Hub Group Inc Class A HUBG

Morningstar Rating
$30.15 +0.57 (1.93%)
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Company Report

Hub's Disclosure Remains Sparse Due to Accounting Errors

Hub Group is the second-largest intermodal marketing company, trailing only J.B. Hunt and ahead of the intermodal divisions of STG Logistics, Schneider National, and Knight-Swift. Hub also ranks among the 25 largest asset-light truck brokers by gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest domestic container fleet in the industry, with access to more than 50,000 containers. By gross revenue, J.B. Hunt is the largest intermodal marketing company, followed by Hub and the intermodal divisions of STG Logistics, Schneider National, and Knight-Swift.

Price vs Fair Value

HUBG is trading within a range we consider fairly valued.
Price
$30.13
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Intermodal shipping enjoys favorable long-term trends, including secular constraints on truckload capacity expansion and shippers' efforts to minimize transportation costs through mode conversions (truck to rail).

Bears

Hub is grappling with an accounting restatement due to errors (related to understating purchased transportation costs) in its 2023-25 financial statements, which will translate into elevated auditing outlays, increased litigation risk, and management distraction.

News

Trading Information

Previous Close Price
$29.58
Day Range
$29.37–30.33
52-Week Range
$29.37–53.26
Bid/Ask
$25.00 / $38.17
Shares Outstanding
61.15M
Market Cap
$1.84B
Volume/Avg
2M / 1M

Key Statistics

Price/Earnings (Normalized)
16.25
Price/Sales
0.49
Dividend Yield (Trailing)
1.66%
Dividend Yield (Forward)
1.66%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
2.99%

Company Profile

Hub Group ranks among the largest providers of rail intermodal service. Approximately 60% of consolidated revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Hub's logistics segment includes its asset-light truck brokerage operations along with its outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery offerings. Hub often makes tuck-in acquisitions that expand its brokerage, last-mile, and dedicated offerings.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Small Value
Total Number of Employees
6,604

Competitors

Valuation

Metric
HUBG
CHRW
KNX
Price/Earnings (Normalized)
16.2527.3948.45
Price/Book Value
1.0811.021.52
Price/Sales
0.491.091.38
Price/Cash Flow
5.7623.139.53
Price/Earnings
HUBG
CHRW
KNX

Financial Strength

Metric
HUBG
CHRW
KNX
Quick Ratio
1.361.520.63
Current Ratio
1.471.590.88
Interest Coverage
11.3714.541.46
Quick Ratio
HUBG
CHRW
KNX

Profitability

Metric
HUBG
CHRW
KNX
Return on Assets (Normalized)
3.98%12.64%1.80%
Return on Equity (Normalized)
6.83%38.25%3.10%
Return on Invested Capital (Normalized)
5.43%21.19%3.00%
Return on Assets
HUBG
CHRW
KNX

Integrated Freight & Logistics Industry Comparables

1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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LOCK|KtV#!$lLOCK|R#$24B
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JBHT
LOCK|GMQJb@cLOCK|!zmKq$21B
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LOCK|c%$LMnF!LOCK|sgX$18B
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Landstar System Inc
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