Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: 1.5%
• Average Volume (3M): 605.02K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.08
• Revenue Growth: -4.63%
• EPS Growth: -18.94%
• Country: US
• Employees: 6,386
• Sector: Industrials
• Sector Strength: 92
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 60,669,537
• 10 Day Avg. Volume: 580,813
• 30 Day Avg. Volume: 605,021
• PEG Ratio: -4.88
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.05
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 1.78
• 1Y Price Target: $40.25
• Price Target Upside: 20.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 65 Neutral
• Price Target: $37.00 ▲( 11.04% Upside)

Hub Group's stock score is driven primarily by its solid financial foundation and strategic initiatives highlighted in the earnings call. While the company benefits from a stable balance sheet and effective cost management, challenges such as revenue declines and potential market uncertainties weigh on the overall assessment. Technical indicators suggest mixed momentum, and the valuation appears slightly high, which may limit upside potential.

Positive Factors

Intermodal Volume Growth

Hub Group is well positioned for intermodal volume growth given new rail agreements, good cost controls, and solid intermodal service.

Operating Margins

The company delivered a 40-basis point improvement in operating margins in the first quarter.

Negative Factors

Intermodal Revenue

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

Intermodal Volume Decline

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.

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 through its diverse portfolio of logistics and transportation services. The primary revenue streams include intermodal services, which involve the transportation of freight in containers using multiple modes of transportation, such as rail and truck; truck brokerage, where the company arranges the transportation of freight by third-party carriers; and logistics services, which encompass supply chain management, warehousing, and distribution solutions. Additionally, Hub Group offers dedicated trucking services, providing customers with fleets and drivers tailored to their specific needs. Key partnerships with railroads, carriers, and technology providers enhance Hub Group's service offerings and contribute to its earnings by enabling efficient operations and expanded service capabilities.

Hub Group Financial Statement Overview

Summary

Hub Group's financial statements reflect a company with a solid base but facing challenges in revenue growth and profitability margins. The balance sheet remains strong, providing stability, while cash flow management shows room for improvement. Focusing on enhancing revenue streams and operational efficiencies could help improve overall financial health and investor appeal.

Income Statement

Hub Group's income statement shows a mixed performance. The gross profit margin has been consistently high, indicating strong cost management, but net profit margin has decreased over recent years. Revenue has declined, particularly from 2022 to 2024, which could indicate challenges in maintaining sales growth. EBIT and EBITDA margins have also shrunk, suggesting a decrease in operational efficiency. Overall, while the company demonstrates profitability, the declining trend in revenue and margins suggests potential areas for improvement.

Balance Sheet

The balance sheet of Hub Group reflects a relatively healthy financial position. The debt-to-equity ratio is moderate, showing a cautious approach to leveraging. The equity ratio, indicating financial stability, remains robust. However, the return on equity has declined, which could impact investor confidence. Despite these concerns, the company's equity base is solid, providing a strong foundation for future growth and investment.

Cash Flow

Hub Group's cash flow statement reveals mixed signals. Operating cash flow remains strong, indicative of good core business performance. However, free cash flow has seen fluctuations, with a notable decrease from 2023 to 2024. The free cash flow to net income ratio suggests variability in converting income into cash. These cash flow dynamics highlight the need for effective cash management strategies to ensure liquidity and support investment opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.95B	4.20B	5.34B	4.23B	3.50B
	Gross Profit
3.37B	503.66M	889.50M	599.64M	425.44M
	EBIT
140.29M	212.23M	474.72M	238.46M	105.83M
	EBITDA
339.57M	391.86M	610.14M	349.91M	230.50M
	Net Income Common Stockholders
103.99M	167.53M	356.95M	171.47M	73.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.25M	187.27M	286.64M	159.78M	124.51M
	Total Assets
2.87B	2.94B	2.81B	2.44B	2.11B
	Total Debt
508.51M	575.51M	451.74M	322.28M	318.58M
	Net Debt
410.26M	388.25M	165.10M	162.50M	194.07M
	Total Liabilities
1.18B	1.30B	1.21B	1.10B	947.47M
	Stockholders Equity
1.64B	1.63B	1.60B	1.34B	1.16B
Cash Flow		Free Cash Flow
143.57M	282.09M	239.02M	119.88M	59.65M
	Operating Cash Flow
194.42M	422.16M	458.16M	252.84M	174.95M
	Investing Cash Flow
-53.33M	-373.16M	-278.87M	-210.13M	-196.86M
	Financing Cash Flow
-201.33M	-148.41M	-52.46M	-7.41M	-22.30M

Hub Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 33.32 is below the 20-day moving average (MA) of 33.67, below the 50-day MA of 34.49, and below the 200-day MA of 42.07, indicating a bearish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 18.38 is Positive, 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
GXO	74 Outperform	$4.53B	63.99	2.61%	―	23.40%	-55.55%
CHRW	70 Outperform	$11.37B	22.88	32.11%	2.58%	-0.22%	65.52%
LSTR	68 Neutral	$4.79B	27.17	18.34%	1.03%	-4.72%	-22.46%
HUBG	65 Neutral	$2.04B	19.52	6.35%	1.50%	-4.63%	-18.94%
JBHT	65 Neutral	$13.63B	24.95	13.97%	1.26%	-3.82%	-12.80%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.39%	3.96%	-12.36%
FWRD	49 Neutral	$510.81M	―	-147.96%	0.86%	50.11%	-682.50%

Hub Group Corporate Events

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.