Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: 1.14%
• Average Volume (3M): 753.49K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.07
• 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: 1,110,344
• 30 Day Avg. Volume: 753,493
• 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: 1.18
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 10.20
• 1Y Price Target: $49.55
• Price Target Upside: -0.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $52.00 ▲(4.67% 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 Strength

Sustained intermodal volume and yield improvements show durable demand and pricing power in Hub's largest segment. Strong Mexico and refrigerated growth diversify routes and customer mix, supporting higher utilization of rail partnerships and sustaining margins over multiple quarters.

Strategic Acquisitions

Targeted acquisitions expand network scale and final-mile capabilities, creating operational density and service breadth. Combined with explicit $50M cost‑savings plans, these moves improve long‑term service competitiveness and provide structural margin and efficiency upside.

Balance Sheet Stability

A solid capital structure and moderate leverage (net debt at low multiples) sustain investment capacity for technology, fleet, and M&A. Financial flexibility reduces refinancing risk and underpins multi‑period strategic initiatives and capital allocation choices.

Negative Factors

Revenue Decline

Persistent top‑line contraction undermines scale economics and limits the firm's ability to spread fixed costs, pressuring long‑run margins and return metrics. Without a sustained revenue turnaround, profitability and investment funding will remain constrained.

Logistics/Brokerage Weakness

A sustained decline in brokerage volumes and logistics revenue indicates structural softness or competitive pressure in higher‑margin services. This erosion reduces revenue diversification, raises carriage costs per unit, and can impair long‑term margin recovery even if intermodal strengthens.

Cash Generation Pressure

Declining free cash flow growth and weak operating cash conversion limit internal funding for capex, fleet renewals, and acquisitions. Over time this constrains strategic flexibility, increases reliance on external financing, and can reduce resilience to industry downturns.

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's financial performance is stable but faces challenges. The income statement shows improved cost management but declining revenue growth. The balance sheet is solid with moderate leverage, yet profitability metrics need improvement. Cash flow analysis indicates potential cash generation issues.

Income Statement

Hub Group's income statement shows a mixed performance. The gross profit margin has improved significantly in the TTM period, indicating better cost management. However, the revenue growth rate is negative, reflecting a decline in sales. The net profit margin is stable but low, suggesting limited profitability. EBIT and EBITDA margins are consistent, showing operational efficiency but also highlighting the need for revenue growth.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, indicating moderate leverage. Return on equity has decreased over time, suggesting reduced profitability for shareholders. The equity ratio is healthy, showing a strong capital structure. Overall, the balance sheet indicates stability but highlights the need for improved returns.

Cash Flow

Cash flow analysis reveals challenges with declining free cash flow growth, indicating potential cash generation issues. The operating cash flow to net income ratio is below optimal levels, suggesting inefficiencies in converting income to cash. However, the free cash flow to net income ratio is relatively strong, indicating good cash retention from profits.

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: 49.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 49.68 is above the 20-day moving average (MA) of 47.00, above the 50-day MA of 43.53, and above the 200-day MA of 36.85, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 70.68 is Negative, neither overbought nor oversold. The STOCH value of 77.93 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
FDX	76 Outperform	$75.77B	17.78	15.87%	1.94%	3.09%	14.94%
XPO	70 Outperform	$17.39B	58.60	19.26%	―	-0.30%	-11.02%
JBHT	69 Neutral	$19.30B	33.10	15.79%	0.89%	-1.60%	4.87%
HUBG	68 Neutral	$2.91B	27.38	6.31%	1.14%	-5.79%	-1.57%
LSTR	67 Neutral	$5.13B	45.09	14.41%	2.56%	-0.74%	-32.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CHRW	61 Neutral	$23.03B	40.36	32.91%	1.51%	-7.08%	71.39%