NasdaqGS:HTLD

Stock Analysis Report

Executive Summary

Heartland Express, Inc., together with its subsidiaries, operates as a short-to-medium haul truckload carrier in the United States and Canada.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Heartland Express's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HTLD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

HTLD

-2.5%

US Transportation

0.03%

US Market


1 Year Return

8.7%

HTLD

17.0%

US Transportation

18.6%

US Market

Return vs Industry: HTLD underperformed the US Transportation industry which returned 17% over the past year.

Return vs Market: HTLD underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

HTLDIndustryMarket
7 Day-2.2%-2.5%0.03%
30 Day-5.4%-2.2%1.7%
90 Day-2.9%2.5%5.7%
1 Year9.1%8.7%19.2%17.0%21.1%18.6%
3 Year-1.5%-2.6%56.2%48.9%45.6%36.2%
5 Year-17.3%-18.8%62.0%30.8%71.1%52.3%

Price Volatility Vs. Market

How volatile is Heartland Express's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Heartland Express undervalued compared to its fair value and its price relative to the market?

34.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTLD ($20.93) is trading below our estimate of fair value ($31.78)

Significantly Below Fair Value: HTLD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HTLD is poor value based on its PE Ratio (20.8x) compared to the Transportation industry average (18.8x).

PE vs Market: HTLD is poor value based on its PE Ratio (20.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: HTLD is poor value based on its PEG Ratio (23.7x)


Price to Book Ratio

PB vs Industry: HTLD is overvalued based on its PB Ratio (2.6x) compared to the US Transportation industry average (2.4x).


Next Steps

Future Growth

How is Heartland Express forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTLD's forecast earnings growth (0.9% per year) is below the savings rate (1.7%).

Earnings vs Market: HTLD's earnings (0.9% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: HTLD's earnings are forecast to grow, but not significantly.

Revenue vs Market: HTLD's revenue (6.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HTLD's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HTLD's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Heartland Express performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HTLD has a large one-off gain of $33.0M impacting its September 30 2019 financial results.

Growing Profit Margin: HTLD's current net profit margins (14.3%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: HTLD's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: HTLD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HTLD had negative earnings growth (-7%) over the past year, making it difficult to compare to the Transportation industry average (-45%).


Return on Equity

High ROE: HTLD's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Heartland Express's financial position?


Financial Position Analysis

Short Term Liabilities: HTLD's short term assets ($198.4M) exceed its short term liabilities ($86.8M).

Long Term Liabilities: HTLD's short term assets ($198.4M) exceed its long term liabilities ($189.1M).


Debt to Equity History and Analysis

Debt Level: HTLD's debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: HTLD's debt to equity ratio has increased from 4.6% to 7.9% over the past 5 years.

Debt Coverage: HTLD's debt is well covered by operating cash flow (275.5%).

Interest Coverage: HTLD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HTLD has a high level of physical assets or inventory.

Debt Coverage by Assets: HTLD's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Heartland Express's current dividend yield, its reliability and sustainability?

0.38%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: HTLD's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: HTLD's dividend (0.38%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: HTLD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HTLD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HTLD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HTLD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Heartland Express's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Mike Gerdin (49yo)

8.3yrs

Tenure

US$705,892

Compensation

Mr. Michael J. Gerdin, also known as Mike, has been the Chief Executive Officer and President of Heartland Express, Inc. since September 2011 and since May 2006 respectively. Mr. Gerdin served as the Presi ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD705.89K) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

48.5yo

Average Age

Experienced Management: HTLD's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

71yo

Average Age

Experienced Board: HTLD's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: HTLD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$994,36413 Sep 19
Larry Gordon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares44,944
Max PriceUS$22.12
SellUS$30,89818 Mar 19
Kent Rigdon
EntityIndividual
Role
Head of Sales
Vice President of Sales
Shares1,538
Max PriceUS$20.09

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Gerdin (49yo)

    Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: US$705.89k
  • Todd Trimble (48yo)

    Vice President of Midwestern Operations

    • Tenure: 3.1yrs
    • Compensation: US$162.13k
  • Christopher Strain (44yo)

    VP of Finance

    • Tenure: 2.1yrs
    • Compensation: US$238.29k
  • Kent Rigdon (55yo)

    Vice President of Sales

    • Tenure: 5.6yrs
    • Compensation: US$267.34k

Board Members

  • Benjamin Allen (72yo)

    Independent Director

    • Tenure: 24.9yrs
    • Compensation: US$56.27k
  • Mike Gerdin (49yo)

    Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: US$705.89k
  • Larry Gordon (76yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$44.59k
  • Jim Pratt (71yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$60.50k
  • Tahira Hira (75yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$55.87k
  • Brenda Neville (56yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$46.50k
  • Michael Sullivan (66yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$30.47k

Company Information

Heartland Express, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heartland Express, Inc.
  • Ticker: HTLD
  • Exchange: NasdaqGS
  • Founded: 1978
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$1.699b
  • Shares outstanding: 82.02m
  • Website: https://www.heartlandexpress.com

Number of Employees


Location

  • Heartland Express, Inc.
  • 901 North Kansas Avenue
  • North Liberty
  • Iowa
  • 52317
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HTLDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1986
HLXDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1986

Biography

Heartland Express, Inc., together with its subsidiaries, operates as a short-to-medium haul truckload carrier in the United States and Canada. The company primarily provides nationwide asset-based dry van  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:40
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.