Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.30B
• Dividend Yield: 1.39%
• Average Volume (3M): 574.29K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.09
• Revenue Growth: -5.37%
• EPS Growth: -11.26%
• Country: US
• Employees: 6,386
• Sector: Industrials
• Sector Strength: 70
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.45
• Shares Outstanding: 60,644,676
• 10 Day Avg. Volume: 573,124
• 30 Day Avg. Volume: 574,286
• 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: 1.03
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $41.08
• Price Target Upside: 14.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 70 Outperform
• Price Target: $41.00 ▲(13.92% Upside)

Hub Group's overall stock score reflects a stable financial position with strong balance sheet metrics and positive technical momentum. However, challenges in profitability, growth prospects, and valuation weigh on the score. The recent earnings call and corporate events provide some optimism with strategic initiatives and enhanced financial flexibility, but revenue declines and uncertain demand trends remain concerns.

Positive Factors

Financial Flexibility

The new credit agreement enhances Hub Group's financial flexibility, allowing for better capital management and strategic investments, which can strengthen its market position over the long term.

Intermodal Volume Growth

Growth in intermodal volume, especially in high-demand areas like Mexico and refrigerated business, indicates strong market demand and operational efficiency, supporting long-term revenue stability.

Cost Reduction Initiatives

Successful cost reduction initiatives enhance profitability by lowering operational expenses, which can improve margins and provide a competitive edge over time.

Negative Factors

Revenue Decline

The decline in revenue reflects challenges in sustaining top-line growth, which could impact long-term financial health if not addressed through strategic initiatives.

Logistics Segment Challenges

Significant revenue decline in the Logistics segment suggests operational inefficiencies and market challenges, which could hinder growth and profitability if not resolved.

Uncertain Demand Trends

Uncertainty in demand trends poses risks to revenue stability and strategic planning, potentially affecting the company's ability to forecast and meet market needs effectively.

Hub Group Business Overview & Revenue Model

Company Description

Hub Group, Inc. (HUBG) is a leading logistics and transportation company based in the United States, specializing in intermodal and truckload transportation services. The company operates across various sectors, including freight transportation, logistics management, and supply chain solutions. Hub Group provides a comprehensive suite of services, including intermodal, dedicated, and logistics services, catering to a diverse range of industries, helping businesses optimize their transportation and logistics needs.

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 demonstrates a stable financial position with strong balance sheet metrics, though profitability and growth prospects face challenges. The income statement reflects pressure on revenue and margins, while the cash flow statement suggests good liquidity but highlights potential cash flow management areas for improvement. The company is well-positioned with low leverage, but needs to focus on enhancing profitability and growth to improve its financial performance.

Income Statement

The gross profit margin for the TTM (Trailing-Twelve-Months) is strong at 64.1%, though it has declined from the previous year, indicating pressure on cost management. The TTM net profit margin is 2.6%, showing a positive bottom line, but below industry averages. Revenue growth has been negative over recent years, with a significant decrease of 28.4% from 2022 to 2023, suggesting challenges in sustaining top-line growth. EBIT and EBITDA margins are modest at 3.6% and 8.1% respectively, reflecting operational profitability but also highlighting areas for efficiency improvement.

Balance Sheet

The company's debt-to-equity ratio is 0.28, which is relatively low and indicates a strong balance sheet with less leverage risk. The return on equity (ROE) for the TTM is 5.97%, indicating efficient use of equity but room for improvement. The equity ratio is solid at 59.8%, suggesting a healthy balance between equity and total assets, providing financial stability.

Cash Flow

Free cash flow has shown volatility, with a decrease in the TTM but overall positive free cash flow, providing liquidity for the company. The operating cash flow to net income ratio is 1.75, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is at 1.25, which is positive but reflects a decrease compared to previous years, suggesting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.78B	3.95B	4.20B	5.34B	4.23B	3.50B
Gross Profit	4.74B	3.37B	503.66M	889.50M	599.64M	425.44M
EBITDA	314.50M	339.57M	391.86M	610.14M	349.91M	230.50M
Net Income	100.02M	103.99M	167.53M	356.95M	171.47M	73.56M
Balance Sheet
Total Assets	2.80B	2.87B	2.94B	2.81B	2.44B	2.11B
Cash, Cash Equivalents and Short-Term Investments	137.05M	98.25M	187.27M	286.64M	159.78M	124.51M
Total Debt	462.62M	508.51M	575.51M	451.74M	322.28M	318.58M
Total Liabilities	1.07B	1.18B	1.30B	1.21B	1.10B	947.47M
Stockholders Equity	1.67B	1.64B	1.63B	1.60B	1.34B	1.16B
Cash Flow
Free Cash Flow	125.42M	143.57M	282.09M	239.02M	119.88M	59.65M
Operating Cash Flow	175.49M	194.42M	422.16M	458.16M	252.84M	174.95M
Investing Cash Flow	-57.95M	-53.33M	-373.16M	-278.87M	-210.13M	-196.86M
Financing Cash Flow	-174.10M	-201.33M	-148.41M	-52.46M	-7.41M	-22.30M

Hub Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.99
• 50DMA: Positive
• 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 Neutral. The current price of 35.99 is below the 20-day moving average (MA) of 36.50, above the 50-day MA of 35.60, and below the 200-day MA of 38.20, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUBG.

Hub Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	73 Outperform	$53.99B	13.60	14.68%	2.47%	0.27%	-2.64%
HUBG	70 Outperform	$2.30B	22.72	6.03%	1.39%	-5.37%	-11.26%
XPO	69 Neutral	$15.83B	45.04	21.10%	―	-0.11%	-4.28%
CHRW	69 Neutral	$15.47B	29.83	32.43%	1.87%	-2.55%	59.07%
LSTR	67 Neutral	$4.59B	27.21	17.47%	2.74%	-2.10%	-22.19%
JBHT	64 Neutral	$13.69B	25.71	14.33%	1.27%	-2.24%	-5.43%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%

Hub Group Corporate Events

Hub Group Enters New Credit Agreement with BMO

On June 20, 2025, Hub Group, Inc. entered into a new Credit Agreement with Bank of Montreal and several financial institutions, replacing the 2022 Credit Agreement. The company successfully terminated the previous agreement without incurring any early termination penalties and repaid all outstanding borrowings, which may enhance its financial flexibility and strengthen its market position.