HUBG

Hub Group, Inc. - Ordinary Shares - Class A

Industrial/Transportation


Presented:01/10/2024
Price:$43.86
Cap:$2.79B
Current Price:$44.26
Cap:$2.75B

Presented

Date01/10/2024
Price$43.86
Market Cap$2.79B
Ent Value$2.63B
P/E Ratio13.08x
Book Value$26.00
Div Yield0%
Shares O/S63.53M
Ave Daily Vol571,688
Short Int1.93%

Current

Price$44.26
Market Cap$2.75B
Hub Group, Inc. engages in the provision of multi-modal transportation and logistics solutions. Its solutions include intermodal transportation, truck brokerage, asset trucking, and dedicated trucking. It serves the retail, e-commerce, paper, chemical, healthcare, glass, private equity, and automotive industries. The company was founded by Phillip C. Yeager in 1971 and is headquartered in Oak Brook, IL.

Please note, this stock split on 01/29/2024 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $87.71.
Publicly traded companies mentioned herein: CH Robinson Worldwide Inc (CHRW), Hub Group Inc (HUBG)

Highlights

The presenter is long shares of Hub Group Inc (HUBG), the second largest intermodal provider in the US. Its business mix is ~60% intermodal and ~40% logistics, the latter of which he views as more diversified than CH Robinson given it offers truck brokerage, LTL brokerage, warehousing, and final mile. Bears argue that the stock is expensive at $87 per share, citing consensus 2023 EPS of $5.35 (yet to report Q4) and the current ~$4 run rate (most recently printed $0.97) compared to peak earnings of $10.64 in 2022 when the stock traded at similar levels. However, he sees reasons for optimism over the short, medium, and long terms, underwriting normalized earnings of $8 – $9 per share for upside to $120 – $140 per share as the cycle turns and management continues deploying capital.

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Idea Discussion

Commentor 1 - 2 weeks ago

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