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JB Hunt Transport Services (JBHT)
NASDAQ:JBHT
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JB Hunt
(NASDAQ:JBHT)
64Neutral
Positive Factors
Financial Performance
JBI revenue and operating margins were better than estimates.
Intermodal Performance
J.B. Hunt Transport Services posted 8% Intermodal load growth, which is above the target, indicating strong performance in this area.
Negative Factors
Macroeconomic Uncertainty
The price objective has been lowered, reflecting the impact of macroeconomic uncertainties and tariff concerns on the company's future earnings potential.
Operational Challenges
There is a reduction in profit targets for the Dedicated segment due to delays in some fleet launches, indicating operational challenges.
Tariff and Market Pressure
The company is facing uncertainty due to pending tariffs and market pricing pressure, which could impact future volume movements and profitability.
JB Hunt (JBHT) vs. S&P 500 (SPY)
Market Cap
$12.98B
Dividend Yield1.26%
Average Volume (3M)1.55M
Price to Earnings (P/E)24.3
Beta (1Y)0.92
Revenue Growth-3.82%
EPS Growth-12.80%
CountryUS
Employees33,646
SectorIndustrials
Sector Strength82
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)1.17
Shares Outstanding99,194,590
10 Day Avg. Volume1,507,134
30 Day Avg. Volume1,550,801
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.26
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit13.08
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$153.68Price Target Upside13.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
JB Hunt Business Overview & Revenue Model
Company DescriptionJ.B. Hunt Transport Services, Inc. provides surface transportation, delivery, and logistic services in North America. It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). The JBI segment offers intermodal freight solutions. It operates 104,973 pieces of company-owned trailing equipment; owns and maintains its chassis fleet of 85,649 units; and manages a fleet of 5,612 company-owned tractors, 582 independent contractor trucks, and 6,943 company drivers. The DCS segment designs, develops, and executes supply chain solutions that support various transportation networks. As of December 31, 2021, it operated 11,139 company-owned trucks, 544 customer-owned trucks, and 6 contractor trucks. The company also operates 21,069 owned pieces of trailing equipment and 7,753 customer-owned trailers. The ICS segment provides freight brokerage and transportation logistics solutions; flatbed, refrigerated, expedited, and less-than-truckload, as well as dry-van and intermodal solutions; an online multimodal marketplace; and logistics management for customers to outsource the transportation functions. The FMS segment offers delivery services through 1,272 company-owned trucks, 272 customer-owned trucks, and 19 independent contractor trucks; and 1,036 owned pieces of trailing equipment and 185 customer-owned trailers. The JBT segment provides dry-van freight services by utilizing tractors and trailers operating over roads and highways through 734 company-owned tractors and 11,172 company-owned trailers. It also transports or arranges for the transportation of freight, such as general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. The company was incorporated in 1961 and is headquartered in Lowell, Arkansas.
How the Company Makes MoneyJ.B. Hunt makes money through a diversified revenue model based on its major business segments. The intermodal segment, which involves the transportation of freight using multiple modes of transport (primarily rail and truck), is a significant revenue driver, capitalizing on partnerships with major rail carriers to provide cost-effective and environmentally friendly solutions. The dedicated contract services division offers tailor-made transportation solutions to customers, ensuring steady revenue through long-term contracts. Integrated capacity solutions and truckload services provide additional revenue streams by offering flexible freight capacity and direct trucking services. The company's earnings are also bolstered by strategic partnerships with railroads, technological investments for optimizing logistics, and a focus on expanding its service offerings to meet diverse customer needs.
JB Hunt Financial Statement Overview
Summary
JB Hunt demonstrates stable financial performance with strong operational efficiency and a solid balance sheet. However, challenges in net profit margin and free cash flow growth indicate areas needing improvement.Income Statement
The income statement reflects stable revenue with a slight decrease in the TTM period. Gross profit margin is healthy at approximately 28.9%, and the EBIT margin is solid at around 6.8%. However, the net profit margin has slightly declined to approximately 4.7% in the TTM, indicating pressure on profitability. Despite this, EBITDA margin remains strong at 13.1%, supporting operational efficiency.―
Balance Sheet
The balance sheet strength is evident with a strong equity position, as the equity ratio stands at 100% for the TTM period. The debt-to-equity ratio is manageable at approximately 0.19, reflecting a conservative leverage approach. Return on equity is modest at 6.8%, indicating room for improvement in profitability relative to equity.75
Cash Flow
Cash flow analysis shows a decrease in free cash flow growth in the TTM period, yet the operating cash flow to net income ratio remains strong at 2.53, indicating efficient cash generation from operations. The free cash flow to net income ratio is lower at 0.91, suggesting potential constraints in cash flow after capital expenditures.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.09B | 12.83B | 14.81B | 12.17B | 9.64B | Gross Profit |
| 1.25B | 2.40B | 2.47B | 1.87B | 1.45B | EBIT |
| 845.78M | 993.20M | 687.03M | 488.44M | 185.74M | EBITDA |
| 1.60B | 1.74B | 1.33B | 1.05B | 713.12M | Net Income Common Stockholders |
| 570.89M | 728.29M | 969.35M | 760.81M | 506.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 46.98M | 53.34M | 51.93M | 355.55M | 313.30M | Total Assets |
| 8.53B | 8.54B | 7.74B | 6.79B | 5.95B | Total Debt |
| 1.48B | 1.93B | 1.26B | 1.30B | 1.31B | Net Debt |
| 1.43B | 1.88B | 1.21B | 945.68M | 992.12M | Total Liabilities |
| 4.30B | 4.43B | 4.08B | 3.67B | 3.35B | Stockholders Equity |
| 4.01B | 4.10B | 3.67B | 3.12B | 2.60B |
| Cash Flow | Free Cash Flow | |||
| 617.78M | -117.81M | 236.09M | 276.33M | 384.31M | Operating Cash Flow |
| 1.48B | 1.74B | 1.78B | 1.22B | 1.12B | Investing Cash Flow |
| -663.69M | -1.69B | -1.55B | -877.02M | -612.96M | Financing Cash Flow |
| -825.83M | -57.99M | -530.43M | -304.63M | -231.60M |
JB Hunt Technical Analysis
Neutral
135.53
Price Trends
141.81
Negative
156.27
Negative
165.06
Negative
Market Momentum
-2.06
Negative
50.47
Neutral
79.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBHT, the sentiment is Neutral. The current price of 135.53 is above the 20-day moving average (MA) of 131.31, below the 50-day MA of 141.81, and below the 200-day MA of 165.06, indicating a neutral trend. The MACD of -2.06 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JBHT.
JB Hunt Risk Analysis
JB Hunt disclosed 15 risk factors in its most recent earnings report. JB Hunt reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JB Hunt Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.63B | 18.56 | 37.70% | 1.32% | 24.07% | 27.40% | |
71 Outperform | $51.13B | 13.62 | 14.74% | 2.52% | 0.34% | -8.45% | |
70 Outperform | $10.49B | 21.49 | 32.11% | 2.82% | -0.22% | 65.52% | |
64 Neutral | $12.98B | 24.26 | 13.97% | 1.26% | -3.82% | -12.80% | |
64 Neutral | $4.30B | 11.84 | 5.23% | 249.82% | 4.06% | -10.21% | |
63 Neutral | $4.60B | 24.55 | 20.03% | 1.03% | -9.13% | -25.11% | |
61 Neutral | $12.69B | 33.14 | 26.24% | ― | 1.94% | 60.91% |
* Industrials Sector Average
Performance Comparison
JBHT
JB Hunt
135.53
-32.05
-19.13%
CHRW
CH Robinson
88.97
6.61
8.03%
EXPD
Expeditors International
109.10
-7.10
-6.11%
XPO
XPO
111.01
1.53
1.40%
FDX
FedEx
217.83
-43.59
-16.67%
LSTR
Landstar System
135.56
-45.31
-25.05%
JB Hunt Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q1-2025)
| % Change Since: 0.63%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While there were significant achievements such as record intermodal volumes and improved safety measures, the company faced challenges with declining revenue and earnings, inflationary pressures, and a competitive truckload market. The economic environment remained uncertain, making strategic planning difficult.Q1-2025 Updates
Positive Updates
Record First-Quarter Intermodal Volumes
J.B. Hunt achieved record first-quarter intermodal volumes, with overall demand for intermodal services being strong and volumes up 8% year over year.
Dedicated Contract Services Performance
Dedicated Contract Services maintained industry-leading margins, with sales of approximately 260 trucks of new deals during the first quarter.
Cost Control and Productivity Improvements
The company has reduced people costs by over $200 million through headcount attrition and performance management over the past two years.
Safety Achievements
J.B. Hunt achieved further improvements in safety performance, with the maintenance team in Cedar Rapids, Iowa, reaching one million collective work hours without any injuries.
Strong Customer Sentiment
Customer sentiment remained high, with J.B. Hunt receiving several awards for service excellence during the quarter.
Negative Updates
Revenue and Earnings Decline
Consolidated GAAP revenue declined 1%, operating income decreased 8%, and diluted EPS decreased 4% compared to the prior year quarter.
Inflationary Cost Pressures
Inflationary cost headwinds and insurance premiums increased for the third consecutive year, negatively impacting margins.
Challenges in Highway and Final Mile Businesses
Demand for big and bulky products remained muted, with weak demand for furniture, exercise equipment, and appliances.
Competitive Pressure in Truckload Market
The truckload market showed signs of excess capacity, resulting in competitive pressure on pricing.
Uncertain Economic Environment
The company faced an unpredictable economic backdrop, with uncertainties surrounding tariffs and demand trends impacting strategic planning.
Company Guidance
In the J.B. Hunt Transport Services, Inc. first-quarter 2025 earnings call, the company reported a 1% decline in revenue, an 8% decrease in operating income, and a 4% drop in diluted EPS compared to the previous year, primarily due to lower yields and inflationary cost pressures, notably insurance premiums. Despite these challenges, J.B. Hunt achieved record first-quarter intermodal volumes with an 8% year-over-year increase in overall volumes. The company's tax rate is expected to remain between 24% and 25% for the full year. J.B. Hunt has reduced its people costs by over $200 million over the past two years but faced offsets from merit increases and higher employee benefits costs. Capital expenditures for 2025 are projected to be between $500 million and $700 million, down from the previous estimate of $700 million to $900 million. The company repurchased $234 million of stock during the quarter and has $650 million remaining under current authorization. Operationally, J.B. Hunt is focusing on improving equipment utilization, network balance, and driving efficiencies to enhance margins, particularly in its intermodal and dedicated segments. The company remains committed to long-term growth and maintaining financial strength amidst a challenging freight environment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.