Hub Group Stock Fair Value Calculation – HUB GROUP Reports 25.8% Decrease in Total Revenue for Q2 of 2023
August 25, 2023
🌥️Earnings Overview
HUB GROUP ($NASDAQ:HUBG) reported total revenue of USD 1040.5 million for the second quarter ended June 30 2023, a decrease of 25.8% from the year prior. Net income for the same period was USD 46.5 million, a decrease of 54.8% compared to the second quarter of the previous year. The results were released on July 27 2023.
Analysis – Hub Group Stock Fair Value Calculation
GoodWhale has conducted a thorough analysis of HUB GROUP’s financials and determined that the intrinsic value of a HUB GROUP share is around $83.6. This figure has been calculated using our proprietary Valuation Line, which takes into account the company’s historical performance, current market conditions, and macroeconomic trends in order to estimate an appropriate price for the stock. At the moment, HUB GROUP stock is being traded at $86.8, making it slightly overvalued by 3.8%. This could be an attractive entry point for potential investors, as there is a chance to buy into the stock at a reasonable price. However, it is important to stay vigilant and monitor the company’s performance closely, in order to determine when the ideal time to purchase is. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hub Group. More…
| Total Revenues | Net Income | Net Margin |
| 4.83k | 274.88 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hub Group. More…
| Operations | Investing | Financing |
| 478.81 | -261.91 | -173.01 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hub Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.8k | 1.19k | 50.37 |
Key Ratios Snapshot
Some of the financial key ratios for Hub Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.1% | 45.2% | 7.6% |
| FCF Margin | ROE | ROA |
| 5.8% | 14.0% | 8.2% |
Peers
The competition in the logistics industry is fierce. Hub Group Inc, Stonepath Group Inc, XPO Logistics Inc, and LHN Logistics Ltd are all fighting for market share. Each company has its own strengths and weaknesses, and they are constantly trying to one-up each other.
– Stonepath Group Inc ($OTCPK:SGRZ)
The company’s market cap is $4.38k and its ROE is -2.67%. The company is engaged in the business of providing logistics and transportation services.
– XPO Logistics Inc ($NYSE:XPO)
XPO Logistics Inc is a transportation and logistics company that operates in 32 countries. It has a market cap of 5.27B and a ROE of 42.78%. The company provides services such as truckload brokerage, intermodal, last mile, less-than-truckload, managed transportation, and warehousing.
Summary
Investors in HUB GROUP have cause for concern after the company reported its second quarter earnings for the fiscal year 2023. Total revenue decreased by 25.8% compared to the same period in the previous year, totaling USD 1040.5 million. Net income saw an even larger decrease of 54.8%, amounting to only USD 46.5 million. These results are a stark reminder of the challenges facing the company and its investors, and should be monitored closely in the coming quarters.
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