JB Hunt (JBHT) AI Stock Analysis

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JB Hunt

(NASDAQ:JBHT)

65Neutral

JB Hunt's stock score reflects a stable financial position with strong cash flows but faces challenges in revenue growth and high capital expenditures. Technical indicators suggest caution with bearish momentum. While the company is highly valued, its strategic initiatives and operational successes offer potential upside, though significant short-term challenges remain.

Positive Factors

Cost Management

The company set actions to eliminate $100 million in structural costs.

Earnings

Analyst reiterates a Buy rating despite lowering the price objective to $189, indicating confidence in the company's future performance.

Intermodal Volume

Record intermodal volumes and a strong peak season were highlighted as positive aspects of the 4Q.

Negative Factors

Cost Pressure

The company has over 20% excess equipment in its Intermodal/Truck network, which contributes to cost pressure.

Earnings Projection

Analyst lowers the price objective to $170 on reduced 2025 EPS estimates due to near-term macro overhang and tariff uncertainty.

Pricing Pressure

Management indicated that tough pricing is locked in until the second half of 2025 renewals.

JB Hunt (JBHT) vs. S&P 500 (SPY)

Market Cap

$13.47B

Dividend Yield1.28%

Average Volume (3M)1.11M

Price to Earnings (P/E)24.2

Beta (1Y)1.03

Revenue Growth-5.79%

EPS Growth-20.32%

CountryUS

Employees33,646

SectorIndustrials

Sector Strength63

IndustryIntegrated Freight & Logistics

Share Statistics

EPS (TTM)5.56

Shares Outstanding100,008,210

10 Day Avg. Volume1,252,350

30 Day Avg. Volume1,105,647

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.23

Price to Cash Flow (P/CF)11.70

P/FCF Ratio27.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$179.79

Price Target Upside33.51% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering19

JB Hunt Business Overview & Revenue Model

Company DescriptionJ.B. Hunt Transport Services, Inc. provides surface transportation, delivery, and logistic services in North America. It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). The JBI segment offers intermodal freight solutions. It operates 104,973 pieces of company-owned trailing equipment; owns and maintains its chassis fleet of 85,649 units; and manages a fleet of 5,612 company-owned tractors, 582 independent contractor trucks, and 6,943 company drivers. The DCS segment designs, develops, and executes supply chain solutions that support various transportation networks. As of December 31, 2021, it operated 11,139 company-owned trucks, 544 customer-owned trucks, and 6 contractor trucks. The company also operates 21,069 owned pieces of trailing equipment and 7,753 customer-owned trailers. The ICS segment provides freight brokerage and transportation logistics solutions; flatbed, refrigerated, expedited, and less-than-truckload, as well as dry-van and intermodal solutions; an online multimodal marketplace; and logistics management for customers to outsource the transportation functions. The FMS segment offers delivery services through 1,272 company-owned trucks, 272 customer-owned trucks, and 19 independent contractor trucks; and 1,036 owned pieces of trailing equipment and 185 customer-owned trailers. The JBT segment provides dry-van freight services by utilizing tractors and trailers operating over roads and highways through 734 company-owned tractors and 11,172 company-owned trailers. It also transports or arranges for the transportation of freight, such as general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. The company was incorporated in 1961 and is headquartered in Lowell, Arkansas.

How the Company Makes MoneyJ.B. Hunt makes money through a diversified revenue model based on its major business segments. The intermodal segment, which involves the transportation of freight using multiple modes of transport (primarily rail and truck), is a significant revenue driver, capitalizing on partnerships with major rail carriers to provide cost-effective and environmentally friendly solutions. The dedicated contract services division offers tailor-made transportation solutions to customers, ensuring steady revenue through long-term contracts. Integrated capacity solutions and truckload services provide additional revenue streams by offering flexible freight capacity and direct trucking services. The company's earnings are also bolstered by strategic partnerships with railroads, technological investments for optimizing logistics, and a focus on expanding its service offerings to meet diverse customer needs.

JB Hunt Financial Statement Overview

Summary

JB Hunt's financial statements indicate a stable yet challenging financial environment. Income shows moderate profitability with some revenue volatility, while the balance sheet is robust with manageable leverage. Cash flow is strong, driven by solid operating cash flows, though high capital expenditures pose a challenge.

Income Statement

Positive

The income statement shows mixed results. Revenue growth has been inconsistent, with a decline in the latest year. Gross profit and net profit margins have been relatively stable, but EBIT margin shows some decline, indicating cost pressures. Overall, profitability metrics suggest moderate financial health.

Balance Sheet

Positive

The balance sheet reflects a stable equity position and moderate leverage. The debt-to-equity ratio has improved slightly over the years, indicating effective debt management. However, the return on equity has shown some fluctuation, reflecting varying profitability levels. Overall, the balance sheet suggests stable financial standing with manageable debt levels.

Cash Flow

Positive

Cash flow analysis indicates a strong operating cash flow, with positive growth in free cash flow over recent years. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to reported profits. However, capital expenditures remain high, impacting free cash flow growth. Overall, the cash flow statement reflects solid operational cash generation with some investment pressures.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
12.09B	12.83B	14.81B	12.17B	9.64B
	Gross Profit
2.06B	2.40B	2.47B	1.87B	1.45B
	EBIT
831.23M	993.20M	687.03M	488.44M	185.74M
	EBITDA
1.60B	1.74B	1.33B	1.05B	713.12M
	Net Income Common Stockholders
570.89M	728.29M	969.35M	760.81M	506.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.98M	53.34M	51.93M	355.55M	313.30M
	Total Assets
8.31B	8.54B	7.74B	6.79B	5.95B
	Total Debt
1.48B	1.93B	1.26B	1.30B	1.31B
	Net Debt
1.43B	1.88B	1.21B	945.68M	992.12M
	Total Liabilities
4.30B	4.43B	4.08B	3.67B	3.35B
	Stockholders Equity
4.01B	4.10B	3.67B	3.12B	2.60B
Cash Flow		Free Cash Flow
617.78M	-117.81M	236.09M	276.33M	384.31M
	Operating Cash Flow
1.48B	1.74B	1.78B	1.22B	1.12B
	Investing Cash Flow
-663.69M	-1.69B	-1.55B	-877.02M	-612.96M
	Financing Cash Flow
-825.83M	-57.99M	-530.43M	-304.63M	-231.60M

JB Hunt Technical Analysis

Technical Analysis Sentiment

Negative

Last Price134.66

Price Trends

50DMA

159.37

Negative

100DMA

169.50

Negative

200DMA

168.88

Negative

Market Momentum

MACD

-3.80

Negative

RSI

41.60

Neutral

STOCH

42.43

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBHT, the sentiment is Negative. The current price of 134.66 is below the 20-day moving average (MA) of 148.93, below the 50-day MA of 159.37, and below the 200-day MA of 168.88, indicating a bearish trend. The MACD of -3.80 indicates Negative momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 42.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JBHT.

JB Hunt Risk Analysis

JB Hunt disclosed 15 risk factors in its most recent earnings report. JB Hunt reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

JB Hunt Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPD	75 Outperform	$15.01B	19.07	35.12%	1.34%	13.98%	14.29%
FDX	74 Outperform	$50.34B	13.19	14.74%	2.63%	0.34%	-8.45%
CHRW	68 Neutral	$10.75B	23.57	29.65%	2.72%	0.73%	41.65%
LSTR	67 Neutral	$4.83B	24.78	20.03%	1.03%	-9.13%	-25.11%
XPO	66 Neutral	$10.73B	28.31	27.07%	―	4.22%	105.29%
JBHT	65 Neutral	$13.47B	24.24	14.06%	1.28%	-5.79%	-20.32%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%

* Industrials Sector Average

Performance Comparison

JBHT

JB Hunt

134.66

-58.28

-30.21%

CHRW

CH Robinson

90.94

20.68

29.43%

EXPD

Expeditors International

108.98

-7.89

-6.75%

XPO

91.55

-37.09

-28.83%

FDX

FedEx

210.12

-59.80

-22.15%

LSTR

Landstar System

136.64

-45.39

-24.94%

JB Hunt Earnings Call Summary

Earnings Call Date: Jan 16, 2025 | % Change Since: -27.49% | Next Earnings Date: Apr 15, 2025

Earnings Call Sentiment Neutral

J.B. Hunt's earnings call reflected strong operational achievements, particularly in Intermodal and Dedicated segments, and customer satisfaction with peak season execution. However, financial performance was hampered by revenue and income declines, significant charges, and ongoing cost pressures due to the freight recession. While the company is strategically positioned for future growth, short-term challenges persist, particularly in balancing costs and margins.

Highlights

Record Intermodal Volumes

J.B. Hunt achieved two consecutive quarters of record Intermodal volumes, with a 5% year-over-year increase in Q4 and the largest Intermodal volume month ever in October.

Strong Dedicated Truck Sales

The Dedicated segment sold nearly 440 trucks of new business in Q4 2024, marking one of the best truck sales years in company history.

Successful Peak Season Execution

J.B. Hunt successfully executed a strong peak season, particularly in Intermodal, maintaining high service levels and being recognized by customers for excellent service.

Improved Cost Control

The company reduced headcount by approximately 12% from peak levels and identified $60 million in aggregate costs related to excess capacity.

Positive Customer Feedback

Customers provided positive feedback on J.B. Hunt's execution during peak season, appreciating the company's strong value proposition around capacity and service.

Lowlights

Revenue and Income Decline

For Q4 2024, revenue declined 5%, and full-year revenue declined 6%. Operating income decreased by 16% for the year, and diluted EPS dropped by 20%.

Insurance and Asset Impairment Charges

Q4 2024 included $16 million in intangible asset impairment charges and $53.4 million in insurance-related charges, impacting operating income and EPS.

Continued Freight Recession Impact

The lingering freight recession weighed heavily on margins and returns on capital, with a deflationary pricing environment putting additional pressure on financial performance.

Intermodal Network Imbalances

Challenges in balancing the Intermodal network led to additional costs, impacting margins despite record volumes.

Cost Pressures

Inflationary cost pressures, particularly in insurance premiums and people costs, are expected to continue into 2025, necessitating cost adjustments.

Company Guidance

During J.B. Hunt's Q4 2024 earnings call, the company provided detailed guidance on several key metrics and strategic focuses for the upcoming year. Revenue for the fourth quarter declined by 5% compared to the previous year, while operating income increased by 2%, and diluted earnings per share rose by 4%. For the full year 2024, revenue decreased by 6%, operating income fell by 16%, and diluted EPS dropped by 20%. The company anticipates capital expenditures for 2025 to range between $700 million and $900 million, an increase from $674 million in 2024, mainly driven by growth initiatives in the Intermodal and Dedicated Contract Services segments. J.B. Hunt aims to improve margins and returns on capital by focusing on operational excellence, cost control, and leveraging its investments in people, technology, and capacity. Despite facing a deflationary rate environment and inflationary cost pressures, the company is optimistic about its growth potential and plans to address these challenges by repricing its services and scaling its operations.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.