Hub Group, Inc.
HUBG
Arrangement of Transportation of Freight & Cargo
Mkt Cap
$2.626BPE
19.77Debt
$438.8MCash
$195.4MEV
$2.869BFCF
$282.6MP/E Ratio
19.77Debt
$438.8MCash
$195.4MEV
$2.869BFCF
$282.6MCharts data: {"Earnings":[{"time":"2014-12-30","value":51558000},{"time":"2015-12-30","value":70949000},{"time":"2016-12-30","value":74805000},{"time":"2017-12-30","value":135153000},{"time":"2018-12-30","value":201740000},{"time":"2019-12-30","value":107171000},{"time":"2020-12-30","value":73559000},{"time":"2021-12-30","value":171474000},{"time":"2022-12-30","value":356948000},{"time":"2023-12-30","value":167528000}],"Sales":[{"time":"2014-12-30","value":3571126000},{"time":"2015-12-30","value":3525595000},{"time":"2016-12-30","value":3572790000},{"time":"2017-12-30","value":4034897000},{"time":"2018-12-30","value":3683593000},{"time":"2019-12-30","value":3668117000},{"time":"2020-12-30","value":3495644000},{"time":"2021-12-30","value":4232383000},{"time":"2022-12-30","value":5340490000},{"time":"2023-12-30","value":4202585000}],"Net Margins":[{"time":"2014-12-30","value":0.01443746314187738},{"time":"2015-12-30","value":0.0201239790730359},{"time":"2016-12-30","value":0.02093741865600833},{"time":"2017-12-30","value":0.03349602232721182},{"time":"2018-12-30","value":0.05476717976171635},{"time":"2019-12-30","value":0.02921689793428072},{"time":"2020-12-30","value":0.021043046717571928},{"time":"2021-12-30","value":0.04051476437742047},{"time":"2022-12-30","value":0.06683806167598853},{"time":"2023-12-30","value":0.03986308426837292}],"Assets":[{"time":"2014-12-30","value":1212127000},{"time":"2015-12-30","value":1301146000},{"time":"2016-12-30","value":1360259000},{"time":"2017-12-30","value":1670941000},{"time":"2018-12-30","value":1924898000},{"time":"2019-12-30","value":1991574000},{"time":"2020-12-30","value":2105396000},{"time":"2021-12-30","value":2437294000},{"time":"2022-12-30","value":2810081000},{"time":"2023-12-30","value":2936047000}],"Stockholders Equity":[{"time":"2014-12-30","value":600784000},{"time":"2015-12-30","value":647840000},{"time":"2016-12-30","value":628179000},{"time":"2017-12-30","value":769872000},{"time":"2018-12-30","value":980834000},{"time":"2019-12-30","value":1075279000},{"time":"2020-12-30","value":1157923000},{"time":"2021-12-30","value":1340314000},{"time":"2022-12-30","value":1599602000},{"time":"2023-12-30","value":1634645000}],"ROE":[{"time":"2014-12-30","value":0.08581786465684839},{"time":"2015-12-30","value":0.10951623857742653},{"time":"2016-12-30","value":0.11908229979034639},{"time":"2017-12-30","value":0.17555255938649542},{"time":"2018-12-30","value":0.20568210318973446},{"time":"2019-12-30","value":0.09966808614322423},{"time":"2020-12-30","value":0.06352667664430191},{"time":"2021-12-30","value":0.1279356926809688},{"time":"2022-12-30","value":0.22314800806700666},{"time":"2023-12-30","value":0.10248586084440353}],"ROA":[{"time":"2014-12-30","value":0.06919819457862089},{"time":"2015-12-30","value":0.08994378801456562},{"time":"2016-12-30","value":0.09103707455712479},{"time":"2017-12-30","value":0.05778241122816425},{"time":"2018-12-30","value":0.06489642568073736},{"time":"2019-12-30","value":0.07653243113236063},{"time":"2020-12-30","value":0.05026417833034735},{"time":"2021-12-30","value":0.09783678128284894},{"time":"2022-12-30","value":0.16893498799500797},{"time":"2023-12-30","value":0.07228460579820419}]}
Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services. The company also provides dry van, expedited, less-than-truckload, refrigerated, and flatbed truck brokerage services. It offers a fleet of approximately 2,300 tractors, 750 independent owner-operators, and 4,600 trailers to its customers, as well as the management and infrastructure. The company serves a range of industries, including retail, consumer products, and durable goods. As of December 31, 2022, it owned approximately 48,000 dry, 53-foot containers, as well as 750 refrigerated, 53-foot containers; and leased approximately 225 dry, 53-foot containers. The company was founded in 1971 and is headquartered in Oak Brook, Illinois.
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DCF
Discounted Cash Flow Valuation of Hub Group, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $282.6M | $353.7M | $434.9M | $524.9M | $621.8M | $722.6M | $823.6M | $920.2M | $1.008B | $1.08B | $1.135B | $11.35B |
| DCF | $307.6M | $328.8M | $345.1M | $355.5M | $359.3M | $356.1M | $345.9M | $329.4M | $307.1M | $280.4M | $2.804B | |
| Value | $6.12B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 16%
Earnings Stability 43%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 2% | 2.1% | 3.3% | 5.5% | 2.9% | 2.1% | 4.1% | 6.7% | 4% | 3.3% |
| ROA | 9% | 9.1% | 5.8% | 6.5% | 7.7% | 5% | 9.8% | 17% | 7.2% | 5.9% |
| ROE | 11% | 12% | 18% | 21% | 10% | 6.4% | 13% | 22% | 10% | 8.2% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +4.2%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.17%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +8.85%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.03%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +13.71%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.23%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 1.87 | -41.70 | 7.29 | 39.15 | 2.36 | 6.10 | 3.10 | 1.86 | 1.62 | 1.55 |
| Debt Equity | 0.26 | 0.33 | 0.48 | 0.44 | 0.35 | 0.31 | 0.28 | 0.28 | 0.28 | 0.27 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 78% | 50% | 100% | 100% | 83% | 50% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.55.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -5.49.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.50.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 2.3% | 2.7% | 6.3% | -21% | 0.24% |
| Net Income | 12% | -3.6% | 32% | -53% | -0.5% |
| Stockholders Equity | 15% | 11% | 12% | 2.2% | 0.19% |
| FCF | - | 91% | 68% | 18% | -88% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +2.67%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.24%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -3.65%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -0.5%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +10.76%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +0.19%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +91.17%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -88.36%.