Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.18B
• Dividend Yield: 1.4%
• Average Volume (3M): 677.64K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.14
• Revenue Growth: -5.37%
• EPS Growth: -11.26%
• Country: US
• Employees: 6,386
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.45
• Shares Outstanding: 60,644,676
• 10 Day Avg. Volume: 618,519
• 30 Day Avg. Volume: 677,636
• 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: 1.08
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $39.75
• Price Target Upside: 11.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $38.00 ▲(6.68% Upside)

Hub Group's overall stock score reflects a stable financial position with strong balance sheet metrics but challenges in profitability and growth. The earnings call provided some positive strategic insights, but revenue declines and uncertain demand trends pose risks. Technical and valuation metrics suggest a balanced outlook without strong momentum or undervaluation.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio suggests financial stability and less risk from leverage, providing Hub Group with flexibility to invest in growth opportunities.

Cost Reduction Success

Achieving and expanding cost reduction targets enhances profitability and operational efficiency, supporting long-term financial health.

Intermodal Volume Growth

Growth in intermodal volume, especially in high-potential markets like Mexico, indicates strong demand and positions Hub Group for future expansion.

Negative Factors

Revenue Decline

A decline in revenue signals potential challenges in market demand and competitive pressures, impacting long-term growth prospects.

Logistics Segment Challenges

Declining logistics revenue highlights operational challenges and competitive pressures, which could hinder growth and profitability.

Uncertain Demand Trends

Uncertain demand trends create unpredictability in revenue streams, complicating strategic planning and investment decisions.

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: Negative
• Last Price: 35.62
• 50DMA: Negative
• 100DMA: Positive
• 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 Negative. The current price of 35.62 is above the 20-day moving average (MA) of 35.06, below the 50-day MA of 35.80, and below the 200-day MA of 36.39, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 53.31 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	73 Outperform	$56.90B	14.09	14.98%	2.35%	1.14%	4.99%
LSTR	69 Neutral	$4.51B	27.30	17.47%	2.70%	-2.10%	-22.19%
XPO	66 Neutral	$14.77B	43.51	21.10%	―	-0.11%	-4.28%
JBHT	65 Neutral	$16.14B	28.86	15.13%	1.05%	-1.60%	4.87%
HUBG	64 Neutral	$2.18B	21.57	6.03%	1.40%	-5.37%	-11.26%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CHRW	58 Neutral	$14.89B	28.70	32.43%	1.97%	-2.55%	59.07%

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.

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.

Hub Group’s Earnings Call: Strategic Gains Amid Revenue Challenges

The recent earnings call for Hub Group presented a mixed sentiment, highlighting both strategic progress and operational improvements alongside challenges in revenue performance. The company successfully acquired Marten Transport’s fleet, achieved significant cost reductions, and demonstrated growth in the Final Mile division. However, revenue declines across segments, particularly in intermodal and logistics, were acknowledged due to challenging market conditions and subseasonal demand.

Hub Group Reports Stable Q2 2025 Financial Results

Hub Group, Inc., a leading transportation and logistics management company, offers comprehensive solutions to optimize supply chains and enhance service efficiency. In its second quarter of 2025, Hub Group reported a GAAP diluted earnings per share of $0.42 and a revenue of $905.6 million. The company also highlighted a strong balance sheet with a net debt/EBITDA ratio of 0.3x, indicating financial stability.