HUB GROUP INC-CL A (HUBG) Stock Fundamental Analysis
NASDAQ:HUBG - Nasdaq - US4433201062 - Common Stock - Currency: USD
Overall HUBG gets a fundamental rating of 5 out of 10. We evaluated HUBG 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 correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 3.68%, HUBG is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.30%, HUBG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Return On Invested Capital of HUBG (4.89%) is better than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HUBG is below the industry average of 12.50%.
The 3 year average ROIC (9.91%) for HUBG is well above the current ROIC(4.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 6.3% | ||
| ROIC | 4.89% |
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
Looking at the Profit Margin, with a value of 2.69%, HUBG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of HUBG has declined.
The Operating Margin of HUBG (3.62%) is better than 72.73% of its industry peers.
HUBG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.62% | ||
| PM (TTM) | 2.69% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HUBG is creating some value.
Compared to 1 year ago, HUBG has less shares outstanding
Compared to 5 years ago, HUBG has less shares outstanding
HUBG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.73 indicates that HUBG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.73, HUBG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of HUBG is 1.92, which is an excellent value as it means it would take HUBG, only 1.92 years of fcf income to pay off all of its debts.
HUBG has a Debt to FCF ratio of 1.92. This is amongst the best in the industry. HUBG outperforms 86.36% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that HUBG is not too dependend on debt financing.
The Debt to Equity ratio of HUBG (0.09) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.73 |
ROIC/WACC0.58
WACC8.38%
2.3 Liquidity
HUBG has a Current Ratio of 1.36. This is a normal value and indicates that HUBG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, HUBG is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that HUBG should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.36, HUBG perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
HUBG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.26%.
Measured over the past 5 years, HUBG shows a small growth in Earnings Per Share. The EPS has been growing by 2.42% on average per year.
Looking at the last year, HUBG shows a decrease in Revenue. The Revenue has decreased by -4.63% in the last 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)-9.26%
EPS 3Y-8.88%
EPS 5Y2.42%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.63%
Revenue growth 3Y-2.31%
Revenue growth 5Y1.47%
Sales Q2Q%-8.43%
3.2 Future
HUBG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.54% yearly.
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-5.44%
Revenue Next 2Y0.47%
Revenue Next 3Y2.43%
Revenue Next 5Y4.26%
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.
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
The Price/Earnings ratio is 17.84, which indicates a rather expensive current valuation of HUBG.
Compared to the rest of the industry, the Price/Earnings ratio of HUBG indicates a somewhat cheap valuation: HUBG is cheaper than 72.73% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HUBG to the average of the S&P500 Index (27.19), we can say HUBG is valued slightly cheaper.
HUBG is valuated correctly with a Price/Forward Earnings ratio of 13.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUBG indicates a rather cheap valuation: HUBG is cheaper than 81.82% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.33. HUBG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 13.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUBG is valued a bit cheaper than 77.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HUBG is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.88 | ||
| EV/EBITDA | 6.93 |
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.
HUBG's earnings are expected to grow with 15.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.12
PEG (5Y)7.38
EPS Next 2Y14.06%
EPS Next 3Y15.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, HUBG has a reasonable but not impressive dividend return.
HUBG's Dividend Yield is a higher than the industry average which is at 3.82.
Compared to an average S&P500 Dividend Yield of 2.35, HUBG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
29.02% of the earnings are spent on dividend by HUBG. This is a low number and sustainable payout ratio.
DP29.02%
EPS Next 2Y14.06%
EPS Next 3Y15.18%
34.08
-0.94 (-2.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryAir Freight & Logistics
Earnings (Last)
Earnings (Next)
Inst Owners105.09%
Inst Owner Change0%
Ins Owners2.74%
Ins Owner Change-0.07%
Market Cap2.09B
Analysts73.04
Price Target40.02 (17.43%)
Short Float %2.23%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP29.02%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.56%
Min EPS beat(2)-2%
Max EPS beat(2)0.88%
EPS beat(4)2
Avg EPS beat(4)0.91%
Min EPS beat(4)-2.11%
Max EPS beat(4)6.88%
EPS beat(8)4
Avg EPS beat(8)-1.63%
EPS beat(12)8
Avg EPS beat(12)0.8%
EPS beat(16)12
Avg EPS beat(16)10.92%
Revenue beat(2)0
Avg Revenue beat(2)-5.89%
Min Revenue beat(2)-7.13%
Max Revenue beat(2)-4.65%
Revenue beat(4)0
Avg Revenue beat(4)-8.05%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)-4.65%
Revenue beat(8)0
Avg Revenue beat(8)-6.64%
Revenue beat(12)1
Avg Revenue beat(12)-6.27%
Revenue beat(16)3
Avg Revenue beat(16)-4.22%
PT rev (1m)-0.2%
PT rev (3m)-17.66%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-12.55%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-12.78%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-9.86%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-7.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.84 | ||
| Fwd PE | 13.71 | ||
| P/S | 0.54 | ||
| P/FCF | 15.88 | ||
| P/OCF | 11.35 | ||
| P/B | 1.27 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)1.91
EY5.6%
EPS(NY)2.49
Fwd EY7.29%
FCF(TTM)2.15
FCFY6.3%
OCF(TTM)3
OCFY8.81%
SpS63.07
BVpS26.92
TBVpS9.43
PEG (NY)9.12
PEG (5Y)7.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 6.3% | ||
| ROCE | 6.16% | ||
| ROIC | 4.89% | ||
| ROICexc | 5.14% | ||
| ROICexgc | 10.23% | ||
| OM | 3.62% | ||
| PM (TTM) | 2.69% | ||
| GM | N/A | ||
| FCFM | 3.4% |
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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 27.64% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 10.14 | ||
| Cash Conversion | 55.8% | ||
| Profit Quality | 126.63% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 3.73 |
F-Score6
WACC8.38%
ROIC/WACC0.58
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)-9.26%
EPS 3Y-8.88%
EPS 5Y2.42%
EPS Q2Q%0%
EPS Next Y1.96%
EPS Next 2Y14.06%
EPS Next 3Y15.18%
EPS Next 5Y12.54%
Revenue 1Y (TTM)-4.63%
Revenue growth 3Y-2.31%
Revenue growth 5Y1.47%
Sales Q2Q%-8.43%
Revenue Next Year-5.44%
Revenue Next 2Y0.47%
Revenue Next 3Y2.43%
Revenue Next 5Y4.26%
EBIT growth 1Y-16.78%
EBIT growth 3Y-16.46%
EBIT growth 5Y-1.86%
EBIT Next Year102.14%
EBIT Next 3Y35.48%
EBIT Next 5Y23.61%
FCF growth 1Y-47.9%
FCF growth 3Y6.19%
FCF growth 5Y-2.1%
OCF growth 1Y-60.64%
OCF growth 3Y-8.38%
OCF growth 5Y-5.24%