Hub Group, Inc.
Hub Group, Inc. Fundamental Analysis
Hub Group, Inc. (HUBG) shows weak financial fundamentals with a PE ratio of 23.76, profit margin of 2.82%, and ROE of 6.30%. The company generates $3.8B in annual revenue with weak year-over-year growth of -6.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HUBG's fundamental strength across five key dimensions:
Efficiency Score
WeakHUBG struggles to generate sufficient returns from assets.
Valuation Score
ModerateHUBG shows balanced valuation metrics.
Growth Score
WeakHUBG faces weak or negative growth trends.
Financial Health Score
ExcellentHUBG maintains a strong and stable balance sheet.
Profitability Score
WeakHUBG struggles to sustain strong margins.
Key Financial Metrics
Is HUBG Expensive or Cheap?
P/E Ratio
HUBG trades at 23.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HUBG's PEG of 4.38 indicates potential overvaluation.
Price to Book
The market values Hub Group, Inc. at 1.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.33 times EBITDA. This is generally considered low.
How Well Does HUBG Make Money?
Net Profit Margin
For every $100 in sales, Hub Group, Inc. keeps $2.82 as profit after all expenses.
Operating Margin
Core operations generate 3.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.30 in profit for every $100 of shareholder equity.
ROA
Hub Group, Inc. generates $3.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hub Group, Inc. generates limited operating cash flow of $161.60M, signaling weaker underlying cash strength.
Free Cash Flow
Hub Group, Inc. produces free cash flow of $114.39M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.89 in free cash annually.
FCF Yield
HUBG converts 4.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HUBG Stacks Against Its Sector Peers
| Metric | HUBG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.76 | 26.49 | Better (Cheaper) |
| ROE | 6.30% | 1307.00% | Weak |
| Net Margin | 2.82% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.47 | 10.48 | Neutral |
| ROA | 3.62% | -1549793.00% (disorted) | Weak |
HUBG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hub Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
6.55%
Industry Style: Cyclical, Value, Infrastructure
GrowingFCF CAGR
-16.12%
Industry Style: Cyclical, Value, Infrastructure
Declining