HUNT J B TRANSPORT SERVICES INC (JBHT) Stock Analysis
HUNT J B TRANSPORT SERVICES INC (JBHT) Stock Analysis
Overall Grade: F (Concerning)
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HUNT J B TRANSPORT SERVICES INC faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | 11.6% | Near cost of capital |
| FCF Margin | 7.9% | Healthy cash flow |
| Debt/Equity | 0.4x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is HUNT J B TRANSPORT SERVICES INC's Profitability and ROIC?
HUNT J B TRANSPORT SERVICES INC's return on invested capital of 11.6% is around industry norms.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.6% | Adequate | Adequate returns |
| Return on Equity (ROE) | 16.1% | Good | Efficient use of shareholder equity |
| Operating Margin | 7.2% | Adequate | Moderate operational efficiency |
How Strong is HUNT J B TRANSPORT SERVICES INC's Cash Flow Quality?
HUNT J B TRANSPORT SERVICES INC generated $947.6M in free cash flow over the trailing twelve months, representing a 7.9% margin. Cash earnings quality is strong, with operating cash flow exceeding net income by 2.8x.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | 7.9% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $947.6M | Good | Positive cash generation |
| OCF/Net Income | 2.8x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is HUNT J B TRANSPORT SERVICES INC's Financial Health?
HUNT J B TRANSPORT SERVICES INC's debt-to-equity ratio of 0.4x indicates conservative leverage.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 0.4x | Good | Conservative capital structure |
| Net Cash Position | $-1.4B | Warning | Net debt position |
Is HUNT J B TRANSPORT SERVICES INC Stock Overvalued or Undervalued?
HUNT J B TRANSPORT SERVICES INC trades at a P/E of 31.4x, representing a premium to the sector median of N/A. Free cash flow yield of 5.0% offers attractive cash returns.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | 31.4x | Adequate | Premium valuation |
| EV/Sales | 1.7x | Excellent | Attractive revenue multiple |
| FCF Yield | 5.0% | Good | Attractive cash return |
| Dividend Yield | 0.9% | Adequate | Growth focus over income |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.6% | Top 25% | 1.7x above |
| Free Cash Flow Margin | 7.9% | Top 50% | 1.8x above |
| Operating Margin | 7.2% | Top 50% | 1.1x above |
| Return on Equity (ROE) | 16.1% | Top 50% | 1.5x above |
| P/E Ratio | 31.4x | N/A | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: 11.6% (Adequate - Top 25% of sector (median: 6.7%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: 7.9% (Adequate - Top 50% of sector (median: 4.3%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 41.1% (Good)
P/E Ratio (Price-to-Earnings)
Stock price divided by earnings per share. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 15x | Attractively valued, potential opportunity |
| Good | 15x - 25x | Fair value for quality company |
| Adequate | 25x - 35x | Growth premium, justify with earnings growth |
| Warning | 35x - 50x | High expectations priced in |
| Red flag | > 50x or negative | Speculative valuation or losses |
Current: 31.4x (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: 5.0% (Good)
Frequently Asked Questions
Q: What is HUNT J B TRANSPORT SERVICES INC's Return on Invested Capital (ROIC)?
HUNT J B TRANSPORT SERVICES INC (JBHT) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.6%. This compares above the sector median of 6.7%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is HUNT J B TRANSPORT SERVICES INC's Free Cash Flow Margin?
HUNT J B TRANSPORT SERVICES INC (JBHT) has a free cash flow margin of 7.9%, generating $947.6 million in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is HUNT J B TRANSPORT SERVICES INC stock overvalued or undervalued?
HUNT J B TRANSPORT SERVICES INC (JBHT) trades at a P/E ratio of 31.4x, which is above the sector median of N/A. The EV/Sales multiple is 1.7x. Free cash flow yield is 5.0%, which is in line with market averages.
Q: Does HUNT J B TRANSPORT SERVICES INC pay a dividend?
HUNT J B TRANSPORT SERVICES INC (JBHT) currently pays a dividend yield of 0.9%. Including share buybacks, the total shareholder yield is 5.8%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is HUNT J B TRANSPORT SERVICES INC's revenue and earnings growth?
HUNT J B TRANSPORT SERVICES INC (JBHT) declined revenue by 0.7% year-over-year. Earnings per share increased by 10.1% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is HUNT J B TRANSPORT SERVICES INC buying back stock?
HUNT J B TRANSPORT SERVICES INC (JBHT) repurchased $923.3 million of stock over the trailing twelve months. This represents a buyback yield of 4.9%.
Q: How does HUNT J B TRANSPORT SERVICES INC compare to competitors in Transportation?
Compared to other companies in Transportation, HUNT J B TRANSPORT SERVICES INC (JBHT) shows: ROIC of 11.6% is above the sector median of 6.7% (Top 21%). FCF margin of 7.9% exceeds the sector median of 4.3% (Top 30% of sector). These rankings are based on MetricDuck's analysis of all Transportation companies with available SEC filings.
Q: What warning signs should I watch for with HUNT J B TRANSPORT SERVICES INC?
HUNT J B TRANSPORT SERVICES INC (JBHT) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-24. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.