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Hub Group Inc Class A HUBG

Morningstar Rating
$43.42 −0.67 (1.52%)
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Company Report

Hub Group's Intermodal Revenue Is Still Falling, but Inflection Is Likely in 2024

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of 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 fleet in the industry, with access to more than 40,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Price vs Fair Value

HUBG is trading at a 5% premium.
Price
$44.09
Fair Value
$79.00
Uncertainty
Medium
1-Star Price
$95.10
5-Star Price
$23.80
Economic Moat
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Capital Allocation
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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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News

Trading Information

Previous Close Price
$44.09
Day Range
$43.1743.93
52-Week Range
$31.7347.59
Bid/Ask
$43.38 / $43.43
Market Cap
$2.76 Bil
Volume/Avg
334,210 / 546,324

Key Statistics

Price/Earnings (Normalized)
13.23
Price/Sales
0.66
Dividend Yield (Trailing)
Dividend Yield (Forward)
1.13%
Total Yield
5.13%

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
5,610

Competitors

Valuation

Metric
HUBG
JBHT
KNX
Price/Earnings (Normalized)
13.2327.2432.49
Price/Book Value
1.685.161.27
Price/Sales
0.661.671.27
Price/Cash Flow
7.3412.718.37
Price/Earnings
HUBG
JBHT
KNX

Financial Strength

Metric
HUBG
JBHT
KNX
Quick Ratio
1.580.980.62
Current Ratio
1.651.170.94
Interest Coverage
26.2315.062.96
Quick Ratio
HUBG
JBHT
KNX

Profitability

Metric
HUBG
JBHT
KNX
Return on Assets (Normalized)
8.11%9.96%2.36%
Return on Equity (Normalized)
14.34%20.81%3.95%
Return on Invested Capital (Normalized)
11.13%16.19%3.76%
Return on Assets
HUBG
JBHT
KNX
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Integrated Freight & Logistics Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
UPS
United Parcel Service Inc Class BRmhgy$126.4 Bil
FDX
FedEx CorpVvmwvw$60.3 Bil
DPSTF
DHL GroupVkzgc$55.4 Bil
DHLGY
DHL Group ADRPdsmsr$55.4 Bil
JBHT
JB Hunt Transport Services IncDjzrbx$21.4 Bil
EXPD
Expeditors International of Washington IncJlppr$17.1 Bil
ZTO
ZTO Express (Cayman) Inc ADRRdpnx$15.7 Bil
CHRW
C.H. Robinson Worldwide IncMbkxf$8.7 Bil
LSTR
Landstar System IncJjbcw$7.0 Bil

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