Heartland Express (HTLD) AI Stock Analysis

• Market Cap: $663.58M
• Dividend Yield: 0.95%
• Average Volume (3M): 518.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -13.25%
• EPS Growth: -301.55%
• Country: US
• Employees: 5,220
• Sector: Industrials
• Sector Strength: 69
• Industry: Trucking
• EPS (TTM): -0.38
• Shares Outstanding: 78,529,640
• 10 Day Avg. Volume: 561,543
• 30 Day Avg. Volume: 518,694
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.70
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 4.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.33
• Price Target Upside: 22.25% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

Heartland Express has operational and profitability challenges, with declining revenues and negative net income affecting financial performance. The stock's technical indicators are neutral, reflecting a lack of strong momentum, while valuation metrics are weak with a negative P/E ratio. While the recent corporate event is a positive sign, it is not sufficient to offset the broader financial and valuation concerns.

Positive Factors

Market Outlook

Signs of life in the TL market and supportive commentary from peers suggest 4Q may mark the inflection for HTLD's earnings trajectory.

Operational Efficiency

Legacy Heartland Express and Millis Transfer delivered a 92.3% OR, implying strong relative performance in the industry.

Profitability

HTLD's EBIT re-entered profitable territory after several quarters of being unprofitable.

Negative Factors

Earnings Performance

EPS remains negative due to elevated interest expense from the financing of the CFI and Smith Transport acquisitions.

Market Conditions

Sustained lower freight demand and pricing continued to pressure results.

Stock Performance

The stock has underperformed its TL peers this year and, while it began to bridge the gap through the summer, it has largely given up those gains and the underperformance gap is back at its peak.

Heartland Express Business Overview & Revenue Model

Company Description

Heartland Express, Inc., together with its subsidiaries, operates as a short-to-medium haul truckload carrier in the United States and Canada. It primarily provides nationwide asset-based dry van truckload service for shippers from Washington to Florida and New England to California; and temperature-controlled truckload services. The company offers its services under the Heartland Express and Millis Transfer brand names. It primarily serves retailers and manufacturers in consumer goods, appliances, food products, and automotive industries. The company was founded in 1978 and is headquartered in North Liberty, Iowa.

How the Company Makes Money

Heartland Express makes money through the provision of truckload transportation services, earning revenue primarily from the freight fees charged to its customers. The company's key revenue streams include dedicated services, regional and national routes, and specialized logistics solutions. By maintaining a robust fleet and focusing on efficient operations, Heartland Express is able to optimize route planning and fleet utilization, which enhances profitability. Additionally, the company's strategic partnerships with major shippers, combined with a focus on customer service, contribute significantly to its earnings. Heartland Express also leverages technology and data analytics to improve operational efficiency and drive cost savings, further supporting its revenue model.

Heartland Express Financial Statement Overview

Summary

Heartland Express faces operational and profitability challenges, with declining revenues and negative net income impacting financial performance. The balance sheet remains stable, with reasonable leverage, but cash flow management needs improvement to ensure sustainable operations.

Income Statement

Heartland Express has experienced inconsistent revenue growth, with a significant decline in revenue from 2023 to 2024. The company reported a negative EBIT and net income in 2024, indicating operational challenges. The gross profit margin remained positive, but the net profit margin turned negative, reflecting profitability issues.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, suggesting a manageable level of leverage. Stockholders' equity has remained relatively stable, but the decline in total assets and increase in net debt in 2024 are concerning. Overall, the equity ratio has been strong, indicating a solid financial position.

Cash Flow

Heartland Express has faced challenges in generating free cash flow, with fluctuations over the years. The operating cash flow remains positive, but the negative free cash flow in some years highlights the need for improved cash management. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion from earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.05B	1.21B	968.00M	607.28M	645.26M
	Gross Profit
442.53M	145.28M	401.93M	114.64M	132.50M
	EBIT
-20.24M	42.38M	188.36M	-73.70M	-30.95M
	EBITDA
162.43M	243.08M	224.50M	210.13M	204.20M
	Net Income Common Stockholders
-29.72M	14.78M	133.58M	79.28M	70.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.81M	28.12M	49.46M	157.74M	113.85M
	Total Assets
1.33B	1.51B	1.67B	928.54M	951.18M
	Total Debt
208.61M	317.44M	433.96M	0.00	0.00
	Net Debt
195.80M	289.32M	384.50M	-157.74M	-113.85M
	Total Liabilities
511.59M	644.39M	814.01M	201.44M	226.84M
	Stockholders Equity
926.75M	865.26M	855.48M	727.10M	724.33M
Cash Flow		Free Cash Flow
34.81M	-43.33M	34.15M	-9.22M	-25.49M
	Operating Cash Flow
144.35M	165.27M	194.71M	123.42M	178.85M
	Investing Cash Flow
-46.54M	-67.87M	-663.26M	-2.65M	-111.05M
	Financing Cash Flow
-112.71M	-120.69M	359.26M	-78.14M	-32.74M

Heartland Express Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTLD, the sentiment is Negative. The current price of 8.45 is below the 20-day moving average (MA) of 9.06, below the 50-day MA of 9.97, and below the 200-day MA of 11.39, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 38.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTLD.

Heartland Express Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCB	63 Neutral	$1.44B	8.56	13.56%	0.77%	-5.61%	40.21%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
CVLG	59 Neutral	$508.81M	14.78	8.39%	1.23%	2.53%	-35.42%
MRTN	56 Neutral	$1.09B	40.47	3.53%	1.80%	-14.83%	-61.80%
WERN	54 Neutral	$1.76B	52.13	2.29%	1.97%	-7.71%	-69.05%
ULH	54 Neutral	$684.51M	5.28	22.03%	1.61%	11.06%	39.68%
HTLD	52 Neutral	$663.58M	―	-3.52%	0.95%	-13.25%	-301.55%

Heartland Express Corporate Events

Heartland Express Announces Executive Equity Grants

Heartland Express announced equity grants for two of its named executive officers under the 2021 Restricted Stock Award Plan. Christopher A. Strain and Kent D. Rigdon were each granted 1,000 shares, with a vesting schedule that includes immediate and future vesting dates, potentially impacting executive compensation and retention strategies.