Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: 1.41%
• Average Volume (3M): 624.95K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.16
• 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: 573,815
• 30 Day Avg. Volume: 624,952
• 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: 1.14
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 0.45
• Enterprise Value/Ebitda: 7.73
• 1Y Price Target: $39.82
• Price Target Upside: 12.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.84
• Revenue Forecast (FY): $3.68B

• Rating: 69 Neutral
• Price Target: $40.00 ▲(12.55% Upside)

Hub Group's overall stock score reflects a balance of strengths and challenges. The company's strong technical indicators and strategic acquisitions are positive, but financial performance concerns, particularly in cash flow and profitability, weigh on the score. Valuation metrics suggest moderate attractiveness, while earnings call insights provide a mixed outlook with potential for future growth.

Positive Factors

Strategic Partnerships

The partnership with Essendant enhances Hub Group's service offerings and operational efficiency, potentially driving long-term revenue growth and market competitiveness through improved delivery capabilities and cost reductions.

Acquisitions

These acquisitions expand Hub Group's scale and service capabilities, particularly in the Final Mile segment, supporting long-term growth and competitive positioning in the logistics industry.

Intermodal Growth

Strong performance in the Intermodal segment indicates robust demand and operational efficiency, contributing to sustained revenue growth and margin improvement over time.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining top-line growth, which could impact long-term profitability and market share if not addressed.

Logistics Segment Challenges

Significant revenue decline in the logistics segment highlights operational challenges and competitive pressures, potentially affecting future growth and profitability.

Brokerage Environment

The challenging brokerage environment, marked by declining volumes, indicates market difficulties that could hinder Hub Group's ability to capitalize on growth opportunities in this segment.

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 logistics and transportation services. The company operates on a fee-for-service model, where it charges customers for the transportation of goods and for providing logistics services. Key revenue streams include intermodal freight transportation, which involves the use of multiple modes of transport to deliver goods efficiently, and dedicated trucking services, where Hub Group provides exclusive capacity for specific customers. The company also earns revenue from its logistics solutions, which encompass supply chain management, warehousing, and distribution services. Significant partnerships with railroads and trucking companies enhance Hub Group's operational efficiency and service offerings, contributing to its earnings. Additionally, the company's focus on technology and data analytics improves service delivery and customer satisfaction, further 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	5.46B	3.37B	503.66M	889.50M	599.64M	425.44M
EBITDA	321.14M	339.57M	407.09M	629.19M	349.91M	229.12M
Net Income	104.97M	103.99M	167.53M	356.95M	171.47M	73.56M
Balance Sheet
Total Assets	2.90B	2.87B	2.94B	2.81B	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	1.21B	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: Negative
• Last Price: 35.54
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBG, the sentiment is Negative. The current price of 35.54 is below the 20-day moving average (MA) of 35.81, below the 50-day MA of 35.56, and below the 200-day MA of 35.72, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 51.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUBG.

Hub Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	75 Outperform	$63.13B	15.64	14.98%	2.12%	1.14%	4.99%
XPO	73 Outperform	$15.70B	48.07	19.26%	―	-0.30%	-11.02%
CHRW	71 Outperform	$18.05B	30.97	34.32%	1.66%	-7.08%	71.39%
LSTR	70 Outperform	$4.32B	32.15	14.41%	2.83%	-0.74%	-32.79%
HUBG	69 Neutral	$2.17B	20.45	6.31%	1.41%	-5.79%	-1.57%
JBHT	65 Neutral	$15.50B	28.18	15.13%	1.08%	-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’s Earnings Call: Mixed Results and Optimistic Outlook

Hub Group’s recent earnings call painted a mixed picture, highlighting both strong performance in certain segments and challenges in others. The company experienced significant growth in its Intermodal segment and benefited from strategic acquisitions, which contributed to improved margins and productivity. However, the logistics and brokerage segments faced difficulties, and there was an overall decrease in revenue, raising some concerns.

Hub Group Reports Q3 2025 Financial Results

Hub Group, Inc. is a publicly traded company specializing in transportation and logistics management solutions, leveraging industry-leading technology to enhance supply chain efficiency and visibility. In its third quarter of 2025, Hub Group reported a revenue of $934 million, marking a 5% decline from the previous year. The company achieved a GAAP diluted earnings per share of $0.47 and a non-GAAP adjusted EPS of $0.49. Despite softer demand in freight markets, the company saw improvements in intermodal profitability and logistics operating margins. Key financial highlights include an operating income of $39 million and a strong balance sheet with a net debt/EBITDA ratio of 0.4x. The acquisition of Marten Transport Intermodal assets and SITH, LLC was completed, enhancing their refrigerated intermodal business. The Intermodal and Transportation Solutions segment reported stable revenue, while the Logistics segment experienced a decline due to lower brokerage business volume and soft demand. Hub Group’s management remains optimistic about future growth, focusing on intermodal expansion and margin improvement through strategic partnerships and operational efficiencies.

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.

The most recent analyst rating on (HUBG) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Hub Group stock, see the HUBG Stock Forecast page.