Reasons J B (NASDAQ:JBHT) can excite private investors

J B Accrued Expenses Turnover is comparatively stable at the moment as compared to the past year. J B reported Accrued Expenses Turnover of 25.55 in 2020. Operating Margin is likely to gain to 10.47 in 2021, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 1.3 B in 2021. While some baby boomers are getting worried about industrials space, it is reasonable to review J B Hunt. We will cover the possibilities of making J B into a steady grower in February. In this post, I will also go over a few different drivers affecting J B's products and services, and explain how it may impact J B private investors.
Published over a year ago
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Reviewed by Rifka Kats

The company's average rating is Buy from 17 analysts. Macroaxis provides trade advice on J B Hunt to complement and cross-verify current analyst consensus on J B. Our advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
The performance of JB Hunt Transport in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence JB Hunt's stock prices. When investing in JB Hunt, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, JBHT Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as JB Hunt carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of JB Hunt earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. JB Hunt dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. JBHT one year expected dividend income is about USD1.1 per share.
At this time, JB Hunt's Dividends Paid is comparatively stable compared to the past year. Dividend Payout Ratio is likely to gain to 0.28 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
Last ReportedProjected for Next Year
Dividends Paid173.9 M182.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.24  0.28 
Dividend Paid And Capex Coverage Ratio(1.03)(1.08)
Investing in dividend-paying stocks, such as JB Hunt Transport is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in JB Hunt must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for JB Hunt. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is JB Hunt's Liquidity

JB Hunt financial leverage refers to using borrowed capital as a funding source to finance JB Hunt Transport ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JB Hunt financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to JB Hunt's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of JB Hunt's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between JB Hunt's total debt and its cash.

What do experts say about JBHT?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

What is the case for JB Hunt Investors

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. J B has an asset utilization ratio of 709.02 percent. This implies that the company is making $7.09 for each dollar of assets. An increasing asset utilization means that J B Hunt is more efficient with each dollar of assets it utilizes for everyday operations.
 2018 2019 2020 2021 (projected)
Receivables1.33 B1.24 B1.12 B912.24 M
Inventories21.98 M21.11 M19 M19.3 M

J B is projected to stay under $155 in February

Total Risk Alpha just dropped to -0.12, may call for upcoming price decrease. J B Hunt currently demonstrates below-verage downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.15. However, we do advice investors to further question J B Hunt expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Whereas other entities under the integrated freight & logistics industry are still a bit expensive, J B may offer a potential longer-term growth to private investors. In closing, as of the 18th of January 2021, we believe J B is currently overvalued. It moves indifferently to market moves and projects very small odds of distress in the next two years. Our ongoing 30 days buy-hold-sell advice on the firm is Cautious Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of JB Hunt Transport. Please refer to our Terms of Use for any information regarding our disclosure principles.

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