J.B. Hunt Transport Services: Delivering Growth And Opportunities

Summary

• J.B. Hunt Transport Services, Inc. has gone a long way with its sustained growth and stability over the years.
• The company remains committed to ensuring consistent dividend growth while maintaining its adequacy to suffice it and further fortify its operations.
• The bearish stock price continues to move with moderate to high volatility. Despite the high PE Ratio, it still turns out to be undervalued as estimated using the Dividend Discount.
• It pulled off an impeccable performance during the first half despite the hindrances brought upon by the pandemic.

J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) remains a growing and stable transportation and logistics company with its unfaltering performance over the years. It proves its formidability as it continues to generate adequate amount of sales and earnings despite all the problems and restrictions caused by the pandemic. With its success in operations, it continues to put the investors in its top priorities as it raises the dividends consistently. These are the primary factors that contribute to the milestones of the company as one of the Fortune 500 Companies for eight consecutive years. However, the undervaluation of the bearish stock price despite the seemingly high PE Ratio is quite unclear whether it’s an illusion or a possible invitation to future gains for many investors.

Analyzing the Growing Financials of the Company

Operating Revenue and Operating Costs

The growing demand for its services mixed with strategic production has been the primary growth driver of its operating revenue over the years. From 2009 to 2019, its upward movement has been quick and consistent with an 11% yearly change on average. An impressive revenue growth happened in 2009-2011 when it changed by 19% in two consecutive years. From $3.2 billion it easily climbed up to $5.05 billion in just two years. Since then, it became slower but remained consistent. But in 2018, it had the largest growth when it jumped by 20% from $7.2 billion to $8.6 billion. Given this, one can see that the value has almost tripled with an uninterrupted increase from $3.2 billion to its most recent value at $9.15 billion.

Moreover, the company continued to prove its financial strength as it remained unscathed amidst the challenges it faced when the pandemic caused problems and restrictions. During the first quarter, the company generated $2.8 billion compared to $2.1 billion in the previous years. During the second

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.