Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.52B
• Dividend Yield: 1.21%
• Average Volume (3M): 608.14K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.11
• Revenue Growth: -5.79%
• EPS Growth: -1.57%
• Country: US
• Employees: 6,386
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.49
• Shares Outstanding: 60,578,606
• 10 Day Avg. Volume: 580,180
• 30 Day Avg. Volume: 608,144
• PEG Ratio: -0.74
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 18.82
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 1.37
• Enterprise Value/Ebitda: 7.36
• 1Y Price Target: $40.42
• Price Target Upside: -2.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.84
• Revenue Forecast (FY): $3.68B

• Rating: 68 Neutral
• Price Target: $43.00 ▲(4.17% Upside)

Hub Group's overall stock score reflects a stable but challenging financial performance, with strong technical indicators suggesting bullish momentum. However, valuation concerns and mixed earnings call results highlight potential risks. The company's strategic acquisitions and operational efficiencies provide a positive outlook, but revenue growth challenges remain a concern.

Positive Factors

Intermodal Segment Growth

The Intermodal segment's growth, with increased revenue per load and volume, highlights Hub Group's strength in leveraging rail networks, supporting long-term revenue stability.

Successful Acquisitions

Strategic acquisitions enhance Hub Group's service capabilities and operational scale, positioning the company for sustained growth and competitive advantage.

Operational Efficiency Improvements

Operational efficiency gains through cost reductions and margin improvements bolster Hub Group's profitability and competitive positioning long-term.

Negative Factors

Logistics Segment Revenue Decline

The significant revenue decline in the logistics segment indicates challenges in maintaining volume and pricing power, impacting overall revenue growth.

Challenging Brokerage Environment

The brokerage segment's struggles with demand and volume declines suggest ongoing market challenges, potentially affecting future revenue and margins.

Revenue Decrease

A 5% revenue decrease reflects broader market challenges and highlights the need for strategic initiatives to drive growth and offset declines.

Hub Group Business Overview & Revenue Model

Company Description

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services. The company also provides dry van, expedited, less-than-truckload, refrigerated, and flatbed truck brokerage services. It offers a fleet of approximately 1,000 tractors and 4,600 trailers to its customers, as well as the driver staffing, management, and infrastructure. The company serves a range of industries, including retail, consumer products, and durable goods. As of December 31, 2021, it owned approximately 43,750 dry, 53-foot containers, as well as 450 refrigerated, 53-foot containers; and leased approximately 250 dry, 53-foot containers. The company was founded in 1971 and is headquartered in Oak Brook, Illinois.

How the Company Makes Money

Hub Group generates revenue primarily through its intermodal, logistics, and truckload services. The intermodal segment, which involves the transportation of goods using multiple modes of transport, is a significant revenue driver, as it leverages rail networks along with truck transportation to provide efficient and cost-effective solutions for customers. The logistics segment contributes to earnings by offering supply chain management services, including warehousing, distribution, and freight brokerage. Additionally, the truckload segment provides dedicated and spot market trucking services. Key partnerships with railroads and other transportation providers enhance Hub Group's service offerings and operational capabilities. The company's focus on technology and data analytics also plays a crucial role in optimizing supply chain solutions, improving customer experience, and driving revenue growth.

Hub Group Financial Statement Overview

Summary

Hub Group exhibits a mixed financial performance. The company maintains a strong gross profit margin and a stable balance sheet with moderate leverage. However, it faces challenges in revenue growth and profitability, with declining free cash flow growth indicating potential liquidity issues. Improvement in operational efficiency and cash flow management is needed.

Income Statement

Hub Group's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative TTM revenue growth rate of -1.39%. However, the gross profit margin is exceptionally high at 146.45% in the TTM period, indicating strong cost management or accounting adjustments. The net profit margin is relatively low at 2.82%, suggesting limited profitability. EBIT and EBITDA margins have decreased over the years, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.29 in the TTM period, indicating moderate leverage. The return on equity has decreased over time, currently at 6.29%, which is below industry averages, reflecting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals some concerns, with a negative free cash flow growth rate of -9.57% in the TTM period, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.30, suggesting that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.71, indicating that a significant portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.73B	3.95B	4.20B	5.34B	4.23B	3.50B
Gross Profit	1.82B	3.37B	503.66M	889.50M	599.64M	425.44M
EBITDA	337.50M	339.57M	407.09M	629.19M	349.91M	229.12M
Net Income	105.02M	103.99M	167.53M	356.95M	171.47M	73.56M
Balance Sheet
Total Assets	2.90B	2.87B	2.94B	2.90B	2.44B	2.11B
Cash, Cash Equivalents and Short-Term Investments	119.70M	98.25M	187.27M	286.64M	159.78M	124.51M
Total Debt	498.76M	508.51M	575.51M	451.74M	334.90M	330.47M
Total Liabilities	1.15B	1.18B	1.30B	1.30B	1.10B	947.47M
Stockholders Equity	1.70B	1.64B	1.63B	1.60B	1.34B	1.16B
Cash Flow
Free Cash Flow	113.42M	143.57M	282.09M	239.02M	119.88M	59.65M
Operating Cash Flow	160.24M	194.42M	422.16M	458.16M	252.84M	174.95M
Investing Cash Flow	-110.64M	-53.33M	-373.16M	-278.87M	-210.13M	-196.86M
Financing Cash Flow	-89.28M	-201.33M	-148.41M	-52.46M	-7.41M	-22.30M

Hub Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBG, the sentiment is Positive. The current price of 41.28 is above the 20-day moving average (MA) of 37.12, above the 50-day MA of 35.92, and above the 200-day MA of 35.29, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 74.95 is Negative, neither overbought nor oversold. The STOCH value of 85.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUBG.

Hub Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHRW	76 Outperform	$18.57B	31.87	34.32%	1.58%	-7.08%	71.39%
FDX	75 Outperform	$64.72B	16.03	14.98%	2.06%	1.14%	4.99%
XPO	71 Outperform	$16.78B	51.37	19.26%	―	-0.30%	-11.02%
HUBG	68 Neutral	$2.52B	23.76	6.31%	1.21%	-5.79%	-1.57%
LSTR	67 Neutral	$4.88B	36.28	14.41%	2.56%	-0.74%	-32.79%
JBHT	67 Neutral	$17.94B	32.61	15.13%	0.93%	-1.60%	4.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hub Group Corporate Events

Hub Group Mourns Passing of Director Lisa Dykstra

Hub Group, Inc. announced the passing of Lisa Dykstra, a director since 2022, on September 28, 2025. The company expressed gratitude for her contributions to the board’s audit, compensation, and nominating and governance committees, and extended sympathies to her family.