Hub Group (HUBG) AI Stock Analysis

• Market Cap: $2.06B
• Dividend Yield: 1.48%
• Average Volume (3M): 544.54K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.07
• Revenue Growth: -4.63%
• EPS Growth: -18.94%
• Country: US
• Employees: 6,386
• Sector: Industrials
• Sector Strength: 90
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 60,669,537
• 10 Day Avg. Volume: 358,932
• 30 Day Avg. Volume: 544,541
• PEG Ratio: 33.55
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.62
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: 1.83
• 1Y Price Target: $40.18
• Price Target Upside: 18.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: $37.00 ▲(9.37%Upside)

Hub Group's stock score is driven primarily by its solid financial foundation and strategic initiatives highlighted in the earnings call. While the company benefits from a stable balance sheet and effective cost management, challenges such as revenue declines and potential market uncertainties weigh on the overall assessment. Technical indicators suggest mixed momentum, and the valuation appears slightly high, which may limit upside potential.

Positive Factors

Intermodal Volume Growth

Hub Group is well positioned for a recovery in over-the-road conversions to intermodal given solid rail service and price-effective lanes.

Operating Margins

The company delivered a 40-basis point improvement in operating margins in the first quarter.

Negative Factors

Future Growth Expectations

Intermodal rate recovery is slower than expected, leading to reduced estimates for future years.

Intermodal Revenue Challenges

Intermodal revenue per load was down 12% due to mix, price, and fuel.

Revenue Decline

Company revenues fell ~8% year-over-year, which fell 6% below market estimates and 5% below consensus.

Hub Group Business Overview & Revenue Model

Company Description

Hub Group, Inc. (HUBG) is a leading supply chain solutions provider specializing in multi-modal transportation services. The company offers comprehensive logistics services, including intermodal, truck brokerage, and logistics management solutions. Serving a wide range of industries such as retail, consumer products, and automotive, Hub Group is dedicated to delivering efficient and reliable transportation solutions that optimize supply chain operations for its clients.

How the Company Makes Money

Hub Group generates revenue primarily through its intermodal and logistics services. The intermodal segment is a major revenue stream, involving the transportation of freight via rail and truck, offering clients an efficient and cost-effective solution for long-distance shipping. In addition to intermodal services, the company earns income from its truck brokerage operations, where it acts as an intermediary to match shippers with carriers. Hub Group also provides comprehensive logistics management services, including transportation management, supply chain optimization, and technology solutions. Key partnerships with railroads and a dedicated network of carriers enhance its service offerings, contributing significantly to its earnings. The company's ability to adapt to market demands and provide integrated logistics solutions supports its financial performance.

Hub Group Financial Statement Overview

Summary

Hub Group demonstrates a solid financial foundation with strengths in balance sheet stability and cash flow generation. However, profitability metrics reveal potential areas for improvement, and recent revenue declines suggest challenges in sustaining growth. The company maintains a conservative leverage position and strong equity support, providing a buffer against potential fluctuations.

Income Statement

The company exhibits moderate profitability with a gross profit margin of 45.1% and a net profit margin of 2.7% for TTM (Trailing-Twelve-Months). However, revenue has decreased by 1.2% compared to the previous annual period, indicating a slight decline. EBIT and EBITDA margins are at 3.6% and 8.1% respectively, which are relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.29, indicating low leverage. The return on equity stands at 6.3%, reflecting moderate returns to shareholders. The equity ratio is 58.4%, suggesting a strong equity base relative to assets, which provides financial stability.

Cash Flow

The company has a solid cash flow profile with an operating cash flow to net income ratio of 1.77, indicating strong cash generation relative to reported earnings. However, the free cash flow decreased by 8.5% compared to the previous annual period, which could impact future investments. The free cash flow to net income ratio of 1.27 suggests good cash flow coverage of net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.86B	3.95B	4.20B	5.34B	4.23B	3.50B
	Gross Profit
1.74B	3.37B	503.66M	889.50M	599.64M	425.44M
	EBIT
140.08M	140.29M	212.23M	474.72M	238.46M	105.83M
	EBITDA
314.08M	339.57M	391.86M	610.14M	349.91M	230.50M
	Net Income Common Stockholders
103.79M	103.99M	167.53M	356.95M	171.47M	73.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
112.67M	98.25M	187.27M	286.64M	159.78M	124.51M
	Total Assets
2.82B	2.87B	2.94B	2.81B	2.44B	2.11B
	Total Debt
485.45M	508.51M	575.51M	451.74M	322.28M	318.58M
	Net Debt
372.78M	410.26M	388.25M	165.10M	162.50M	194.07M
	Total Liabilities
1.17B	1.18B	1.30B	1.21B	1.10B	947.47M
	Stockholders Equity
1.65B	1.64B	1.63B	1.60B	1.34B	1.16B
Cash Flow		Free Cash Flow
131.43M	143.57M	282.09M	239.02M	119.88M	59.65M
	Operating Cash Flow
183.94M	194.42M	422.16M	458.16M	252.84M	174.95M
	Investing Cash Flow
-54.81M	-53.33M	-373.16M	-278.87M	-210.13M	-196.86M
	Financing Cash Flow
-183.29M	-201.33M	-148.41M	-52.46M	-7.41M	-22.30M

Hub Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUBG, the sentiment is Neutral. The current price of 33.83 is below the 20-day moving average (MA) of 34.43, above the 50-day MA of 33.74, and below the 200-day MA of 41.63, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HUBG.

Hub Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GXO	71 Outperform	$4.83B	69.06	2.61%	―	23.40%	-55.55%
CHRW	68 Neutral	$11.37B	22.89	32.11%	2.58%	-0.22%	65.52%
JBHT	67 Neutral	$13.91B	25.46	13.97%	1.24%	-3.82%	-12.80%
LSTR	66 Neutral	$4.90B	27.78	18.34%	1.01%	-4.72%	-22.46%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
HUBG	65 Neutral	$2.06B	19.73	6.35%	1.48%	-4.63%	-18.94%
FWRD	54 Neutral	$568.61M	―	-147.96%	0.86%	50.11%	-682.50%

Hub Group Corporate Events

Hub Group Holds Annual Meeting, Elects Directors

On May 13, 2025, Hub Group, Inc. held its Annual Meeting at its headquarters in Oak Brook, Illinois, where stockholders voted on key proposals. The election of directors saw all ten nominees elected, while the compensation of executive officers was approved on an advisory basis. Additionally, the appointment of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, was ratified, indicating continued confidence in the company’s governance and financial oversight.

The most recent analyst rating on (HUBG) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Hub Group stock, see the HUBG Stock Forecast page.