NasdaqGS:HUBG

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Executive Summary

Hub Group, Inc., an asset-light freight transportation management company, provides intermodal, trucking, truck brokerage, and other logistics services in North America.

Rewards

Trading at 14% below our estimate of its fair value

Earnings are forecast to grow 20.56% per year

Risk Analysis

No risks detected for HUBG from our risk checks.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Hub Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

5.4%

HUBG

3.7%

US Logistics

3.8%

US Market


1 Year Return

23.5%

HUBG

9.2%

US Logistics

9.7%

US Market

Return vs Industry: HUBG exceeded the US Logistics industry which returned 9.9% over the past year.

Return vs Market: HUBG exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

HUBGIndustryMarket
7 Day5.4%3.7%3.8%
30 Day11.6%13.6%11.4%
90 Day7.7%13.1%6.8%
1 Year23.5%23.5%11.9%9.2%12.1%9.7%
3 Year39.8%39.8%8.2%1.1%36.2%27.2%
5 Year13.6%13.6%12.9%1.1%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hub Group undervalued compared to its fair value and its price relative to the market?

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HUBG ($49.28) is trading below our estimate of fair value ($57.31)

Significantly Below Fair Value: HUBG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HUBG is good value based on its PE Ratio (16.9x) compared to the Logistics industry average (21x).

PE vs Market: HUBG is poor value based on its PE Ratio (16.9x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: HUBG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HUBG is good value based on its PB Ratio (1.5x) compared to the US Logistics industry average (2.3x).


Next Steps

Future Growth

How is Hub Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUBG's forecast earnings growth (20.6% per year) is above the savings rate (2.2%).

Earnings vs Market: HUBG's earnings (20.6% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HUBG's revenue (3.8% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: HUBG's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUBG's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Hub Group performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUBG has high quality earnings.

Growing Profit Margin: HUBG's current net profit margins (2.7%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: HUBG's earnings have grown by 15% per year over the past 5 years.

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

Earnings vs Industry: HUBG had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Logistics industry average (-7.9%).


Return on Equity

High ROE: HUBG's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Hub Group's financial position?


Financial Position Analysis

Short Term Liabilities: HUBG's short term assets ($748.9M) exceed its short term liabilities ($502.8M).

Long Term Liabilities: HUBG's short term assets ($748.9M) exceed its long term liabilities ($503.1M).


Debt to Equity History and Analysis

Debt Level: HUBG's debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: HUBG's debt to equity ratio has increased from 16.4% to 34.8% over the past 5 years.

Debt Coverage: HUBG's debt is well covered by operating cash flow (61.2%).

Interest Coverage: HUBG's interest payments on its debt are well covered by EBIT (16.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Hub Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HUBG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HUBG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HUBG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HUBG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

David Yeager (66yo)

25.25yrs

Tenure

US$4,430,221

Compensation

Mr. David P. Yeager has been the Chief Executive Officer of Hub Group Inc. since March 1995. Mr. Yeager served as the President of Hub Chicago from October 1985 to December 1991. He served as a Vice Presid ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD4.43M) is about average for companies of similar size in the US market ($USD4.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Yeager
Chairman & CEO25.25yrsUS$4.43m1.97% $33.2m
Phillip Yeager
President & COO0.92yrUS$1.38m0.18% $3.0m
Terri Pizzuto
Executive VP13.25yrsUS$1.76m0.60% $10.1m
Vava Dimond
Executive VP & Chief Information Officer5.17yrsUS$1.50m0.22% $3.6m
Douglas Beck
Executive VP4.08yrsUS$1.38m0.21% $3.6m
Geoffrey DeMartino
Vice President of Corporate Development4.33yrsno datano data
Brian Meents
Executive Vice President of Account Management1.42yrsno datano data
Michele McDermott
Chief Human Resources Officer0.83yrno data0.035% $591.4k
Matthew Yeager
Executive Vice President of Specialized Intermodal Services & Procurement1.42yrsno datano data
Brian Alexander
Executive Vice President of Unyson Logistics4.75yrsno data0.092% $1.5m

4.2yrs

Average Tenure

52yo

Average Age

Experienced Management: HUBG's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Yeager
Chairman & CEO25.25yrsUS$4.43m1.97% $33.2m
Martin Slark
Independent Director24.33yrsUS$300.02k0.32% $5.5m
Jonathan Ward
Independent Director8.42yrsUS$300.02k0.069% $1.2m
Charles Reaves
Independent Director24.33yrsUS$300.02k0.20% $3.4m
James Kenny
Independent Director4.08yrsUS$300.02k0.063% $1.1m
Peter McNitt
Lead Independent Director0.58yrUS$300.02k0.044% $743.4k
Mary Boosalis
Independent Director2.08yrsUS$300.02k0.039% $656.1k
Jenell Ross
Independent Director0.083yrno datano data

6.3yrs

Average Tenure

65yo

Average Age

Experienced Board: HUBG's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Hub Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hub Group, Inc.
  • Ticker: HUBG
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$1.685b
  • Shares outstanding: 34.19m
  • Website: https://www.hubgroup.com

Number of Employees


Location

  • Hub Group, Inc.
  • 2000 Clearwater Drive
  • Oak Brook
  • Illinois
  • 60523-8809
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUBGNasdaqGS (Nasdaq Global Select)YesClass A Common SharesUSUSDMar 1996
HBGDB (Deutsche Boerse AG)YesClass A Common SharesDEEURMar 1996

Biography

Hub Group, Inc., an asset-light freight transportation management company, provides intermodal, trucking, truck brokerage, and other logistics services in North America. Its intermodal services include arranging for the movement of its customers’ freight in containers and trailers over long distances. The company contracts with railroads to provide transportation for the long-haul portion of the shipment between origin or destination and rail terminals for pickup and delivery; and negotiates drayage rates for the transportation between origin and destination points. It also offers truck brokerage services; and warehouse and transportation logistics services, including retailer-driven collaborative consolidation programs, as well as a range of transportation management services and technology solutions, such as shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility under the Unyson Logistics and CaseStack names. In addition, the company provides multi-modal transportation services, such as small parcel, heavyweight, expedited, less-than-truckload, truckload, intermodal, railcar, and international shipping. As of December 31, 2019, it owned approximately 38,000 53-foot containers for use on the Union Pacific and the Norfolk Southern railroads. Hub Group, Inc. was founded in 1971 and is headquartered in Oak Brook, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:10
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.