One-glance verdict
Undervalued
$32.26 our estimate vs market $30.34
Wall Street consensus: $40.08 (24.2% higher than our fair-value estimate)
6% below our estimate, below the bear case
Fundamentals snapshot
Hub Group, Inc.
HUBG · NMS · Industrials · Integrated Freight & Logistics
Current price
$30.34
52-week range
$29.92 - $53.26
Market cap
$1.86B
Balance sheet
Healthy
9.61x Adequate
Net debt $379.06M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 6.2% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Net debt grew 152.5% over 3 years.
- Risk Stock trades 2.8% above its 5-year average P/E.
What this company does
Hub Group, Inc.
Hub Group helps other businesses manage their supply chain (the entire journey of a product from the factory to the customer) by handling the transportation of their goods. The company makes money by charging fees to move products across North America using its own large fleet of trucks, trains, and shipping containers. This service is essential for industries like retail and consumer goods, as it's how products get from warehouses to store shelves.
How the company got here
Hub Group was started in 1971 by Phillip and Joyce Yeager with $10,000 in a small office above a flower shop. Initially, the company acted as an agent, arranging for goods to be moved using a combination of trucks and trains, a service known as intermodal transportation. The company grew steadily, and in 1996, it became a publicly traded company on the stock market. Over the years, Hub Group has expanded its services by acquiring other companies, adding dedicated trucking, warehousing, and other logistics services to its offerings. Today, it is a large transportation and logistics management company in North America, still led by the Yeager family.
What it actually does
Think of Hub Group as a travel agent for freight. The company helps other businesses move their products from one place to another across North America using trucks, trains, and ships. They handle the complexities of shipping, such as finding the best routes, managing the transportation, and tracking the shipments. Hub Group serves a wide range of industries, including retail stores, companies that make consumer products, and car manufacturers.
Intermodal and Transportation Solutions (ITS)
This is the company's largest business area and includes two main services: intermodal and dedicated trucking. Intermodal transportation involves moving goods in the same container using multiple forms of transportation, usually trains for the long haul and trucks for the final delivery, which can be more fuel-efficient. Dedicated trucking means Hub Group provides trucks and drivers to a single customer for their exclusive use, acting like that customer's private fleet. This segment makes up a significant portion of the company's revenue.
Logistics
This part of the business focuses on managing the entire supply chain (the journey of a product from the factory to the consumer) for its customers. This includes services like arranging for truck transportation with other carriers, a practice known as freight brokerage, as well as warehousing, and final mile delivery (the last step of getting a product to a customer's home or business). They also offer solutions to help businesses make their shipping more efficient and less costly. While smaller than the ITS segment, it provides a wide range of services to help customers manage their transportation needs.
What management is betting on now
Hub Group is currently focused on improving its profitability through a new efficiency program. This involves better management of pricing across its services, consolidating its warehouse space, and increasing the productivity of its drivers and warehouse staff. The company is also investing in technology to provide customers with better visibility and real-time updates on their shipments. By focusing on cost reduction and leveraging technology, management aims to navigate market challenges and drive future growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2023 Q4
$65.08M
FY2024 Q1
$62.99M
FY2024 Q2
$56.22M
FY2024 Q3
$31.39M
FY2024 Q4
$-7.02M
FY2025 Q1
$50.84M
FY2025 Q2
$50.21M
FY2025 Q3
$19.39M
Revenue
$934.50M
Net income
$28.55M
Diluted EPS
0.47
Operating cash flow
$28.10M
Free cash flow
$19.39M
Fetching…
Sources
Revenue
$905.65M
Net income
$25.25M
Diluted EPS
0.42
Operating cash flow
$61.50M
Free cash flow
$50.21M
Fetching…
Sources
Revenue
$915.22M
Net income
$26.85M
Diluted EPS
0.44
Operating cash flow
$70.03M
Free cash flow
$50.84M
Fetching…
Sources
Revenue
$973.51M
Net income
$24.32M
Diluted EPS
0.40
Operating cash flow
$604.00K
Free cash flow
$-7.02M
Fetching…
Sources
Revenue
$986.89M
Net income
$23.60M
Diluted EPS
0.39
Operating cash flow
$43.35M
Free cash flow
$31.39M
Fetching…
Sources
Revenue
$986.50M
Net income
$29.02M
Diluted EPS
0.47
Operating cash flow
$69.95M
Free cash flow
$56.22M
Fetching…
Sources
Revenue
$999.49M
Net income
$27.05M
Diluted EPS
0.44
Operating cash flow
$80.52M
Free cash flow
$62.99M
Fetching…
Sources
Revenue
$985.02M
Net income
$28.78M
Diluted EPS
-1.67
Operating cash flow
$99.48M
Free cash flow
$65.08M
Fetching…
Sources
Is it cheap or expensive?
Fair value $32.26 vs current price $30.34
Wall Street consensus is the average analyst price target: $40.08 (24.2% higher than our fair-value estimate).
Our most-likely fair value is $32.26 a share — about 6.3% above today's price of $30.34, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $379.1M. Interest coverage 9.6x.
Net debt
$379.06M
Interest coverage
9.61x
Hub Group, Inc.'s profit covers its interest bill about 9.6 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
HUBG
BASELINE
Hub Group, Inc.
Total debt $498.76M Interest coverage 9.61x This is the baseline the peer rows are being compared against.
Total debt $396.10M Interest coverage 5.00x -48% vs HUBG Carries about 1.9x less debt cushion than HUBG.
Total debt $139.10M Interest coverage 46.98x +389% vs HUBG Carries about 4.9x more debt cushion than HUBG.
Total debt $945.79M Interest coverage 1.43x -85% vs HUBG Carries about 6.7x less debt cushion than HUBG.
Total debt $1.40B Interest coverage 11.50x +20% vs HUBG Carries about 1.2x more debt cushion than HUBG.
Total debt $2.69B Interest coverage 1.94x -80% vs HUBG Carries about 4.9x less debt cushion than HUBG.
What you should know
The case for and against HUBG
3 Rewards
3 Risks
Rewards
-
Returns 6.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Trades at 17.4x P/E vs peer median 45.6x (61.8% cheaper).
Risks
-
Net debt grew 152.5% over 3 years.
-
Stock trades 2.8% above its 5-year average P/E.
-
Operating margin compressed from 5.2% to 4.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.44x
Forward P/E
13.86x
P/B
1.09x
P/S
0.50x
EV/EBITDA
6.87x
PEG ratio
1.85x
Profitability
How much profit each dollar creates
Gross margin
11.4%
Operating margin
4.2%
Net margin
2.8%
ROE
6.2%
ROA
3.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.28x
Current ratio
1.47x
Quick ratio
1.36x
Total debt
$498.76M
Total cash
$119.70M
Growth
How the business has been compounding
Revenue TTM
$3.73B
Revenue 5Y CAGR
3.1%
EPS TTM
1.74
EPS 5Y CAGR
-12.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$160.24M
Free CF TTM
$143.57M
FCF margin
3.9%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
28.7%
Last ex-div date
2026-09-21