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Hub Group (Hub Group) ROE %

: 7.06% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hub Group's annualized net income for the quarter that ended in Dec. 2023 was $115 Mil. Hub Group's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,632 Mil. Therefore, Hub Group's annualized ROE % for the quarter that ended in Dec. 2023 was 7.06%.

The historical rank and industry rank for Hub Group's ROE % or its related term are showing as below:

HUBG' s ROE % Range Over the Past 10 Years
Min: 6.59   Med: 11.54   Max: 24.28
Current: 10.3

During the past 13 years, Hub Group's highest ROE % was 24.28%. The lowest was 6.59%. And the median was 11.54%.

HUBG's ROE % is ranked better than
59.31% of 951 companies
in the Transportation industry
Industry Median: 8.44 vs HUBG: 10.30

Hub Group ROE % Historical Data

The historical data trend for Hub Group's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hub Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.42 6.59 13.73 24.28 10.36

Hub Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.35 15.17 11.38 7.52 7.06

Competitive Comparison

For the Integrated Freight & Logistics subindustry, Hub Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hub Group ROE % Distribution

For the Transportation industry and Industrials sector, Hub Group's ROE % distribution charts can be found below:

* The bar in red indicates where Hub Group's ROE % falls into.



Hub Group ROE % Calculation

Hub Group's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=167.528/( (1599.602+1634.645)/ 2 )
=167.528/1617.1235
=10.36 %

Hub Group's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=115.14/( (1629.068+1634.645)/ 2 )
=115.14/1631.8565
=7.06 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Hub Group  (NAS:HUBG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=115.14/1631.8565
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(115.14 / 3940.092)*(3940.092 / 2927.0895)*(2927.0895 / 1631.8565)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.92 %*1.3461*1.7937
=ROA %*Equity Multiplier
=3.93 %*1.7937
=7.06 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=115.14/1631.8565
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (115.14 / 119.108) * (119.108 / 112.664) * (112.664 / 3940.092) * (3940.092 / 2927.0895) * (2927.0895 / 1631.8565)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9667 * 1.0572 * 2.86 % * 1.3461 * 1.7937
=7.06 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Hub Group ROE % Related Terms

Thank you for viewing the detailed overview of Hub Group's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hub Group (Hub Group) Business Description

Traded in Other Exchanges
N/A
Address
2001 Hub Group Way, Oak Brook, IL, USA, 60523
Hub Group ranks among the largest providers of rail intermodal service. Roughly 60% of revenue comes from Hub's intermodal and transportation solutions division. ITS includes its flagship intermodal operations, which use the Class I rail carriers for the underlying line-haul movement of containers, as well as its dedicated truckload shipping unit. Asset light truckload and LTL brokerage makes up around 20%. The remaining 20% reflects Hub's logistics division, which provides outsourced transportation management, warehousing and fulfillment, and heavy-goods final mile delivery. Hub is somewhat acquisitive in that it often makes tuck-in acquisitions which expand its brokerage, logistics, and dedicated truckload offerings.
Executives
Dhruv Bansal officer: Chief Information Officer 2001 HUB GROUP WAY, OAK BROOK IL 60523
Lisa Dykstra director 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Kevin Beth officer: Chief Accounting Officer 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Thomas P. Lafrance officer: General Counsel C/O TRANSPORTATION SYSTEMS HOLDINGS INC., 901 MAIN AVENUE, NORWALK CT 06851
Michael E Flannery director
Gary Yablon director 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Phillip D Yeager officer: EVP Acct Mgmt & IML Op 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
David P Yeager director, officer: Vice Chairman and CEO 3050 HIGHLAND PARKWAY, STE 100, DOWNERS GROVA IL 60515
Vava Dimond officer: Chief Information Officer 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Charles R Reaves director 3050 HIGHLAND PARKWAY, STE 100, DOWNERS GROVA IL 60515
Geoffrey Demartino officer: Chief Financial Officer 100 THERMON DRIVE, SAN MARCOS TX 78666
Jenell Ross director 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Michele Mcdermott officer: Chief Human Resource Officer 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Nicholas Hannigan officer: EVP, Truck Brokerage 2000 CLEARWATER DRIVE, OAK BROOK IL 60523
Mary H Boosalis director 2000 CLEARWATER DRIVE, OAK BROOK IL 60523