Hub Group is a leading asset-light freight transportation management company providing intermodal, truck brokerage and logistics services. The company was founded in 1971 and is based in Oak Brook, Illinois.
HUBG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Hub Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hub Group Inc ranked in the 75th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 226.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for HUBG, they are:
In the past 5.52 years, Hub Group Inc has a compound free cash flow growth rate of 0.4%; that's higher than 78.7% of free cash flow generating stocks in the Industrials sector.
HUBG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 29.74% of tickers in our DCF set.
Hub Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 11.26. This coverage rate is greater than that of 78.49% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FIX, LXFR, ALG, RGP, and OBCI can be thought of as valuation peers to HUBG, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
OAK BROOK, Ill., Jan. 22, 2021 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) will hold a conference call at 5:00 p.m. Eastern Time on Thursday, February 4, 2021 to discuss its fourth quarter 2020 results. The results will be announced via press release after the market closes on the day of the call. Hosting the conference call will be Dave Yeager, Chairman and Chief Executive Officer. Also participating on the call will be Phil Yeager, President and Chief Operating Officer, and Geoff DeMartino, Executive Vice President, Chief Financial Officer and Treasurer. This call is being webcast and can be accessed through the Investors link on Hub Group’s web site at www.hubgroup.com. The webcast is listen-only. Those interested in participating in the question and answer session should foll...
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 817 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2020. […]
OAK BROOK, Ill., Dec. 17, 2020 (GLOBE NEWSWIRE) -- Hub Group (NASDAQ: HUBG), announced today that it has been awarded Supply & Demand Chain Executive’s (SDCE) Green Supply Chain Award and Food Logistics 100+ Top Software and Technology Providers. SDCE’s Green Supply Chain Award recognizes companies making green or sustainability a core part of their supply chain strategy and are working to achieve measurable sustainability goals within their own operations. The award also recognizes providers of supply chain solutions and services assisting their customers in achieving measurable sustainability goals.The annual Food Logistics 100+ Top Software and Technology Providers honors leading software and technology providers that ensure a safe, efficient and reliable global food and beverage su...
OAK BROOK, Ill., Dec. 15, 2020 (GLOBE NEWSWIRE) -- Hub Group (NASDAQ: HUBG) announced today that it has been awarded 2019 Intermodal Carrier of the Year by KBX Logistics/Georgia-Pacific. Hub Group received this distinguished award by providing exceptional on time performance (OTP), multiple modes and services and overall growth with KBX Logistics/Georgia-Pacific. “Hub Group had a great year in 2019 and of the intermodal providers with whom we work, Hub Group performed first in 2020 from a volume standpoint,” said Paul Snider, President of KBX Logistics during the KBX Annual Carrier Conference, which was virtually hosted earlier this week. “Through honest and open dialogue, we have been able to create even greater value in the supply chain and learn how to best address service issues. I...