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JB Hunt Transport Services (JBHT)
NASDAQ:JBHT
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JB Hunt
(NASDAQ:JBHT)65Neutral
Positive Factors
Future Performance
Analyst reiterates a Buy rating despite lowering the price objective to $189, indicating confidence in the company's future performance.
Volume Trends
Encouraging volume trends were observed during the peak season with year-over-year increases in October, November, and December.
Negative Factors
Cost Pressure
The company has over 20% excess equipment in its Intermodal/Truck network, which contributes to cost pressure.
JB Hunt (JBHT) vs. S&P 500 (SPY)
Market Cap
$15.76B
Dividend Yield1.1%
Average Volume (3M)898.71K
Price to Earnings (P/E)28.4
Beta (1Y)1.11
Revenue Growth-5.79%
EPS Growth-20.32%
CountryUS
Employees34,718
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)5.56
Shares Outstanding100,008,210
10 Day Avg. Volume907,483
30 Day Avg. Volume898,706
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.31
Price to Cash Flow (P/CF)12.40
P/FCF Ratio28.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$189.06Price Target Upside19.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
JB Hunt Business Overview & Revenue Model
Company DescriptionJ.B. Hunt Transport Services, Inc. engages in the provision of logistics solutions. It operates through the following segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Truckload (JBT). The JBI segment offers intermodal freight operations for rail carriers. The DCS segment includes private fleet conversion and final-mile delivery services. The ICS segment provides a single-source logistics management for clients who intends to outsource their transportation activities. It offers flatbed, refrigerated, expedited, less-than-truckload, dry-van, and intermodal freight services. The JBT segment is responsible for full-load, dry-van freight that is transported via roads and highways. The company was founded by Johnnie Bryan Hunt, Sr. and Johnelle D. Hunt on August 10, 1961 and is headquartered in Lowell, AR.
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
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.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 12.24B | 0.00 | 12.83B | 14.81B | 12.17B | 9.64B | Gross Profit |
| 1.46B | 0.00 | 2.40B | 2.47B | 1.87B | 1.45B | EBIT |
| 834.74M | 0.00 | 993.20M | 687.03M | 488.44M | 185.74M | EBITDA |
| 1.58B | 0.00 | 1.74B | 1.33B | 1.05B | 713.12M | Net Income Common Stockholders |
| 568.97M | 0.00 | 728.29M | 969.35M | 760.81M | 506.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 0.00 | 53.34M | 51.93M | 355.55M | 313.30M | Total Assets |
| 0.00 | 0.00 | 8.54B | 7.74B | 6.79B | 5.95B | Total Debt |
| 0.00 | 0.00 | 1.93B | 1.26B | 1.30B | 1.31B | Net Debt |
| 0.00 | 0.00 | 1.88B | 1.21B | 945.68M | 992.12M | Total Liabilities |
| 0.00 | 0.00 | 4.43B | 4.08B | 3.67B | 3.35B | Stockholders Equity |
| 0.00 | 0.00 | 4.10B | 3.67B | 3.12B | 2.60B |
| Cash Flow | Free Cash Flow | ||||
| 435.60M | 617.78M | -117.81M | 236.09M | 276.33M | 384.31M | Operating Cash Flow |
| 1.38B | 1.48B | 1.74B | 1.78B | 1.22B | 1.12B | Investing Cash Flow |
| -757.82M | -663.69M | -1.69B | -1.55B | -877.02M | -612.96M | Financing Cash Flow |
| -577.90M | -825.83M | -57.99M | -530.43M | -304.63M | -231.60M |
JB Hunt Technical Analysis
Negative
157.62
Price Trends
170.15
Negative
175.45
Negative
169.84
Negative
Market Momentum
-3.59
Positive
34.93
Neutral
10.74
Positive
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 157.62 is below the 20-day moving average (MA) of 165.35, below the 50-day MA of 170.15, and below the 200-day MA of 169.84, indicating a bearish trend. The MACD of -3.59 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 10.74 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.31B | 20.67 | 36.44% | 1.23% | 13.98% | 14.29% | |
68 Neutral | $37.19B | 31.94 | 27.94% | 0.60% | -0.88% | -2.79% | |
67 Neutral | $5.46B | 28.02 | 20.15% | 0.91% | -9.13% | -25.11% | |
65 Neutral | $15.76B | 28.37 | 14.22% | 1.10% | -5.79% | -20.32% | |
63 Neutral | $11.67B | 25.49 | 27.04% | 2.45% | 0.73% | 41.65% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
57 Neutral | $4.45B | 38.20 | 3.92% | 1.46% | -3.79% | -50.29% |
* Industrials Sector Average
Performance Comparison
JBHT
JB Hunt
157.62
-40.21
-20.33%
CHRW
CH Robinson
98.35
27.74
39.29%
EXPD
Expeditors International
118.13
-1.43
-1.20%
LSTR
Landstar System
154.52
-25.15
-14.00%
ODFL
Old Dominion Freight
175.00
-41.85
-19.30%
SNDR
Schneider National
25.38
3.04
13.61%
JB Hunt Earnings Call Summary
Earnings Call Date: Jan 16, 2025 | % Change Since: -15.13% | Next Earnings Date: Apr 21, 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.