DCF Tool

HUBG

Hub Group, Inc. – Postal Service
Hub Group is a world-class supply chain solutions provider that offers multi-modal transportation services throughout North America, including intermodal, truck brokerage, dedicated and logistics services. As a publicly traded company with approximately $4 billion in revenue, Hub Group's organization of over 4,800 employees delivers innovative, customer-focused solutions and industry leading service to help customers better control supply chains and their costs.
Analysis Results
Intrinsic Value $364.75
Latest Price $78.70
Relative Value 78% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 35.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 35.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 271 251
2023 367 315
2024 497 395
2025 673 495
2026 911 621
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15600 million. This corresponds to a present value of 9830 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2080 million. Adding in the terminal value gives a total present value of 11900 million.

There are presently 32.7 million outstanding shares, so the intrinsic value per share is 364.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 894,288,000
Current Cash 159,784,000
Current Liabilities 687,069,000
Current Debt 98,524,000
Non-Cash Working Capital (NCWC) 145,959,000
Change in NCWC 31,380,000
EBIT 238,457,000
Tax Provision 59,436,000
Depreciation and Amortization 130,629,000
Capital Expenditure -132,952,000
Unlevered Free Cash Flow 206,135,409
Current Assets 672,835,000
Current Cash 124,506,000
Current Liabilities 529,105,000
Current Debt 95,355,000
Non-Cash Working Capital (NCWC) 114,579,000
Change in NCWC 52,712,000
EBIT 105,826,000
Tax Provision 22,541,000
Depreciation and Amortization 123,679,000
Capital Expenditure -115,306,000
Unlevered Free Cash Flow 142,088,691
Current Assets 640,221,000
Current Cash 168,729,000
Current Liabilities 507,364,000
Current Debt 97,739,000
Non-Cash Working Capital (NCWC) 61,867,000
Change in NCWC -43,191,000
EBIT 152,420,000
Tax Provision 36,699,000
Depreciation and Amortization 116,887,000
Capital Expenditure -94,847,000
Unlevered Free Cash Flow 92,389,027
Current Assets 588,693,000
Current Cash 61,435,000
Current Liabilities 526,758,000
Current Debt 104,558,000
Non-Cash Working Capital (NCWC) 105,058,000
Change in NCWC -82,943,000
EBIT 124,919,000
Tax Provision 29,064,000
Depreciation and Amortization 83,910,000
Capital Expenditure -199,791,000
Unlevered Free Cash Flow -105,009,269
Current Assets 656,058,000
Current Cash 28,557,000
Current Liabilities 519,543,000
Current Debt 80,043,000
Non-Cash Working Capital (NCWC) 188,001,000
Change in NCWC 62,976,000
EBIT 96,551,000
Tax Provision -44,216,000
Depreciation and Amortization 62,173,000
Capital Expenditure -74,541,000
Unlevered Free Cash Flow 147,159,000
Current Assets 622,290,000
Current Cash 127,404,000
Current Liabilities 417,721,000
Current Debt 47,860,000
Non-Cash Working Capital (NCWC) 125,025,000
Change in NCWC 31,844,000
EBIT 123,834,000
Tax Provision 46,616,000
Depreciation and Amortization 44,712,000
Capital Expenditure -107,409,000
Unlevered Free Cash Flow 45,438,600
Current Assets 624,610,000
Current Cash 207,749,000
Current Liabilities 358,697,000
Current Debt 35,017,000
Non-Cash Working Capital (NCWC) 93,181,000
Change in NCWC -30,223,000
EBIT 117,030,000
Tax Provision 40,633,000
Depreciation and Amortization 37,042,000
Capital Expenditure -83,042,000
Unlevered Free Cash Flow -1,809,909
Current Assets 570,566,000
Current Cash 109,769,000
Current Liabilities 359,516,000
Current Debt 22,123,000
Non-Cash Working Capital (NCWC) 123,404,000
Change in NCWC 23,475,000
EBIT 106,101,000
Tax Provision 30,309,000
Depreciation and Amortization 29,380,000
Capital Expenditure -119,171,000
Unlevered Free Cash Flow 504,029
Current Assets 486,034,000
Current Cash 68,964,000
Current Liabilities 321,325,000
Current Debt 4,184,000
Non-Cash Working Capital (NCWC) 99,929,000
Change in NCWC -13,391,000
EBIT 116,651,000
Tax Provision 43,445,000
Depreciation and Amortization 21,302,000
Capital Expenditure -110,917,000
Unlevered Free Cash Flow -31,381,011
Current Assets 459,345,000
Current Cash 70,760,000
Current Liabilities 277,385,000
Current Debt 2,120,000
Non-Cash Working Capital (NCWC) 113,320,000
Change in NCWC 15,284,000
EBIT 112,360,000
Tax Provision 43,304,000
Depreciation and Amortization 21,575,000
Capital Expenditure -56,882,000
Unlevered Free Cash Flow 48,603,684

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