NasdaqGS:JBHT

Stock Analysis Report

J.B. Hunt Transport Services

Executive Summary

J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico.


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has J.B. Hunt Transport Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.4%

JBHT

-9.5%

US Transportation

-7.6%

US Market


1 Year Return

-6.5%

JBHT

2.9%

US Transportation

10.2%

US Market

Return vs Industry: JBHT underperformed the US Transportation industry which returned 5.1% over the past year.

Return vs Market: JBHT underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

JBHTIndustryMarket
7 Day-8.4%-9.5%-7.6%
30 Day-10.8%-5.3%-4.5%
90 Day-12.9%-0.5%-0.6%
1 Year-5.6%-6.5%4.9%2.9%12.5%10.2%
3 Year5.8%2.9%46.9%39.9%37.1%28.3%
5 Year25.2%19.3%53.8%23.1%60.8%43.2%

Price Volatility Vs. Market

How volatile is J.B. Hunt Transport Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is J.B. Hunt Transport Services undervalued compared to its fair value and its price relative to the market?

8.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBHT ($101.27) is trading below our estimate of fair value ($110.43)

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


Price To Earnings Ratio

PE vs Industry: JBHT is poor value based on its PE Ratio (21.3x) compared to the Transportation industry average (20.7x).

PE vs Market: JBHT is poor value based on its PE Ratio (21.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: JBHT is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: JBHT is overvalued based on its PB Ratio (4.7x) compared to the US Transportation industry average (2.2x).


Next Steps

Future Growth

How is J.B. Hunt Transport Services forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBHT's forecast earnings growth (11.3% per year) is above the savings rate (1.7%).

Earnings vs Market: JBHT's earnings (11.3% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: JBHT's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: JBHT's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBHT's Return on Equity is forecast to be high in 3 years time (25.1%)


Next Steps

Past Performance

How has J.B. Hunt Transport Services performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBHT has high quality earnings.

Growing Profit Margin: JBHT's current net profit margins (5.6%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: JBHT's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: JBHT's earnings growth over the past year (5.5%) is below its 5-year average (8.1% per year).

Earnings vs Industry: JBHT earnings growth over the past year (5.5%) exceeded the Transportation industry -14.1%.


Return on Equity

High ROE: JBHT's Return on Equity (22.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is J.B. Hunt Transport Services's financial position?


Financial Position Analysis

Short Term Liabilities: JBHT's short term assets ($1.5B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: JBHT's short term assets ($1.5B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: JBHT's debt to equity ratio (51.8%) is considered high.

Reducing Debt: JBHT's debt to equity ratio has reduced from 77.4% to 51.8% over the past 5 years.

Debt Coverage: JBHT's debt is well covered by operating cash flow (106.3%).

Interest Coverage: JBHT's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: JBHT's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is J.B. Hunt Transport Services's current dividend yield, its reliability and sustainability?

1.07%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%4.0%industryaverage1.8%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: JBHT's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: JBHT's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: JBHT's dividends per share have been stable in the past 10 years.

Growing Dividend: JBHT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), JBHT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBHT's dividends in 3 years are forecast to be well covered by earnings (16% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

John Roberts (55yo)

9.1yrs

Tenure

US$6,846,236

Compensation

Mr. John N. Roberts, III has been the Chief Executive Officer and President of JB Hunt Transport Services Inc., since January 1, 2011. Mr. Roberts served as Executive Vice President of JB Hunt Transport Se ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.85M) is below average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Roberts
President9.1yrsUS$6.85m0.31% $33.4m
David Mee
Executive VP of Finance & Administration and CFO10.3yrsUS$2.75m0.10% $11.0m
Terrence Matthews
Executive VP & President of Intermodal8.1yrsUS$2.76m0.057% $6.1m
Shelley Simpson
Corporate Executive VP2.8yrsUS$2.75m0.13% $13.6m
Nicholas Hobbs
Executive VP & President of Dedicated Contract Services0yrsUS$2.74m0.080% $8.6m
Craig Harper
COO & Executive VP0yrsUS$1.73m0.033% $3.5m
John Kuhlow
Senior VP of Finance0yrsno data0.011% $1.1m
Stuart Scott
Executive VP & Chief Information Officer4.1yrsno data0.0088% $940.9k
A. Delco
Vice President of Finance & Investor Relations0yrsno datano data
Jennifer Boattini
Senior VP of Legal & Litigation0yrsno data0.012% $1.3m

8.1yrs

Average Tenure

55yo

Average Age

Experienced Management: JBHT's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Roberts
President9.1yrsUS$6.85m0.31% $33.4m
Wayne Garrison
Director39.1yrsUS$278.80k1.4% $150.1m
J. Hunt
Vice Chairman0yrsUS$215.00k0.067% $7.1m
James Thompson
Chairman of the Board9.1yrsUS$376.04k0.038% $4.1m
James Robo
Lead Director0yrsUS$286.93k0.043% $4.6m
Gary George
Independent Director13.5yrsUS$249.89k1.06% $113.0m
Sharilyn Gasaway
Independent Director11yrsUS$259.95k0.021% $2.2m
Douglas Duncan
Independent Director9.9yrsUS$251.47k0.013% $1.4m
Coleman Peterson
Independent Director15.8yrsUS$260.76k0.038% $4.1m
Francesca Edwardson
Independent Director8.7yrsUS$247.88k0.019% $2.1m

10.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: JBHT's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JBHT insiders have only sold shares 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

J.B. Hunt Transport Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: J.B. Hunt Transport Services, Inc.
  • Ticker: JBHT
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: US$10.692b
  • Shares outstanding: 106.21m
  • Website: https://www.jbhunt.com

Number of Employees


Location

  • J.B. Hunt Transport Services, Inc.
  • 615 J.B. Hunt Corporate Drive
  • Lowell
  • Arkansas
  • 72745
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JBHTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1983
JB1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1983
JBHTWBAG (Wiener Boerse AG)YesCommon StockATEURNov 1983
0J71LSE (London Stock Exchange)YesCommon StockGBUSDNov 1983
J1BH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. It operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Truckload (JBT). The JBI segment offers intermodal freight solutions, including origin and destination pickup, and delivery services. It operates 88,739 pieces of company-owned trailing equipment; owns and maintains its own chassis fleet of 81,442 units; and manages a fleet of 5,017 company-owned tractors, 633 independent contractor trucks, and 6,208 company drivers. The DCS segment designs, develops, and executes supply-chain solutions that support various transportation networks. As of December 31, 2018, it operated 9,652 company-owned trucks, 412 customer-owned trucks, and 51 independent contractor trucks, as well as 20,344 owned pieces of trailing equipment and 6,366 customer-owned trailers. The ICS segment offers traditional freight brokerage and transportation logistics solutions; and flatbed, refrigerated, expedited, and less-than-truckload solutions, as well as various dry-van and intermodal solutions. It also provides single-source logistics management for customers that desire to outsource their transportation functions. This segment operates 44 remote sales offices or branches. The JBT segment offers full-load and dry-van freight services by utilizing tractors operating over roads and highways. As of December 31, 2018, it operated 1,139 company-owned tractors. The company also transports or arranges for the transportation of freight, including general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. J.B. Hunt Transport Services, Inc. was incorporated in 1961 and is headquartered in Lowell, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:54
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.