Hub Group, Inc.

HUBG

$36.54

+1.70%

N/A+$0.61

Industrials

Integrated Freight & Logistics

NASDAQ

Active Trading

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. It operates in two segments, ...

Fundamental Analysis of HUBG

Key Strengths

Diversified service offering combining asset-based intermodal and asset-light logistics, providing revenue stability and cross-selling opportunities.

Leading market position in domestic intermodal, benefiting from the shift towards rail-based transportation for sustainability and cost efficiency.

Risk Factors

Cyclicality in freight demand tied to macroeconomic conditions; a downturn could depress volumes and margins.

Thin profit margins (net margin 2.9%) expose the company to rising fuel costs, driver shortages, and pricing pressure.

Profitability

Net Margin2.93%

Operating Margin4.03%

Valuation

P/E Ratio27.07x

Current Ratio1.47

Efficiency

ROE4.81%

ROA2.78%

Fundamental Analysis of HUBG

Hub Group, Inc. is a leading North American supply chain solutions provider, operating primarily in intermodal and logistics services. The company has demonstrated resilience through its diversified business model, combining asset-based intermodal operations with asset-light logistics services. As of the latest TTM data, Hub Group's financial metrics indicate a stable but mature business. Revenue per share stands at $45.92, with net income per share of $1.34. The company's profitability margins are relatively thin, with a net margin of 2.9% and operating margin of 4.0%, reflecting the competitive and cost-intensive nature of the freight industry. However, the EBITDA margin of 8.8% suggests healthy operational cash generation. The balance sheet appears solid, with a current ratio of 1.47, quick ratio of 1.47, and moderate leverage (debt-to-equity of 29.3%, debt-to-assets of 17.2%). Interest coverage is strong at 11.8, indicating ample ability to meet debt obligations. Return on equity (4.8%) and return on assets (2.8%) are below average, which may signal inefficiencies or cyclical headwinds. The company has a price-to-earnings ratio of 35.4, which is elevated relative to historical averages, possibly reflecting market expectations of a turnaround. Growth metrics are concerning: revenue growth has been negative recently, and EPS growth YoY is not provided but implied weak. Free cash flow growth is also negative, though free cash flow yield is 4.2%. Hub Group pays a modest dividend with a yield of 1.0% and a payout ratio of 27.9%, which is sustainable. The stock has a beta of 1.22, indicating higher volatility than the market. In summary, Hub Group operates in a cyclical industry with thin margins, but its strong balance sheet and strategic positioning in intermodal (a more efficient mode of transport) provide a foundation for long-term recovery. The elevated valuation suggests market optimism about future growth, but investors should monitor margin expansion and industry conditions.

Key Strengths of HUBG

Diversified service offering combining asset-based intermodal and asset-light logistics, providing revenue stability and cross-selling opportunities.
Leading market position in domestic intermodal, benefiting from the shift towards rail-based transportation for sustainability and cost efficiency.
Strong balance sheet with healthy liquidity ratios (current ratio 1.47) and manageable leverage, providing financial flexibility.
Strong interest coverage of 11.8, indicating low default risk and ability to invest through cycles.
Modest dividend with a payout ratio of 27.9% that is well-covered by free cash flow, offering a shareholder return component.
Experienced management and a company culture that emphasizes employee well-being, potentially reducing turnover and enhancing productivity.
Extensive asset base including 50,000 containers and tractors, enabling scale and operational efficiencies.

Risk Factors of HUBG

Cyclicality in freight demand tied to macroeconomic conditions; a downturn could depress volumes and margins.
Thin profit margins (net margin 2.9%) expose the company to rising fuel costs, driver shortages, and pricing pressure.
Elevated valuation (P/E of 35.4) may not be justified if earnings growth fails to materialize, leading to stock price correction.
Intense competition from truckload carriers and other 3PLs, which could pressure pricing and market share.
Regulatory and environmental changes could increase compliance costs, particularly for rail and trucking operations.
Customer concentration risk as a small number of large customers could significantly impact revenue.
Negative revenue growth trends and potential further deterioration if industry conditions worsen.
Potential accounting or governance risks, as highlighted by external analyses and recent disclosures, which could erode investor confidence.

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$2.21B

27.1x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin56.89%

Net Profit Margin2.93%

Debt/Equity Ratio0.29

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of HUBG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of HUBG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	3.06%	—	—	Flat
Operating Margin	—	4.22%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of HUBG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	1.474	—	—	Flat
Quick Ratio	—	1.474	—	—	Flat
Debt / Equity	—	0.293	—	—	Flat

Valuation of HUBG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	17.94x	—	—	Flat
P/B	—	1.21x	—	—	Flat

Supply Chain of HUBG

RELATIONS

Upstream

Union Pacific RailroadNYSE:UNP Norfolk Southern RailwayNYSE:NSC Canadian National RailwayNYSE:CNI BNSF RailwayNYSE:BRK.BFerromex (Ferrocarril Mexicano)BMV:GMXTTransportes EASOHub Group Trucking (formerly Comtrak)DCLI (Direct ChassisLink, Inc.)TRAC Intermodal

Downstream

The Home Depot, Inc.NYSE:HD Walmart Inc.NYSE:WMTTop 10 Customers (aggregate, incl. unnamed)Top 50 Customers (aggregate)

Proxies

J.B. Hunt Transport Services, Inc.NASDAQ:JBHT C.H. Robinson Worldwide, Inc.NASDAQ:CHRW XPO Logistics, Inc.NYSE:XPO Schneider National, Inc.NYSE:SNDR Knight-Swift Transportation Holdings Inc.NYSE:KNX

About UsPrivacy PolicyTerms of ServiceDisclaimerStock DirectoryETFsIndices13F HoldingsAnalyst TargetsFree ToolsTechnology MapJoin our Slack

Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer