Hub Group, Inc. (HUBG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DoorDash, Inc.

C.H. Robinson Worldwide, Inc.

Maplebear, Inc.

Expeditors International of Washington, Inc.

Hub Group, Inc.

United Parcel Service, Inc.

GXO Logistics, Inc.

FedEx Corp.

CryoPort, Inc.

Pitney Bowes, Inc.

Shengfeng Development Ltd.

Why is Hub Group, Inc. ?

High Management Efficiency with a high ROE of 11.60%

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 175.49 MM
ROCE(HY) Lowest at 6.03%
CASH AND EQV(HY) Lowest at USD 304.71 MM

With ROE of 6.32%, it has a very expensive valuation with a 1.41 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.97%, its profits have fallen by -21.6%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -27.97% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hub Group, Inc. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hub Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hub Group, Inc.

-22.96%

-0.32

36.42%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.96%

EBIT Growth (5y)

2.93%

EBIT to Interest (avg)

27.02

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

2.13

Tax Ratio

22.09%

Dividend Payout Ratio

29.38%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.74%

ROE (avg)

11.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.41

EV to EBIT

17.71

EV to EBITDA

7.50

EV to Capital Employed

1.37

EV to Sales

0.64

PEG Ratio

Dividend Yield

69.02%

ROCE (Latest)

7.74%

ROE (Latest)

6.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,601.02

DIVIDEND PAYOUT RATIO(Y)

Highest at 29.81%

RAW MATERIAL COST(Y)

Fallen by -1.56% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 175.49 MM

ROCE(HY)

Lowest at 6.03%

CASH AND EQV(HY)

Lowest at USD 304.71 MM

NET SALES(Q)

Lowest at USD 905.65 MM

Here's what is working for Hub Group, Inc.

Interest Coverage Ratio

Highest at 2,601.02

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend Payout Ratio

Highest at 29.81%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.56% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hub Group, Inc.

Operating Cash Flow

Lowest at USD 175.49 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 905.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 304.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents