JB Hunt (JBHT) AI Stock Analysis

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JB Hunt

(NASDAQ:JBHT)

Rating:64Neutral

Price Target:

$159.00

▲(11.00% Upside)

JB Hunt's strong balance sheet and operational initiatives are positive, but challenges in revenue growth and profitability due to inflationary pressures weigh heavily. The stock's technical indicators suggest caution, and valuation metrics indicate potential overvaluation. Overall, the company is navigating a mixed environment with both opportunities and risks.

Positive Factors

Cost Management

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

Rail Mergers

JB Hunt is considered a net winner from potential transcontinental consolidation, supporting an 'Overweight' rating.

Share Buybacks

Record buybacks in H1/F25 underscore disciplined capital allocation.

Negative Factors

Cost Savings Skepticism

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

FMS Operating Income

FMS operating income was weaker than expected.

Service Disruption

Hunt faces potential short-term service/customer disruption if UP merges with NS and BN merges with CSX, although it is expected to benefit eventually.

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

Market Cap

$13.87B

Dividend Yield1.25%

Average Volume (3M)1.04M

Price to Earnings (P/E)26.0

Beta (1Y)1.02

Revenue Growth-2.24%

EPS Growth-5.43%

CountryUS

Employees33,646

SectorIndustrials

Sector Strength84

IndustryIntegrated Freight & Logistics

Share Statistics

EPS (TTM)1.31

Shares Outstanding96,799,280

10 Day Avg. Volume1,088,421

30 Day Avg. Volume1,038,793

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.14

Enterprise Value/Revenue1.30

Enterprise Value/Gross Profit2.84

Enterprise Value/Ebitda10.06

Forecast

1Y Price Target

$160.59

Price Target Upside12.11% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering17

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 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: -5.41%|

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 shows strong balance sheet stability with low leverage and high equity ratios. While margins are solid, recent revenue declines and a drop in net income margins introduce challenges. Cash flow management is adequate but requires improvement to support future growth.

Income Statement

Positive

JB Hunt's revenue has shown fluctuations with a notable decline from 2022 to 2023. Gross profit margin for TTM is strong at approximately 46%, indicating effective cost management. However, the net profit margin in the TTM period has decreased, reflecting potential challenges in controlling overall expenses. The EBITDA margin is healthy, suggesting a robust core operating performance despite the revenue decline.

Balance Sheet

Positive

JB Hunt maintains a solid balance sheet with a debt-to-equity ratio of 0.21 for TTM, demonstrating prudent leverage management. The equity ratio of approximately 74.5% indicates a strong capital structure with ample shareholder equity. Return on Equity (ROE) is at 6.72%, which reflects moderate profitability from shareholders' investments.

Cash Flow

Positive

The company has a stable operating cash flow to net income ratio of 2.64, showing efficient cash conversion capabilities. Free cash flow has decreased in the TTM, resulting in negative growth. The free cash flow to net income ratio stands at 1.08, which is satisfactory but highlights the need for improved cash flow management.

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	1.98B	1.60B	1.24B
Net Income	570.89M	728.29M	969.35M	760.81M	506.04M
Balance Sheet
Total Assets	8.31B	8.59B	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	1.57B	1.48B	1.44B
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

Negative

Last Price143.24

Price Trends

50DMA

145.05

Negative

100DMA

142.26

Positive

200DMA

158.28

Negative

Market Momentum

MACD

-1.05

Positive

RSI

43.73

Neutral

STOCH

20.94

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBHT, the sentiment is Negative. The current price of 143.24 is below the 20-day moving average (MA) of 148.57, below the 50-day MA of 145.05, and below the 200-day MA of 158.28, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDX	74 Outperform	$52.47B	12.93	14.68%	2.57%	0.27%	-2.64%
EXPD	72 Outperform	$15.93B	19.08	39.01%	1.29%	24.07%	27.40%
CHRW	66 Neutral	$13.74B	26.48	32.43%	2.18%	-2.55%	59.07%
JBHT	64 Neutral	$13.87B	26.03	14.33%	1.25%	-2.24%	-5.43%
Sector *	64 Neutral	$10.60B	16.52	5.71%	2.12%	2.78%	-25.85%
LSTR	61 Neutral	$4.52B	26.92	17.47%	2.71%	-2.10%	-22.19%
XPO	59 Neutral	$0.00	41.66	21.10%	―	-0.11%	-4.28%

* Industrials Sector Average

Performance Comparison

JBHT

JB Hunt

143.24

-19.30

-11.87%

CHRW

CH Robinson

116.32

20.16

20.97%

EXPD

Expeditors International

116.31

-1.29

-1.10%

XPO

120.42

5.79

5.05%

FDX

FedEx

222.41

-50.23

-18.42%

LSTR

Landstar System

130.53

-55.31

-29.76%

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 29, 2025