Hub Group, Inc. (HUBG) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Hub's EV/EBITDA of 0.6 is above its 5-year median of 0.4.

P/B below the industry

Hub's price-to-book of 0.00 is below the Transportation Services median of 1.77.

Trading below fair value

The share price of $24.60 is below our fair value estimate of $30944.91.

Margin of safety over 20%

The price is 99.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -12.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -3.2% over the last twelve months, against a 5-year average of -0.6% a year.

Growing slower than the industry

Revenue grew -5.8% over the last twelve months; the Transportation Services median is 2.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 6.3% over the last twelve months and averaged 12.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Hub's return on equity of 6.3% is above the Transportation Services median of -22.9%.

Earnings shrank over 5 years

Net income shrank 0.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.8% over the last twelve months, against a 5-year average of 3.9%.

Net margin above the industry

Hub's net margin of 2.8% is above the Transportation Services median of -6.7%.

Low debt

Debt is 15.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 26.2% five years ago to 15.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 62.8% of total debt.

Interest well covered

Operating income covers interest expense 11.2 times.

Short-term assets cover short-term debts

Current assets are 1.47 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.56; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Hub paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Hub yields 2.0%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 28.6% of net income.

Covered by free cash flow

Dividends take 26.5% of free cash flow.