10Y annualized return is
positive but below market average
at 4.1% per year
JBHT has met or exceeded earnings expectations in
few
recent quarters (2/10)
Reasonable Price-to-Sales Ratio
Strong Return on Equity
Decent Gross Profit Margin
Low Debt-to-Equity Ratio
Strong Interest Coverage
🏆 Strong Service and Safety Performance
💼 Diverse Business Segments
🚀 Strategic Investments for Growth
🌱 Potential for Volume Growth
🔧 Focus on Cost Control and Operational Excellence
High Price-to-Earnings Ratio
Low Net Profit Margin
Low Cash Ratio
📉 Margin Pressure
❓ Uncertain Market Dynamics
Overall, J.B. Hunt demonstrates strong business quality through its diverse operations and commitment to safety and service, but faces challenges in margin recovery and market uncertainties. Future prospects appear positive with potential for volume growth and continued emphasis on operational excellence.
Analysis Date: January 16, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
J.B. Hunt Transport Services, Inc. is a company that helps move goods across North America. They provide different types of transportation services, like truck deliveries and logistics support, which means they help businesses plan how to get their products to customers. They operate a large fleet of trucks and trailers to carry a wide range of items, from food to electronics. Essentially, J.B. Hunt makes it easier for companies to transport their products to where they need to go.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
J.B. Hunt's NASDAQ: JBHT stock share price came under pressure with the threat of tariffs and their economic impact and fell to a new low following it...
J.B. Hunt Transport Services, Inc. JBHT trades higher Thursday. This comes after a lackluster earnings report.
I maintain a hold rating on JBHT due to ongoing margin pressures, mixed bid season outcomes, and macro uncertainties around tariffs affecting demand v...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$144.20
Current Market Price: $132.10
IV/P Ratio: 1.09x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
8.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for JBHT
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (24.05)
P/B ratio ≤ 1.5 (3.42)
Current ratio ≥ 2.0 (1.06x)
Long-term debt < Net current assets (10.52x)
Margin of safety (8.0%)
JBHT does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
11.03%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
13.82%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
4.72%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The return on equity (ROE) of 14.05% indicates that the company is effectively using its equity to generate profits. This is a positive sign of management efficiency.
A gross profit margin of 13.82% reflects the company's ability to manage its production costs effectively relative to its revenue.
The net profit margin of 4.72% suggests that the company retains a smaller portion of revenue as profit after all expenses, which may indicate challenges in cost management or pricing power.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.37x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.06x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With a debt-to-equity ratio of 0.37, the company has a relatively low level of debt compared to its equity, indicating lower financial risk.
An interest coverage ratio of 10.61 indicates that the company earns significantly more than it needs to cover its interest expenses, showcasing strong financial health.
The cash ratio of 0.03 indicates that the company has very little cash available to cover its short-term liabilities, which may pose liquidity risks.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
J.B. Hunt continues to demonstrate exceptional service levels and safety performance, highlighted by two consecutive years of record-setting safety metrics. This strong performance enhances customer satisfaction and loyalty, positioning the company favorably in the competitive landscape.
The company operates through multiple segments, including Intermodal, Dedicated Contract Services, and Final Mile, which provide a diversified revenue stream. This diversification allows J.B. Hunt to mitigate risks associated with downturns in specific markets.
J.B. Hunt has made significant investments in technology, personnel, and capacity, including the acquisition of Intermodal assets from Walmart, that are expected to enhance future earnings potential and operational efficiency.
Despite a strong performance in service, the company is facing challenges with margins due to a deflationary pricing environment and inflationary cost pressures, which have resulted in declining operating income and diluted earnings per share.
The company is optimistic about future volume growth, particularly in the Intermodal segment, which has already reached record levels. They see opportunities in various markets, including the East Coast and Mexico, suggesting a robust pipeline for growth.
J.B. Hunt has a strong focus on cost control and operational excellence, which are expected to improve margins and financial performance as the economy recovers from the freight recession.
Market dynamics remain unpredictable, particularly concerning inflationary pressures on costs and the overall freight environment, which could hinder the company's growth and margin recovery efforts.