Hunt J B Transport Services Inc

JBHT

Trucking (No Local)

Mkt Cap

$16.42B

PE

24.95

Debt

$1.367B

Cash

$64.19M

EV

$17.72B

FCF

$119M

Market Cap

$16.42B

P/E Ratio

24.95

Debt

$1.367B

Cash

$64.19M

EV

$17.72B

FCF

$119M

Charts data: {"Earnings":[{"time":"2014-12-30","value":374792000},{"time":"2015-12-30","value":427235000},{"time":"2016-12-30","value":432090000},{"time":"2017-12-30","value":686263000},{"time":"2018-12-30","value":489585000},{"time":"2019-12-30","value":516320000},{"time":"2020-12-30","value":506035000},{"time":"2021-12-30","value":760806000},{"time":"2022-12-30","value":969351000},{"time":"2023-12-30","value":728287000}],"Sales":[{"time":"2014-12-30","value":6165441000},{"time":"2015-12-30","value":6187646000},{"time":"2016-12-30","value":6555459000},{"time":"2017-12-30","value":7189568000},{"time":"2018-12-30","value":8614874000},{"time":"2019-12-30","value":9165258000},{"time":"2020-12-30","value":9636573000},{"time":"2021-12-30","value":12168302000},{"time":"2022-12-30","value":14813999000},{"time":"2023-12-30","value":12829665000}],"Net Margins":[{"time":"2014-12-30","value":0.0607891633380321},{"time":"2015-12-30","value":0.06904645159079882},{"time":"2016-12-30","value":0.06591300471866272},{"time":"2017-12-30","value":0.09545260577547914},{"time":"2018-12-30","value":0.05683019856123259},{"time":"2019-12-30","value":0.05633447525426998},{"time":"2020-12-30","value":0.052511925141852815},{"time":"2021-12-30","value":0.06252359614348822},{"time":"2022-12-30","value":0.0654347958306194},{"time":"2023-12-30","value":0.05676586255369879}],"Assets":[{"time":"2014-12-30","value":3397117000},{"time":"2015-12-30","value":3636567000},{"time":"2016-12-30","value":3828988000},{"time":"2017-12-30","value":4465349000},{"time":"2018-12-30","value":5091647000},{"time":"2019-12-30","value":5470854000},{"time":"2020-12-30","value":5928348000},{"time":"2021-12-30","value":6794348000},{"time":"2022-12-30","value":7786582000},{"time":"2023-12-30","value":8538260000}],"Stockholders Equity":[{"time":"2014-12-30","value":1204523000},{"time":"2015-12-30","value":1300352000},{"time":"2016-12-30","value":1414061000},{"time":"2017-12-30","value":1839325000},{"time":"2018-12-30","value":2101384000},{"time":"2019-12-30","value":2267029000},{"time":"2020-12-30","value":2600138000},{"time":"2021-12-30","value":3117816000},{"time":"2022-12-30","value":3666768000},{"time":"2023-12-30","value":4103758000}],"ROE":[{"time":"2014-12-30","value":0.3111538758496102},{"time":"2015-12-30","value":0.32855334555566496},{"time":"2016-12-30","value":0.30556673297686593},{"time":"2017-12-30","value":0.3731058948255474},{"time":"2018-12-30","value":0.23298216794265114},{"time":"2019-12-30","value":0.22775182849447448},{"time":"2020-12-30","value":0.19461851640182176},{"time":"2021-12-30","value":0.24401889014617925},{"time":"2022-12-30","value":0.2643611485646215},{"time":"2023-12-30","value":0.17746831075321692}],"ROA":[{"time":"2014-12-30","value":0.1859052838038843},{"time":"2015-12-30","value":0.1968048436891167},{"time":"2016-12-30","value":0.18830563062616024},{"time":"2017-12-30","value":0.13969546389319176},{"time":"2018-12-30","value":0.13375259518187338},{"time":"2019-12-30","value":0.1341335374696528},{"time":"2020-12-30","value":0.12028966585632288},{"time":"2021-12-30","value":0.15388231512427683},{"time":"2022-12-30","value":0.17100609741218933},{"time":"2023-12-30","value":0.11632299789418453}]}

J.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 115,150 pieces of company-owned trailing equipment; owns and maintains its chassis fleet of 95,553 units; and manages a fleet of 6,081 company-owned tractors, 615 independent contractor trucks, and 7,972 company drivers. The DCS segment designs, develops, and executes supply chain solutions that support various transportation networks. As of December 31, 2022, it operated 12,328 company-owned trucks, 570 customer-owned trucks, and 1 contractor trucks. The company also operates 23,354 owned pieces of trailing equipment and 4,968 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 1,506 company-owned trucks, 303 customer-owned trucks, and 20 independent contractor trucks; and 1,297 owned pieces of trailing equipment and 316 customer-owned trailers. The JBT segment provides dry-van freight services by utilizing tractors and trailers operating over roads and highways through 620 company-owned tractors and 14,718 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.

Sector

10-Q
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10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Hunt J B Transport Services Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

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	$119M	$117.7M	$116.4M	$115.1M	$113.8M	$112.6M	$111.4M	$110.2M	$109M	$107.8M	$106.6M	$1.066B
DCF		$102.3M	$88M	$75.68M	$65.09M	$55.98M	$48.15M	$41.41M	$35.62M	$30.63M	$26.35M	$263.5M
Value	$832.7M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 8.8%

Earnings Stability 57%

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	6.9%	6.6%	9.5%	5.7%	5.6%	5.3%	6.3%	6.5%	5.7%	5.2%
ROA	20%	19%	14%	13%	13%	12%	15%	17%	12%	11%
ROE	33%	31%	37%	23%	23%	19%	24%	26%	18%	16%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.84%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.11%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +13.82%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.16%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +22.35%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.34%.

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.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	6.78	4.57	3.31	12.46	5.31	3.40	4.71	5.34	-13.38	11.49
Debt Equity	0.77	0.70	0.59	0.55	0.57	0.50	0.42	0.34	0.38	0.33
MIN
Graham Stability	-	-	100%	95%	96%	90%	100%	100%	98%	90%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 11.49.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -3.65.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.90.

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.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	10%	8.3%	10%	-13%	0.18%
Net Income	7.7%	8.3%	13%	-25%	-1.1%
Stockholders Equity	16%	14%	16%	12%	0.38%
FCF	-	-	-	-	-7.6%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.29%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.18%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +8.27%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.12%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +14.32%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.38%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -7.56%.