of some key risks:

• Industry Competition: The less-than-truckload (LTL) industry is highly competitive. Saia competes with other large national carriers, regional carriers, and smaller niche players. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability.
• Economic Conditions: Demand for LTL services is closely tied to the overall economic environment. Economic downturns or recessions can significantly reduce shipping volumes, impacting Saia's revenue and earnings.
• Fuel Costs: Fuel is a major operating expense for trucking companies. Fluctuations in fuel prices can significantly impact Saia's profitability. While fuel surcharges can help offset these costs, there is often a lag between price increases and surcharge adjustments.
• Labor Market: The trucking industry faces ongoing challenges in attracting and retaining qualified drivers and other personnel. Labor shortages can lead to increased labor costs and operational inefficiencies.
• Regulatory Changes: Changes in transportation regulations, such as those related to safety, emissions, or hours of service, can increase compliance costs and impact operations.
• Cybersecurity Threats: As a technology-driven company, Saia faces the risk of cyberattacks and data breaches. These incidents can disrupt operations, damage reputation, and result in financial losses.

Recent earnings reports and filings may highlight specific operational, financial, or strategic risks. For example, discussions of expansion plans might include risks related to integrating new terminals or entering new markets. Financial risks could include concerns about debt levels, interest rate fluctuations, or access to capital.

Mitigation strategies or plans may include:

• Operational Efficiency: Improving efficiency through technology investments and process optimization can help mitigate the impact of rising costs and labor shortages.
• Pricing Discipline: Maintaining pricing discipline and focusing on value-added services can help protect margins in a competitive environment.
• Risk Management Programs: Implementing robust risk management programs, including cybersecurity protocols and safety initiatives, can help mitigate potential disruptions and losses.
• Financial Planning: Prudent financial planning, including managing debt levels and maintaining access to capital, can help navigate economic uncertainties.

Understanding these risks and Saia's strategies for mitigating them is crucial for investors assessing the company's financial health and future prospects. To gain a deeper understanding of Saia's values, check out: Mission Statement, Vision, & Core Values of Saia, Inc. (SAIA).

Saia, Inc. (SAIA) Growth Opportunities

Saia, Inc. (SAIA) is strategically positioned for future growth through several key drivers. These include service innovations, market expansions, strategic initiatives, and competitive advantages.

Key growth drivers for Saia, Inc. (SAIA) include:

• Service Innovations: Continuous enhancements to service offerings to meet evolving customer needs.
• Market Expansions: Extending its geographical footprint to capture new markets and increase market share.
• Acquisitions: Pursuing strategic acquisitions to expand capabilities and market presence.

While specific future revenue growth projections and earnings estimates beyond 2024 are not available, several factors point to continued growth:

• Strategic network expansion.
• Investments in technology.
• A focus on service quality.

Strategic initiatives and partnerships that may drive future growth include:

• Technology Investments: Implementing advanced technologies to improve efficiency and customer experience.
• Partnerships: Collaborating with other companies to expand service offerings and market reach.

Saia, Inc. (SAIA) possesses several competitive advantages that position it for sustained growth:

• Efficient Operations: Streamlined processes and effective cost management.
• Strong Customer Relationships: Building and maintaining strong relationships with customers.
• Experienced Management Team: A capable leadership team with a proven track record.

Here's an overview of Saia, Inc.'s (SAIA) financial performance:

These financial metrics reflect Saia, Inc.'s (SAIA) ability to generate revenue and maintain profitability, which are essential for funding future growth initiatives. Saia, Inc.'s (SAIA) mission, vision, and core values provide a solid foundation for its strategic direction. For more insights, you can explore: Mission Statement, Vision, & Core Values of Saia, Inc. (SAIA).