Hub Group, Inc.

Hub Group offers transportation and logistics services in North America. Its services include intermodal, truckload, and various types of trucking. Logistics services include full outsource solutions, freight consolidation, warehousing, and final mile delivery. The company also provides brokerage services and owns a fleet of tractors, trailers, and containers. It serves industries like retail, consumer products, and durable goods. As of 2023, Hub Group owned approximately 50,000 dry containers, 900 refrigerated containers, and had a tractor fleet of around 2,300 units. The company was founded in 1971 and is headquartered in Illinois.

Overview

Sector

Logistics

Target Price

41.8 USD

Current Price

32.9 USD

Potential

27%

Strengths

Current Price to Earnings Ratio (19.39) is lower than the sector mean (28.02).
Price to book ratio (1.23) is lower than the sector mean (11.05).
The company has low debt. Net Debt to EBITDA Ratio is 0.49 and it is lower than the sector mean.
EV/EBITDA (6.45) is lower than the sector mean (12.75).
EV/EBIT (14.85) is lower than the sector mean.
Price to free cash flow (14.05) is lower than the sector mean.

Weaknesses

The company have lower returns than the sector in which it operates. ROIC (10.18%) is significantly lower than the sector mean (15.76%).
EBITDA Margin (8.57%) appears relatively low.

Key Financial Data

Indicator	Value
PER	19.4
EV/EBITDA	6.5
Price/Free Cash Flow'	14.1
ROIC	10.2%
Net Debt/EBITDA	0.5