Unveiling the Investment Potential of JB Hunt Transport Services Inc (JBHT): A Comprehensive ...
JB Hunt Transport Services Inc (NASDAQ:JBHT) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $195.88, JB Hunt Transport Services Inc has witnessed a daily gain of 0.78%, marked against a three-month change of 10.71%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that JB Hunt Transport Services Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
JB Hunt Transport Services Inc has been assigned the following ranks:
Financial strength rank: 8/10
Profitability rank: 9/10
Growth rank: 10/10
GF Value rank: 5/10
Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high growth rank and a slightly lower GF Value rank, GuruFocus assigned JB Hunt Transport Services Inc the GF Score of 95 out of 100, which signals the highest outperformance potential.
Overview of JB Hunt Transport Services Inc
JB Hunt Transport Services Inc, with a market cap of $20.24 billion and sales of $13.85 billion, ranks among the top surface transportation companies in North America by revenue. Its primary operating segments are intermodal delivery, which uses the Class I rail carriers for the underlying line-haul movement of its owned containers (47% of sales in 2022); dedicated trucking services that provide customer-specific fleet needs (23%); for-hire truckload (7%); heavy goods final-mile delivery (7%), and asset-light truck brokerage (16%). The company's operating margin stands at 8.61%.
Financial Strength Analysis
According to the Financial Strength rating, JB Hunt Transport Services Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for JB Hunt Transport Services Inc stands impressively at 21.6, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 6.08, JB Hunt Transport Services Inc exhibits a strong defense against financial distress. With a favorable Debt-to-Revenue ratio of 0.1, JB Hunt Transport Services Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows JB Hunt Transport Services Inc's impressive standing among its peers in generating profit. JB Hunt Transport Services Inc Operating Margin has increased (13.70%) over the past five years. Furthermore, the company's Gross Margin has seen a consistent rise over the past five years. JB Hunt Transport Services Inc's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, JB Hunt Transport Services Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 18.5%, which outperforms better than 78.38% of 911 companies in the Transportation industry. Moreover, JB Hunt Transport Services Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years.
Conclusion
Given the company's strong financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights JB Hunt Transport Services Inc's unparalleled position for potential outperformance. This analysis suggests that JB Hunt Transport Services Inc is a promising investment opportunity for value investors seeking robust returns.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
