HUB GROUP INC-CL A (HUBG) Stock Fundamental Analysis
NASDAQ:HUBG - Nasdaq - US4433201062 - Common Stock - Currency: USD
HUBG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Air Freight & Logistics industry. HUBG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HUBG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HUBG had positive earnings in the past year.
In the past year HUBG had a positive cash flow from operations.
HUBG had positive earnings in each of the past 5 years.
In the past 5 years HUBG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.57%, HUBG is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Return On Equity of HUBG (5.97%) is better than 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.71%, HUBG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HUBG is below the industry average of 12.56%.
The last Return On Invested Capital (4.71%) for HUBG is well below the 3 year average (9.91%), which needs to be investigated, but indicates that HUBG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.97% | ||
| ROIC | 4.71% |
ROA(3y)7.34%
ROA(5y)6.51%
ROE(3y)12.96%
ROE(5y)11.61%
ROIC(3y)9.91%
ROIC(5y)9.15%
1.3 Margins
The Profit Margin of HUBG (2.65%) is better than 72.73% of its industry peers.
In the last couple of years the Profit Margin of HUBG has declined.
With a decent Operating Margin value of 3.57%, HUBG is doing good in the industry, outperforming 72.73% of the companies in the same industry.
HUBG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.57% | ||
| PM (TTM) | 2.65% | ||
| GM | N/A |
OM growth 3Y-14.49%
OM growth 5Y-3.28%
PM growth 3Y-13.36%
PM growth 5Y-2.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HUBG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HUBG has less shares outstanding than it did 1 year ago.
HUBG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HUBG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.80 indicates that HUBG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.80, HUBG is doing good in the industry, outperforming 77.27% of the companies in the same industry.
HUBG has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
HUBG's Debt to FCF ratio of 1.85 is amongst the best of the industry. HUBG outperforms 86.36% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that HUBG is not too dependend on debt financing.
HUBG's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. HUBG outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.57
WACC8.27%
2.3 Liquidity
HUBG has a Current Ratio of 1.42. This is a normal value and indicates that HUBG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.42, HUBG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
HUBG has a Quick Ratio of 1.42. This is a normal value and indicates that HUBG is financially healthy and should not expect problems in meeting its short term obligations.
HUBG has a Quick ratio of 1.42. This is comparable to the rest of the industry: HUBG outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
HUBG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.89%.
The Earnings Per Share has been growing slightly by 2.42% on average over the past years.
The Revenue has decreased by -5.37% in the past year.
Measured over the past years, HUBG shows a small growth in Revenue. The Revenue has been growing by 1.47% on average per year.
EPS 1Y (TTM)1.89%
EPS 3Y-8.88%
EPS 5Y2.42%
EPS Q2Q%-4.26%
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y-2.31%
Revenue growth 5Y1.47%
Sales Q2Q%-8.2%
3.2 Future
Based on estimates for the next years, HUBG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.54% on average per year.
Based on estimates for the next years, HUBG will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y1.96%
EPS Next 2Y14.06%
EPS Next 3Y15.18%
EPS Next 5Y12.54%
Revenue Next Year-5.56%
Revenue Next 2Y0.28%
Revenue Next 3Y2.17%
Revenue Next 5Y4.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.43, the valuation of HUBG can be described as rather expensive.
77.27% of the companies in the same industry are more expensive than HUBG, based on the Price/Earnings ratio.
HUBG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.73.
The Price/Forward Earnings ratio is 14.78, which indicates a correct valuation of HUBG.
Based on the Price/Forward Earnings ratio, HUBG is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HUBG to the average of the S&P500 Index (34.61), we can say HUBG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
HUBG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HUBG is cheaper than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HUBG is valued cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HUBG does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as HUBG's earnings are expected to grow with 15.18% in the coming years.
PEG (NY)9.93
PEG (5Y)8.04
EPS Next 2Y14.06%
EPS Next 3Y15.18%
5. Dividend
5.1 Amount
HUBG has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, HUBG pays a bit more dividend than its industry peers.
HUBG's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
HUBG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
30.01% of the earnings are spent on dividend by HUBG. This is a low number and sustainable payout ratio.
DP30.01%
EPS Next 2Y14.06%
EPS Next 3Y15.18%
36.72
+0.95 (+2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners105.41%
Inst Owner Change0.35%
Ins Owners2.74%
Ins Owner Change-0.07%
Market Cap2.25B
Analysts73.91
Price Target40.69 (10.81%)
Short Float %1.94%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP30.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.49%
Min EPS beat(2)0.1%
Max EPS beat(2)0.88%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-2%
Max EPS beat(4)6.88%
EPS beat(8)4
Avg EPS beat(8)-1.94%
EPS beat(12)8
Avg EPS beat(12)-0.59%
EPS beat(16)12
Avg EPS beat(16)10.31%
Revenue beat(2)0
Avg Revenue beat(2)-4.97%
Min Revenue beat(2)-7.13%
Max Revenue beat(2)-2.82%
Revenue beat(4)0
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-8.87%
Max Revenue beat(4)-2.82%
Revenue beat(8)0
Avg Revenue beat(8)-5.83%
Revenue beat(12)0
Avg Revenue beat(12)-6.73%
Revenue beat(16)3
Avg Revenue beat(16)-4.32%
PT rev (1m)1.68%
PT rev (3m)-5.89%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-17.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.47%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-8.83%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-7.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 14.78 | ||
| P/S | 0.59 | ||
| P/FCF | 17.93 | ||
| P/OCF | 12.81 | ||
| P/B | 1.34 | ||
| P/tB | 3.68 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)1.89
EY5.15%
EPS(NY)2.49
Fwd EY6.77%
FCF(TTM)2.05
FCFY5.58%
OCF(TTM)2.87
OCFY7.8%
SpS61.75
BVpS27.35
TBVpS9.99
PEG (NY)9.93
PEG (5Y)8.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.97% | ||
| ROCE | 5.94% | ||
| ROIC | 4.71% | ||
| ROICexc | 5.01% | ||
| ROICexgc | 9.97% | ||
| OM | 3.57% | ||
| PM (TTM) | 2.65% | ||
| GM | N/A | ||
| FCFM | 3.32% |
ROA(3y)7.34%
ROA(5y)6.51%
ROE(3y)12.96%
ROE(5y)11.61%
ROIC(3y)9.91%
ROIC(5y)9.15%
ROICexc(3y)11.12%
ROICexc(5y)10.19%
ROICexgc(3y)20.96%
ROICexgc(5y)19.32%
ROCE(3y)12.5%
ROCE(5y)11.55%
ROICexcg growth 3Y-24.55%
ROICexcg growth 5Y-10.23%
ROICexc growth 3Y-24.92%
ROICexc growth 5Y-11.37%
OM growth 3Y-14.49%
OM growth 5Y-3.28%
PM growth 3Y-13.36%
PM growth 5Y-2.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 26.65% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.34% | ||
| Profit Quality | 125.39% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 3.8 |
F-Score6
WACC8.27%
ROIC/WACC0.57
Cap/Depr(3y)81.63%
Cap/Depr(5y)87.98%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.03%
Profit Quality(3y)124.47%
Profit Quality(5y)104.88%
High Growth Momentum
Growth
EPS 1Y (TTM)1.89%
EPS 3Y-8.88%
EPS 5Y2.42%
EPS Q2Q%-4.26%
EPS Next Y1.96%
EPS Next 2Y14.06%
EPS Next 3Y15.18%
EPS Next 5Y12.54%
Revenue 1Y (TTM)-5.37%
Revenue growth 3Y-2.31%
Revenue growth 5Y1.47%
Sales Q2Q%-8.2%
Revenue Next Year-5.56%
Revenue Next 2Y0.28%
Revenue Next 3Y2.17%
Revenue Next 5Y4.26%
EBIT growth 1Y-7.34%
EBIT growth 3Y-16.46%
EBIT growth 5Y-1.86%
EBIT Next Year100.81%
EBIT Next 3Y34.89%
EBIT Next 5Y23.61%
FCF growth 1Y-55.2%
FCF growth 3Y6.19%
FCF growth 5Y-2.1%
OCF growth 1Y-63.35%
OCF growth 3Y-8.38%
OCF growth 5Y-5.24%