JB Hunt (JBHT) AI Stock Analysis

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JB Hunt

(NASDAQ:JBHT)

Rating:67Neutral

Price Target:

$164.00

▲(8.29%Upside)

JB Hunt's overall score is reflective of stable financial performance and strong cash flow generation capabilities, yet tempered by valuation concerns and earnings call highlights of cost pressures and flat revenue growth. Positive technical trends provide some support but are balanced by valuation metrics suggesting limited upside.

Positive Factors

Capital Allocation

Record buybacks in H1/F25 underscore disciplined capital allocation.

Cost Management

J.B. Hunt's $100 million annualized cost reduction target is expected to provide a relief rally for the stock as it aims to improve earnings through cost savings.

Intermodal Growth

Intermodal load growth showed positive volume, exceeding expectations with sequential growth.

Negative Factors

Cost Inflation

Mix and cost inflation, particularly in insurance and healthcare, hindered the recovery.

FMS Performance

FMS operating income was weaker than expected.

Investor Confidence

There is skepticism in the market regarding the credibility and impact of J.B. Hunt's cost savings program, which may affect investor confidence.

JB Hunt (JBHT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$15.10B

Dividend Yield1.18%

Average Volume (3M)871.16K

Price to Earnings (P/E)27.6

Beta (1Y)1.01

Revenue Growth-2.24%

EPS GrowthN/A

CountryUS

Employees33,646

SectorIndustrials

Sector Strength89

IndustryIntegrated Freight & Logistics

Share Statistics

EPS (TTM)1.31

Shares Outstanding99,194,590

10 Day Avg. Volume805,620

30 Day Avg. Volume871,163

Financial Highlights & Ratios

PEG Ratio-75.29

Price to Book (P/B)2.08

Price to Sales (P/S)0.00

P/FCF Ratio29.28

Enterprise Value/Market Cap1.11

Enterprise Value/Revenue0.34

Enterprise Value/Gross Profit10.11

Enterprise Value/Ebitda2.63

Forecast

1Y Price Target

$160.31

Price Target Upside5.86% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering17

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 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 Key Performance Indicators (KPIs)

Any

Loads by Segment

Loads by Segment
Tracks the volume of shipments handled in each segment, reflecting operational scale and demand trends in different parts of the business.

Chart InsightsJ.B. Hunt's intermodal segment is experiencing strong growth, achieving record first-quarter volumes with an 8% year-over-year increase, despite overall revenue and earnings declines. This growth highlights the company's strategic focus on intermodal efficiencies and network balance. However, the dedicated contract services segment is stabilizing, while integrated capacity solutions and truckload segments face challenges from competitive pressures and muted demand. The company's efforts to reduce costs and improve productivity are crucial in navigating inflationary pressures and maintaining financial strength in a challenging freight environment.

Data provided by:

Main Street Data

JB Hunt Earnings Call Summary

Earnings Call Date:Jul 16, 2025

(Q2-2025)

% Change Since: 0.00%|

Next Earnings Date:Oct 21, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with notable achievements in free cash flow generation, intermodal volume growth, and customer retention. However, these were balanced by declines in operating income, flat revenue growth, and significant cost pressures from inflation. The company is focused on managing costs and preparing for future growth, but current challenges weigh heavily on financial performance.

Q2-2025 Updates

Positive Updates

Strong Free Cash Flow Generation

Generated over $225 million of free cash flow in the quarter, demonstrating the company's financial strength and resilience.

Intermodal Volume Growth

Intermodal volumes increased by 6% year over year, with Eastern volume growing by 15% despite a decrease in TransCon volumes by 1%.

Record Stock Repurchase

Repurchased $319 million of stock during the second quarter, setting a quarterly record for the company.

Dedicated Truck Sales

Sold approximately 275 trucks of new deals in the second quarter, aligning with the annual net sales target of 800 to 1,000 new trucks.

Customer Retention and Service Awards

Achieved some of the highest customer retention numbers in five years and received multiple service awards from customers.

Negative Updates

Operating Income Decline

Operating income decreased by 4% on a consolidated GAAP basis due to inflationary pressures, notably in casualty and medical claims expenses.

Flat Revenue Growth

Consolidated GAAP revenue was flat compared to the prior year quarter, indicating challenges in achieving top-line growth.

Cost Pressures from Inflation

Inflationary pressures in wages, insurance, and equipment costs more than offset efforts to manage costs, impacting margins.

Final Mile Segment Challenges

Demand for big and bulky products, such as furniture and appliances, remained muted, affecting the Final Mile segment.

Intermodal Pricing Challenges

Intermodal pricing underperformed expectations, with modest pricing improvements not fully covering inflationary cost pressures.

Company Guidance

During the J.B. Hunt Transport Services, Inc. Second Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics and strategic initiatives. Revenue for the quarter was flat, while operating income decreased by 4%, and diluted earnings per share was slightly less than 1% below the prior year. The company generated over $225 million in free cash flow, but faced pressures from inflationary costs in areas such as wages, insurance, and equipment. A significant focus was placed on a cost reduction initiative targeting $100 million in annual savings across efficiency, productivity, asset utilization, and technology improvements. J.B. Hunt's intermodal volumes grew by 6% year-over-year, with a notable 15% increase in Eastern volumes, though TransCon volumes decreased by 1%. The company also highlighted its strong cash flow, repurchasing $319 million in stock, and maintaining a solid balance sheet with targeted leverage of one times trailing EBITDA. Looking ahead, J.B. Hunt expects capital expenditures for 2025 to range between $550 million and $650 million, with continued emphasis on operational excellence and market growth, while managing costs to enhance financial performance.

JB Hunt Financial Statement Overview

Summary

JB Hunt demonstrates stable financial performance with strong operational efficiency and a solid balance sheet. Challenges include a slight decline in net profit margin and free cash flow growth, but the company maintains a strong equity position and efficient cash flow generation from operations.

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.

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
EBITDA	1.60B	1.74B	1.33B	1.05B	713.12M
Net Income	570.89M	728.29M	969.35M	760.81M	506.04M
Balance Sheet
Total Assets	8.31B	8.54B	7.74B	6.79B	5.95B
Cash, Cash Equivalents and Short-Term Investments	46.98M	53.34M	51.93M	355.55M	313.30M
Total Debt	1.48B	1.93B	1.26B	1.30B	1.31B
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

Technical Analysis Sentiment

Positive

Last Price151.44

Price Trends

50DMA

143.45

Positive

100DMA

144.02

Positive

200DMA

159.73

Negative

Market Momentum

MACD

2.92

Negative

RSI

57.59

Neutral

STOCH

32.08

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBHT, the sentiment is Positive. The current price of 151.44 is above the 20-day moving average (MA) of 147.59, above the 50-day MA of 143.45, and below the 200-day MA of 159.73, indicating a neutral trend. The MACD of 2.92 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	75 Outperform	$55.27B	13.70	14.69%	2.51%	0.27%	―
EXPD	74 Outperform	$15.52B	18.82	37.70%	1.36%	24.07%	27.40%
XPO	70 Outperform	$15.11B	39.54	26.24%	―	1.94%	60.91%
CHRW	70 Neutral	$11.52B	23.19	32.11%	2.56%	-0.22%	65.52%
LSTR	69 Neutral	$4.77B	27.06	18.34%	1.17%	-4.72%	-22.46%
JBHT	67 Neutral	$15.10B	27.64	14.33%	1.18%	-2.24%	―
Sector *	62 Neutral	C$6.71B	7.66	3.45%	2.77%	6.63%	-23.02%

* Industrials Sector Average

Performance Comparison

JBHT

JB Hunt

151.44

-7.67

-4.82%

CHRW

CH Robinson

97.94

12.68

14.87%

EXPD

Expeditors International

112.93

-5.82

-4.90%

XPO

128.50

17.52

15.79%

FDX

FedEx

228.75

-71.29

-23.76%

LSTR

Landstar System

135.16

-43.98

-24.55%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 17, 2025