NasdaqGS:HUBG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.4%

HUBG

5.0%

US Logistics

3.4%

US Market


1 Year Return

3.6%

HUBG

-9.7%

US Logistics

5.4%

US Market

Return vs Industry: HUBG exceeded the US Logistics industry which returned -9.7% over the past year.

Return vs Market: HUBG underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

HUBGIndustryMarket
7 Day3.4%5.0%3.4%
30 Day3.2%-6.1%-1.0%
90 Day21.3%6.1%-0.4%
1 Year3.6%3.6%-7.5%-9.7%7.7%5.4%
3 Year23.0%23.0%15.7%7.9%46.2%36.8%
5 Year22.8%22.8%28.7%15.4%65.6%47.5%

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?

8.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HUBG ($47.6) is trading below our estimate of fair value ($51.94)

Significantly Undervalued: 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 (14.2x) compared to the Logistics industry average (22.8x).

PE vs Market: HUBG is good value based on its PE Ratio (14.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HUBG is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: HUBG is good value based on its PB Ratio (1.6x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

How is Hub Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUBG's forecast earnings growth (2.7% per year) is below the savings rate (2.7%).

Earnings vs Market: HUBG's earnings (2.7% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: HUBG's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HUBG's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HUBG's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Hub Group performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HUBG's earnings have grown by 17.5% 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 (-17.3%) over the past year, making it difficult to compare to the Logistics industry average (-9.9%).


Return on Equity

High ROE: HUBG's Return on Equity (10.9%) is considered low.


Return on Assets

ROA vs Industry: HUBG has a higher Return on Assets than the Logistics industry average last year.


Return on Capital Employed

ROCE Improving: HUBG's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hub Group's financial position?


Financial Position Analysis

Short Term Liabilities: HUBG's short term assets ($586.9M) exceeds its short term liabilities ($477.1M)

Long Term Liabilities: HUBG's short term assets (586.9M) exceeds its long term liabilities (420.4M)


Debt to Equity History and Analysis

Debt Level: HUBG's debt to equity ratio (28.8%) is considered satisfactory

Reducing Debt: HUBG's debt to equity ratio has increased from 5.3% to 28.8% over the past 5 years.

Debt Coverage: HUBG's debt is well covered by operating cash flow (83.4%).

Interest Coverage: HUBG's interest payments on its debt are well covered by EBIT (18x coverage).


Balance Sheet

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

Debt Coverage by Assets: HUBG's debt is covered by short term assets (assets are 1.970890x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

3.5yrs

Average management tenure


CEO

David Yeager (66yo)

24.6yrs

Tenure

US$5,079,037

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 ($USD5.08M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.5yrs

Average Tenure

52yo

Average Age

Experienced Management: HUBG's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

65yo

Average Age

Experienced Board: HUBG's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$211,05023 Aug 19
Charles Reaves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$42.21

Ownership Breakdown


Management Team

  • David Yeager (66yo)

    Chairman & CEO

    • Tenure: 24.6yrs
    • Compensation: US$5.08m
  • Terri Pizzuto (60yo)

    Executive VP

    • Tenure: 12.6yrs
    • Compensation: US$2.05m
  • Brian Alexander (39yo)

    Executive Vice President of Unyson Logistics

    • Tenure: 4.1yrs
  • Michele McDermott

    Chief Human Resources Officer

    • Tenure: 0.2yrs
  • Geoff DeMartino

    Vice President of Corporate Development

    • Tenure: 3.7yrs
  • Matt Yeager

    Executive Vice President of Specialized Intermodal Services & Procurement

    • Tenure: 0.8yrs
  • Phil Yeager (31yo)

    President & COO

    • Tenure: 0.3yrs
    • Compensation: US$1.79m
  • Doug Beck (52yo)

    Executive VP

    • Tenure: 3.4yrs
  • Vava Dimond (52yo)

    Executive VP & Chief Information Officer

    • Tenure: 4.5yrs
    • Compensation: US$1.66m
  • Brian Meents

    Executive Vice President of Account Management

    • Tenure: 0.8yrs

Board Members

  • Martin Slark (65yo)

    Lead Director

    • Tenure: 2.9yrs
    • Compensation: US$370.60k
  • David Yeager (66yo)

    Chairman & CEO

    • Tenure: 24.6yrs
    • Compensation: US$5.08m
  • Jonathan Ward (64yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$370.60k
  • Charles Reaves (80yo)

    Independent Director

    • Tenure: 23.7yrs
    • Compensation: US$370.60k
  • James Kenny (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$370.60k
  • Peter McNitt (64yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$370.60k
  • Mary Boosalis (64yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$272.71k

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$1.622b
  • Shares outstanding: 34.08m
  • Website: https://www.hubgroup.com

Number of Employees


Location

  • Hub Group, Inc.
  • 2000 Clearwater Drive
  • Oak Brook
  • Illinois
  • 60523
  • 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 arr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:37
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.