* Note: Prices are in Million (M) USD.
Description:
J.B. Hunt Transport Services, Inc. is an American transportation and logistics company based in Lowell, Arkansas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $51 M
Debt : $1,719 M
EBITDA : $1,564 M
Net Debt (Debt - Cash): $1,668 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Integrated shipping & logistics
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.82
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $105 M
Average Revenue: $7,063 M
Revenue Converted To Free Cash Flow (%): 1.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $12,087 M
Revenue 4 Years Ago (2020-12-31): $9,637 M
Last 5 Years Average Revenue Growth: 5%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $103 M
Share Count 5 Years Ago (2020-12-31): $107 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $6.85
Trailing 12-Month Earnings Per Share (EPS): $5.70
Average Earnings Per Share (EPS): $6.28
Dividend Per Share (DPS): $2
Payout Ratio: 28%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 30.4%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $137
52-Week Low: $122
Threshold Price (15% Above 52-Week Low): $140
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $14,118 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 28 points to above JB Hunt Transport Services Inc (JBHT) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• ROE Based PE
30.44 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 20 Years Avg P/E (23.59)
× EPS ($6.28) = $148.03.
Last 20 Years Avg PE
23.59, Fair Value PE
15, Industry Based PE
15, Growth Based PE
5.09, RCFC Based PE
1.48, ROE Based PE
30.44, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 7 values, average assigned is
15.46. Value-Trades has assined P/E value
15.46. An average (Current Year EPS + Next Year EPS) earning per share is
$6.275.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $97.00 (PE 15.46 × EPS $6.28)
Fair value using simple average PE × EPS: $148.03 (PE 23.59 × EPS $6.28)
Lesser of these two: $97.00
So the Final Fair Value is: $97.00
