JB Hunt (JBHT) AI Stock Analysis

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JB Hunt

(NASDAQ:JBHT)

Rating:65Neutral

Price Target:

$150.00

▲(6.66%Upside)

JB Hunt's overall stock score reflects a combination of stable financial performance and mixed earnings call sentiment. The technical analysis indicates neutral momentum, while valuation metrics suggest the stock could be overvalued. Key strengths include operational efficiency and a strong equity position, but profitability challenges and market pressures pose risks.

Positive Factors

Earnings Performance

JBHT reported 1Q EPS of $1.17 beating the $1.13 estimate and the Street forecast of $1.15, driving consolidated results to the high end of management's previously guided range.

Intermodal Growth

J.B. Hunt Transport Services posted 8% Intermodal load growth, which is above the target, indicating strong performance in this area.

Stock Buyback

JBHT repurchased $234MM in stock in the quarter.

Negative Factors

Competitive Intermodal Market

Intermodal bid season has proven significantly competitive amid a persistently weak TL market and JBHT attested to losing customers that resisted rate hikes.

Dedicated Segment Challenges

There is a reduction in profit targets for the Dedicated segment due to delays in some fleet launches, indicating operational challenges.

Tariff Uncertainty

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. SPDR S&P 500 ETF (SPY)

Market Cap

$13.55B

Dividend Yield1.27%

Average Volume (3M)1.26M

Price to Earnings (P/E)24.8

Beta (1Y)1.01

Revenue Growth-3.82%

EPS Growth-12.80%

CountryUS

Employees33,646

SectorIndustrials

Sector Strength92

IndustryIntegrated Freight & Logistics

Share Statistics

EPS (TTM)1.17

Shares Outstanding99,194,590

10 Day Avg. Volume1,010,687

30 Day Avg. Volume1,260,159

Financial Highlights & Ratios

PEG Ratio-26.69

Price to Book (P/B)1.63

Price to Sales (P/S)0.00

P/FCF Ratio26.20

Enterprise Value/Market Cap1.11

Enterprise Value/Revenue0.31

Enterprise Value/Gross Profit9.07

Enterprise Value/Ebitda2.36

Forecast

1Y Price Target

$154.00

Price Target Upside9.51% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering20

JB Hunt Business Overview & Revenue Model

Company DescriptionJ.B. Hunt Transport Services, Inc. (JBHT) is a leading American transportation and logistics company. Founded in 1961 and headquartered in Lowell, Arkansas, the company operates in the transportation sector, providing a wide array of services including intermodal transport, dedicated contract services, truckload, less-than-truckload (LTL), and final mile delivery services. J.B. Hunt is renowned for its innovative approach to logistics, leveraging technology to optimize supply chain efficiency and deliver reliable services to its diverse customer base across North America.

How the Company Makes MoneyJ.B. Hunt primarily makes money through its four key business segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Final Mile Services (FMS). The Intermodal segment, which involves the transportation of freight in containers using multiple modes of transport (typically combining rail and truck), is a significant revenue driver, benefiting from partnerships with major rail providers. The Dedicated Contract Services segment offers customized transportation solutions with dedicated fleets tailored to specific customer needs, providing recurring revenue through long-term contracts. The Integrated Capacity Solutions segment focuses on freight brokerage, connecting shippers with carriers to optimize load capacity and logistics efficiency. Lastly, the Final Mile Services segment specializes in home delivery of large goods, leveraging J.B. Hunt's logistics network to handle the last leg of delivery efficiently. The company's earnings are bolstered by its strategic partnerships with major retailers and its investment in technology to enhance operational efficiency and customer service.

JB Hunt Earnings Call Summary

Earnings Call Date:Apr 15, 2025

(Q1-2025)

% Change Since: 4.42%|

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.

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

Positive

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

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
12.06B	12.09B	12.83B	14.81B	12.17B	9.64B
	Gross Profit
1.65B	1.25B	2.40B	2.47B	1.87B	1.45B
	EBIT
815.54M	845.78M	993.20M	687.03M	488.44M	185.74M
	EBITDA
1.58B	1.60B	1.74B	1.33B	1.05B	713.12M
	Net Income Common Stockholders
561.13M	570.89M	728.29M	969.35M	760.81M	506.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.19M	46.98M	53.34M	51.93M	355.55M	313.30M
	Total Assets
8.43B	8.31B	8.54B	7.74B	6.79B	5.95B
	Total Debt
1.37B	1.48B	1.93B	1.26B	1.30B	1.31B
	Net Debt
1.30B	1.43B	1.88B	1.21B	945.68M	992.12M
	Total Liabilities
4.26B	4.30B	4.43B	4.08B	3.67B	3.35B
	Stockholders Equity
4.17B	4.01B	4.10B	3.67B	3.12B	2.60B
Cash Flow		Free Cash Flow
513.08M	617.78M	-117.81M	236.09M	276.33M	384.31M
	Operating Cash Flow
1.42B	1.48B	1.74B	1.78B	1.22B	1.12B
	Investing Cash Flow
-726.35M	-663.69M	-1.69B	-1.55B	-877.02M	-612.96M
	Financing Cash Flow
-715.31M	-825.83M	-57.99M	-530.43M	-304.63M	-231.60M

JB Hunt Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price140.63

Price Trends

50DMA

138.21

Positive

100DMA

151.54

Negative

200DMA

163.30

Negative

Market Momentum

MACD

0.29

Positive

RSI

51.79

Neutral

STOCH

33.41

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 140.63 is below the 20-day moving average (MA) of 140.86, above the 50-day MA of 138.21, and below the 200-day MA of 163.30, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.41 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 1 New Risks

We depend on third parties in the operation of our business, particularly rail service providers, transportation equipment manufacturers, third party carriers and independent contractors. Q4, 2024

JB Hunt Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	77 Outperform	$52.21B	13.68	14.74%	2.53%	0.34%	-8.45%
EXPD	75 Outperform	$15.23B	18.46	37.70%	1.31%	24.07%	27.40%
CHRW	69 Neutral	$11.41B	22.96	32.11%	2.57%	-0.22%	65.52%
LSTR	66 Neutral	$4.81B	27.30	18.34%	1.02%	-4.72%	-22.46%
Sector *	65 Neutral	$4.44B	12.22	5.28%	248.14%	4.08%	-12.12%
JBHT	65 Neutral	$13.55B	24.81	13.97%	1.27%	-3.82%	-12.80%
XPO	65 Neutral	$13.30B	35.38	26.24%	―	1.94%	60.91%

* Industrials Sector Average

Performance Comparison

JBHT

JB Hunt

140.63

-16.84

-10.69%

CHRW

CH Robinson

96.16

10.71

12.53%

EXPD

Expeditors International

111.57

-13.11

-10.51%

XPO

114.93

6.43

5.93%

FDX

FedEx

219.78

-23.18

-9.54%

LSTR

Landstar System

140.48

-36.90

-20.80%

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.