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Hub Group Inc Class A HUBG

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Stock XNAS Rating as of
$39.93 −0.26 (0.65%)
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As of Delayed Price Closed
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Company Report

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Hub Group Earnings: Intermodal Still Navigating Trucking Sector Competition

Matthew Young

Hub Group's consolidated top line fell 13% year over year (excluding fuel) and missed our expected run rate for the flagship intermodal division. We figured intermodal revenue would decline again this quarter on lingering weakness in freight demand and pricing (including abundant truckload market capacity), but we expected greater signs of improvement in retailer inventory restocking, which would benefit volumes. Logistics-segment revenue was up slightly because of the Forward Air Final Mile tuck-in acquisition, which masked ongoing weakness in truck brokerage pricing conditions.

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Price vs Fair Value

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HUBG is trading at a 4% discount.
Price
$40.34
Fair Value
$74.00
Uncertainty
Medium
1-Star Price
$53.20
5-Star Price
$75.90
Economic Moat
Dvylv
Capital Allocation
Ddksjrb

Bulls Say, Bears Say

Bulls

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

Bears

Intermodal container demand and rates will face lingering pressure in first-half 2024 from depressed rates in the competing full-truckload industry.

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Trading Information

Previous Close Price
$40.19
Day Range
$38.86–41.14
52-Week Range
$31.73–47.59
Bid/Ask
$38.90 / $41.56
Market Cap
$2.50 Bil
Volume/Avg
569,414 / 491,829

Key Statistics

Price/Earnings (Normalized)
15.30
Price/Sales
0.61
Dividend Yield (Trailing)
0.31%
Dividend Yield (Forward)
1.25%
Total Yield
6.48%

Company Profile

Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of 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 is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, last-mile, and dedicated offerings.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Small Value
Total Number of Employees
2,900
Website
https://www.hubgroup.com

Competitors

Valuation

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Metric
HUBG
KNX
CHRW
Price/Earnings (Normalized)
 15.3028.2021.81
Price/Book Value
 1.561.115.78
Price/Sales
 0.611.070.48
Price/Cash Flow
 6.807.2618.66
Price/Earnings
HUBG
KNX
CHRW

Financial Strength

Metric
HUBG
KNX
CHRW
Quick Ratio
 1.200.621.32
Current Ratio
 1.290.941.40
Interest Coverage
 15.832.964.88
Quick Ratio
HUBG
KNX
CHRW

Profitability

Metric
HUBG
KNX
CHRW
Return on Assets (Normalized)
 6.30%2.36%7.18%
Return on Equity (Normalized)
 11.11%3.95%28.44%
Return on Invested Capital (Normalized)
 8.53%3.76%13.64%
Return on Assets
HUBG
KNX
CHRW
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