Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: 1.4%
• Average Volume (3M): 466.15K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.06
• Revenue Growth: -4.63%
• EPS Growth: -18.94%
• Country: US
• Employees: 6,386
• Sector: Industrials
• Sector Strength: 85
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 60,669,537
• 10 Day Avg. Volume: 624,522
• 30 Day Avg. Volume: 466,155
• PEG Ratio: 0.07
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.04
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $40.00
• Price Target Upside: 13.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: $38.00 ▲(7.50%Upside)

Hub Group's overall stock score is bolstered by solid financial stability and positive technical momentum. Challenges include high valuation metrics and recent revenue declines, though operational improvements and strategic initiatives provide a potential upside. The new credit agreement further supports future growth prospects.

Positive Factors

Market Positioning

Hub Group is well positioned for a recovery in over-the-road conversions to intermodal given solid rail service and price-effective lanes.

Operating Margins

The company delivered a 40-basis point improvement in operating margins in the first quarter, showcasing enhanced operational efficiency.

Volume Growth

Hub Group had double-digit intermodal volume growth in the Local East and Mexico, leading to 8% intermodal volume growth.

Negative Factors

Import Reductions

Reduced west coast imports are expected to lead to lower intermodal volumes in the back half of the second quarter.

Pricing Challenges

Shippers are pushing back more on intermodal rate increases than on TL rates, indicating pricing challenges.

Revenue Decline

Intermodal revenue per load was down 12% due to mix, price, and fuel, contributing to a 12% decline.

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 and logistics services. The intermodal segment is a major revenue stream, involving the transportation of freight via rail and truck, offering clients an efficient and cost-effective solution for long-distance shipping. In addition to intermodal services, the company earns income from its truck brokerage operations, where it acts as an intermediary to match shippers with carriers. Hub Group also provides comprehensive logistics management services, including transportation management, supply chain optimization, and technology solutions. Key partnerships with railroads and a dedicated network of carriers enhance its service offerings, contributing significantly to its earnings. The company's ability to adapt to market demands and provide integrated logistics solutions supports its financial performance.

Hub Group Financial Statement Overview

Summary

Hub Group demonstrates a solid financial foundation with strengths in balance sheet stability and cash flow generation. However, profitability metrics reveal potential areas for improvement, and recent revenue declines suggest challenges in sustaining growth. The company maintains a conservative leverage position and strong equity support, providing a buffer against potential fluctuations.

Income Statement

The company exhibits moderate profitability with a gross profit margin of 45.1% and a net profit margin of 2.7% for TTM (Trailing-Twelve-Months). However, revenue has decreased by 1.2% compared to the previous annual period, indicating a slight decline. EBIT and EBITDA margins are at 3.6% and 8.1% respectively, which are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.29, indicating low leverage. The return on equity stands at 6.3%, reflecting moderate returns to shareholders. The equity ratio is 58.4%, suggesting a strong equity base relative to assets, which provides financial stability.

Cash Flow

The company has a solid cash flow profile with an operating cash flow to net income ratio of 1.77, indicating strong cash generation relative to reported earnings. However, the free cash flow decreased by 8.5% compared to the previous annual period, which could impact future investments. The free cash flow to net income ratio of 1.27 suggests good cash flow coverage of net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.86B	3.95B	4.20B	5.34B	4.23B	3.50B
Gross Profit	1.74B	3.37B	503.66M	889.50M	599.64M	425.44M
EBITDA	314.08M	339.57M	391.86M	610.14M	349.91M	230.50M
Net Income	103.79M	103.99M	167.53M	356.95M	171.47M	73.56M
Balance Sheet
Total Assets	2.82B	2.87B	2.94B	2.81B	2.44B	2.11B
Cash, Cash Equivalents and Short-Term Investments	112.67M	98.25M	187.27M	286.64M	159.78M	124.51M
Total Debt	485.45M	508.51M	575.51M	451.74M	322.28M	318.58M
Total Liabilities	1.17B	1.18B	1.30B	1.21B	1.10B	947.47M
Stockholders Equity	1.65B	1.64B	1.63B	1.60B	1.34B	1.16B
Cash Flow
Free Cash Flow	131.43M	143.57M	282.09M	239.02M	119.88M	59.65M
Operating Cash Flow	183.94M	194.42M	422.16M	458.16M	252.84M	174.95M
Investing Cash Flow	-54.81M	-53.33M	-373.16M	-278.87M	-210.13M	-196.86M
Financing Cash Flow	-183.29M	-201.33M	-148.41M	-52.46M	-7.41M	-22.30M

Hub Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 35.35 is above the 20-day moving average (MA) of 33.87, above the 50-day MA of 33.66, and below the 200-day MA of 40.50, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 57.93 is Neutral, neither overbought nor oversold. The STOCH value of 65.58 is Neutral, 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
GXO	74 Outperform	$5.71B	80.57	2.61%	―	23.40%	-55.55%
CHRW	70 Neutral	$11.48B	23.11	32.11%	2.53%	-0.22%	65.52%
HUBG	69 Neutral	$2.13B	20.38	6.35%	1.40%	-4.63%	-18.94%
JBHT	69 Neutral	$14.84B	27.16	13.97%	1.15%	-3.82%	-12.80%
LSTR	66 Neutral	$4.98B	28.27	18.34%	1.10%	-4.72%	-22.46%
Sector *	65 Neutral	$10.75B	15.69	5.29%	1.89%	3.09%	-27.41%
FWRD	51 Neutral	$815.65M	―	-147.96%	0.86%	50.11%	-682.50%

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.

The most recent analyst rating on (HUBG) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Hub Group stock, see the HUBG Stock Forecast page.

Hub Group Holds Annual Meeting, Elects Directors

On May 13, 2025, Hub Group, Inc. held its Annual Meeting at its headquarters in Oak Brook, Illinois, where stockholders voted on key proposals. The election of directors saw all ten nominees elected, while the compensation of executive officers was approved on an advisory basis. Additionally, the appointment of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, was ratified, indicating continued confidence in the company’s governance and financial oversight.

The most recent analyst rating on (HUBG) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Hub Group stock, see the HUBG Stock Forecast page.