- Hub Group benefited from higher intermodal volumes and robust spot truck brokerage pricing in Q4, but higher purchased transportation costs took their toll.
- In addition to higher rail and drayage charges, HUBG is dealing with a snarled, inefficient logistics chain across the U.S., raising costs in the near term and pushing out GM leverage.
- I like the move into last-mile logistics (the NSD acquisition), and I expect additional bolt-on deals.
- Between discounted cash flow (with mid-to-high single-digit long-term FCF growth) and EV/EBITDA, I believe HUBG is undervalued below the mid-$60s.
For further details see:
Hub Group Undervalued With An Improving Growth Outlook