Hub Group Inc Class A HUBG

Morningstar Rating
$43.86 −0.47 (1.06%)
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Company Report

Depressed Truckload Rates Keeping Hub Group's Intermodal Pricing Off Track

Hub Group is the second-largest intermodal marketing company, or IMC, and also ranks among the 25 largest asset-light truck brokers in terms of gross revenue. In its flagship intermodal division, Hub contracts with the Class I railroads for the line-haul movement of its owned containers. It operates the second-largest domestic container fleet in the industry, with access to more than 40,000 containers. By gross revenue, J.B. Hunt is the largest IMC, followed by Hub and the intermodal divisions of STG Logistics, Schneider National and Knight Swift.

Price vs Fair Value

HUBG is trading within a range we consider fairly valued.
Price
$43.88
Fair Value
$68.00
Uncertainty
Medium
1-Star Price
$94.94
5-Star Price
$36.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Intermodal shipping enjoys positive long-term trends, particularly secular constraints on truckload capacity growth and shippers' efforts to minimize transportation costs through mode conversions (truck to rail).

Bears

Lackluster retail sector inventory replenishment is a near-term headwind to Hunt's overall freight volume.

News

Trading Information

Previous Close Price
$44.33
Day Range
$43.7944.55
52-Week Range
$31.7348.39
Bid/Ask
$20.00 / $70.20
Market Cap
$2.73 Bil
Volume/Avg
627,278 / 453,237

Key Statistics

Price/Earnings (Normalized)
23.12
Price/Sales
0.68
Dividend Yield (Trailing)
0.85%
Dividend Yield (Forward)
1.14%
Total Yield
4.04%

Company Profile

Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Hub's logistics segment includes its asset light truck brokerage operations, along with its outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery offerings. Hub is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, last-mile, and dedicated offerings.
Sector
Industrials
Industry
Integrated Freight & Logistics
Stock Style Box
Small Value
Total Number of Employees
5,813

Competitors

Valuation

Metric
HUBG
KNX
CHRW
Price/Earnings (Normalized)
23.1260.4632.36
Price/Book Value
1.661.198.42
Price/Sales
0.681.110.74
Price/Cash Flow
8.678.2625.34
Price/Earnings
HUBG
KNX
CHRW

Financial Strength

Metric
HUBG
KNX
CHRW
Quick Ratio
1.270.661.30
Current Ratio
1.320.881.37
Interest Coverage
9.951.3418.50
Quick Ratio
HUBG
KNX
CHRW

Profitability

Metric
HUBG
KNX
CHRW
Return on Assets (Normalized)
4.48%1.13%7.30%
Return on Equity (Normalized)
7.94%1.99%27.48%
Return on Invested Capital (Normalized)
6.14%2.63%13.60%
Return on Assets
HUBG
KNX
CHRW

Integrated Freight & Logistics Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
United Parcel Service Inc Class B
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DHL Group ADR
DHLGY
MzlmvxdtQpcytr$50.9 Bil
ZTO Express (Cayman) Inc ADR
ZTO
CztxytvhcRlkjhrq$21.9 Bil
Expeditors International of Washington Inc
EXPD
SchfmbgrgBbxxg$17.7 Bil
JB Hunt Transport Services Inc
JBHT
XlpjcmbxMpzwcxf$17.1 Bil
C.H. Robinson Worldwide Inc
CHRW
XycbqgqzQhzsj$12.7 Bil
Landstar System Inc
LSTR
QchjzmdjzYqywm$6.5 Bil

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