J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of JBHT, it is a financially-robust , dividend-paying company with a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on J.B. Hunt Transport Services here.
Proven track record with adequate balance sheet and pays a dividend
JBHT delivered a bottom-line expansion of 88% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 38%. which is an notable feat for the company. JBHT’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that JBHT manages its cash and cost levels well, which is a crucial insight into the health of the company. JBHT appears to have made good use of debt, producing operating cash levels of 0.94x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that JBHT is a great dividend company, with a current yield standing at 1.0%. JBHT has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For J.B. Hunt Transport Services, I’ve put together three essential aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for JBHT’s future growth? Take a look at our free research report of analyst consensus for JBHT’s outlook.
- Valuation: What is JBHT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether JBHT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JBHT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.