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HUBG

Hub Group NasdaqGS:HUBG Stock Report

Last Price

US$80.68

Market Cap

US$2.8b

7D

5.6%

1Y

26.1%

Updated

07 Aug, 2022

Data

Company Financials +
HUBG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends0/6

HUBG Stock Overview

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America.

Hub Group, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hub Group
Historical stock prices
Current Share PriceUS$80.68
52 Week HighUS$87.21
52 Week LowUS$60.81
Beta0.91
1 Month Change14.21%
3 Month Change7.42%
1 Year Change26.06%
3 Year Change94.36%
5 Year Change127.59%
Change since IPO1,949.02%

Recent News & Updates

Jul 14
Is There Now An Opportunity In Hub Group, Inc. (NASDAQ:HUBG)?

Is There Now An Opportunity In Hub Group, Inc. (NASDAQ:HUBG)?

Hub Group, Inc. ( NASDAQ:HUBG ), might not be a large cap stock, but it saw a decent share price growth in the teens...

Jul 10

Hub Group: Innovative Business Model, But Not Cheap Enough Yet

Hub Group, Inc. is a supply chain solutions provider offering transportation and logistics management services. Under my worst-case scenario, I think that labor shortages, slowdowns, or stoppages may be likely. Among the recent innovations, in my view, new robotic process automation and artificial intelligence will likely improve efficiency and free cash flow generation. Hub Group, Inc. (HUBG) is launching many initiatives to become more efficient and more innovative. I also noted profit improvement initiatives, which will likely lead to revenue generation. With all that being said, I believe that the upside potential in the stock price is not sufficient to justify a position in the stock. There are many risks, which may push the stock price down. I may try to grab shares, but not at the current stock price. Keep in mind that I do like Hub Group, but I dislike its stock price. The Hub Group Mission Hub Group, Inc is a supply chain solutions provider offering transportation and logistics management services. The company provides services such as truckload, temperature-controlled, dedicated and regional trucking. Most clients come from the consumer products industry as well as the retail and ecommerce sector. Hence, a decline in any of these activities may lead to a decline in the company’s revenue. Investor Presentation I decided to research Hub Group once I noticed several profit improvement initiatives announced in a recent quarterly report. In my view, the most relevant are the efficiencies coming from sharing of equipment and drivers as well as the delivery of revenue under a new business line called Intermodal and Transportation Solutions: As part of our profit improvement initiatives we have focused on realizing efficiencies between our dedicated and drayage trucking operations, including through the sharing of equipment and drivers, and by leveraging a combined driver support services function. Our dedicated and drayage teams now operate as one combined organization. As a result, beginning in first quarter 2022 we now report revenue for these operations under the “Intermodal and Transportation Solutions” line of business. Source: Hub Group, Inc. Reports First Quarter 2022 Results Besides, management announced new investments in equipment and technology, which will likely enhance revenue generation from 2022. Among the new equipment, management expects to add more intermodal containers, GPS, driver tablets, and new software applications. Investor Presentation Investor Presentation Analysts Are Expecting Sales Growth, Positive Net Income, And Growing Free Cash Flow In my view, investment analysts are relatively optimistic about HUBG. They expect a decline in sales growth in 2023, but sales growth in 2022 is expected to be close to 27%. The EBITDA margin may be close to double digit, and operating margin may reach 8% to 6% from 2022 to 2024. Marketscreener.com With that about the income statement, the cash flow statement gets even more interesting. Estimates about HUBG include FCF/Sales between 4.3% and 3.25%. The capex/sales ratio is also expected to stand at around 3.6%. Have a look at the figures of analysts because I based some of my models on the estimates given by other financial analysts. marketscreener.com Management is also optimistic about the year 2022. In a recent presentation, HUBG delivered 2022 sales guidance of $5.3-$5.5 billion and capital expenditures close to $240-$265 million. I used some of these figures in my base case scenario: We expect that our 2022 diluted earnings per share will range from $9.00 to $10.00. We estimate revenue will range from $5.3 to $5.5 billion, and that gross margin as a percentage of revenue will range from 15.6% to 16.0%. We estimate our costs and expenses will range from $420 to $440 million for the year. We project our effective tax rate for the year will be 24-25%. We expect capital expenditures for 2022 to range from $240 to $265 million. Source: Hub Group, Inc. Reports First Quarter 2022 Results Base Case Scenario: Investments In Technology Could Lead To A Share Price Of $94 Under my base case scenario, I assumed that investments in technology will successfully enhance the company’s relationships with clients, drivers, and vendors. Among the recent innovations, in my view, new robotic process automation and artificial intelligence will likely improve efficiency and free cash flow generation: In 2021, we also delivered solutions using computer visioning, robotic process automation and artificial intelligence to create increased efficiency in our operations and back office functions. This included the automation of manual processes, using human augmentation solutions to allow our experienced supply chain professionals to make critical decisions while allowing a robot to complete the repeatable tasks, and developing learning-based robots to drive better decision support to the hands of operating teams. Source: 10-k Besides, I think that a lot of technological innovation will come from acquisitions of innovative competitors. Management has already reported meaningful acquisition of Choptank Transport, LLC and NonstopDelivery, LLC: On October 19, 2021, we acquired 100% of the equity interests of Choptank Transport, LLC. The acquisition added scale to our truck brokerage operation, enhanced our refrigerated trucking transportation services offering and complemented our growing fleet of refrigerated intermodal containers. On December 9, 2020, we acquired NonstopDelivery, LLC. NSD provides residential final mile delivery services throughout the United States. The financial results of NSD, since the date of acquisition, are included in our logistics line of business. Source: 10-k

Shareholder Returns

HUBGUS LogisticsUS Market
7D5.6%1.0%1.0%
1Y26.1%-3.1%-12.9%

Return vs Industry: HUBG exceeded the US Logistics industry which returned -3.1% over the past year.

Return vs Market: HUBG exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is HUBG's price volatile compared to industry and market?
HUBG volatility
HUBG Average Weekly Movement5.1%
Logistics Industry Average Movement6.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: HUBG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HUBG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19714,700David Yeagerhttps://www.hubgroup.com

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company’s transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services.

Hub Group, Inc. Fundamentals Summary

How do Hub Group's earnings and revenue compare to its market cap?
HUBG fundamental statistics
Market CapUS$2.80b
Earnings (TTM)US$318.00m
Revenue (TTM)US$5.03b

8.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HUBG income statement (TTM)
RevenueUS$5.03b
Cost of RevenueUS$4.20b
Gross ProfitUS$832.19m
Other ExpensesUS$514.19m
EarningsUS$318.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.18
Gross Margin16.54%
Net Profit Margin6.32%
Debt/Equity Ratio18.7%

How did HUBG perform over the long term?

See historical performance and comparison