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 23 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HUBG was profitable.
HUBG had a positive operating cash flow in the past year.
In the past 5 years HUBG has always been profitable.
HUBG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.63%, HUBG is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
With a decent Return On Equity value of 6.32%, HUBG is doing good in the industry, outperforming 63.16% of the companies in the same industry.
HUBG has a Return On Invested Capital (4.82%) which is in line with its industry peers.
HUBG had an Average Return On Invested Capital over the past 3 years of 9.91%. This is in line with the industry average of 11.36%.
The last Return On Invested Capital (4.82%) 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 | 3.63% | ||
| ROE | 6.32% | ||
| ROIC | 4.82% |
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
With a decent Profit Margin value of 2.64%, HUBG is doing good in the industry, outperforming 73.68% of the companies in the same industry.
HUBG's Profit Margin has declined in the last couple of years.
HUBG has a Operating Margin (3.52%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HUBG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.52% | ||
| PM (TTM) | 2.64% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HUBG is still creating some value.
Compared to 1 year ago, HUBG has less shares outstanding
The number of shares outstanding for HUBG has been reduced compared to 5 years ago.
HUBG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.89 indicates that HUBG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.89, HUBG is doing good in the industry, outperforming 78.95% 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.
With an excellent Debt to FCF ratio value of 1.85, HUBG belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that HUBG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.10, HUBG is doing good in the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 3.89 |
ROIC/WACC0.56
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.33 indicates that HUBG should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.33, HUBG is doing good in the industry, outperforming 68.42% of the companies in the same industry.
HUBG has a Quick Ratio of 1.33. This is a normal value and indicates that HUBG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HUBG (1.33) is better than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
HUBG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.68%.
The Earnings Per Share has been growing slightly by 2.42% on average over the past years.
The Revenue has decreased by -6.10% in the past year.
HUBG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.47% yearly.
EPS 1Y (TTM)-26.68%
EPS 3Y-8.88%
EPS 5Y2.42%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-6.1%
Revenue growth 3Y-2.31%
Revenue growth 5Y1.47%
Sales Q2Q%-1.17%
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 11.65% on average per year.
HUBG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y17.79%
EPS Next 2Y22.73%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue Next Year4.48%
Revenue Next 2Y5.32%
Revenue Next 3Y6.93%
Revenue Next 5Y6.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.58 indicates a rather expensive valuation of HUBG.
Compared to the rest of the industry, the Price/Earnings ratio of HUBG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, HUBG is valued a bit cheaper.
HUBG is valuated rather expensively with a Price/Forward Earnings ratio of 19.17.
HUBG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HUBG is cheaper than 73.68% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HUBG to the average of the S&P500 Index (22.68), we can say HUBG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 19.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBG is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUBG indicates a rather cheap valuation: HUBG is cheaper than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.27
PEG (5Y)9.34
EPS Next 2Y22.73%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, HUBG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.82, HUBG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, HUBG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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
HUBG pays out 29.08% of its income as dividend. This is a sustainable payout ratio.
DP29.08%
EPS Next 2Y22.73%
EPS Next 3Y11.73%
43.13
+0.15 (+0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners95.18%
Inst Owner Change2.86%
Ins Owners2.45%
Ins Owner Change6.61%
Market Cap2.64B
Analysts74.29
Price Target49.39 (14.51%)
Short Float %0.78%
Short Ratio0.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP29.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.44%
Min EPS beat(2)-2%
Max EPS beat(2)6.88%
EPS beat(4)2
Avg EPS beat(4)3.54%
Min EPS beat(4)-2.11%
Max EPS beat(4)11.39%
EPS beat(8)4
Avg EPS beat(8)-1.69%
EPS beat(12)8
Avg EPS beat(12)6.65%
EPS beat(16)12
Avg EPS beat(16)11.61%
Revenue beat(2)0
Avg Revenue beat(2)-6.76%
Min Revenue beat(2)-8.87%
Max Revenue beat(2)-4.65%
Revenue beat(4)0
Avg Revenue beat(4)-7.93%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)-4.65%
Revenue beat(8)0
Avg Revenue beat(8)-6.74%
Revenue beat(12)2
Avg Revenue beat(12)-5.07%
Revenue beat(16)3
Avg Revenue beat(16)-4%
PT rev (1m)0.58%
PT rev (3m)5.26%
EPS NQ rev (1m)-12.11%
EPS NQ rev (3m)-23.06%
EPS NY rev (1m)-8.31%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-6.28%
Revenue NQ rev (3m)-9.91%
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 19.17 | ||
| P/S | 0.67 | ||
| P/FCF | 18.42 | ||
| P/OCF | 13.6 | ||
| P/B | 1.61 | ||
| P/tB | 4.69 | ||
| EV/EBITDA | 8.45 |
EPS(TTM)1.91
EY4.43%
EPS(NY)2.25
Fwd EY5.22%
FCF(TTM)2.34
FCFY5.43%
OCF(TTM)3.17
OCFY7.35%
SpS64.36
BVpS26.83
TBVpS9.19
PEG (NY)1.27
PEG (5Y)9.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 6.32% | ||
| ROCE | 6.07% | ||
| ROIC | 4.82% | ||
| ROICexc | 5.03% | ||
| ROICexgc | 9.94% | ||
| OM | 3.52% | ||
| PM (TTM) | 2.64% | ||
| GM | N/A | ||
| FCFM | 3.64% |
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 Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 26.41% | ||
| Cap/Sales | 1.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.63% | ||
| Profit Quality | 138.06% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.89 |
F-Score6
WACC8.53%
ROIC/WACC0.56
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)-26.68%
EPS 3Y-8.88%
EPS 5Y2.42%
EPS Q2Q%4.35%
EPS Next Y17.79%
EPS Next 2Y22.73%
EPS Next 3Y11.73%
EPS Next 5Y11.65%
Revenue 1Y (TTM)-6.1%
Revenue growth 3Y-2.31%
Revenue growth 5Y1.47%
Sales Q2Q%-1.17%
Revenue Next Year4.48%
Revenue Next 2Y5.32%
Revenue Next 3Y6.93%
Revenue Next 5Y6.39%
EBIT growth 1Y-32.32%
EBIT growth 3Y-16.46%
EBIT growth 5Y-1.86%
EBIT Next Year124.73%
EBIT Next 3Y42.6%
EBIT Next 5Y29.65%
FCF growth 1Y-49.1%
FCF growth 3Y6.19%
FCF growth 5Y-2.1%
OCF growth 1Y-53.95%
OCF growth 3Y-8.38%
OCF growth 5Y-5.24%