J.B. Hunt Transport Rated High by Price/Sales Investor Model

In a recent report, J.B. Hunt Transport Services Inc received a commendable 70% rating from the Price/Sales Investor model. While the stock shows strong metrics in several areas, it does face challenges in long-term EPS growth and free cash flow.

Date: 13-09-2024

AI Rating: 6

The report highlights that J.B. Hunt Transport Services Inc (JBHT) has received a 70% rating using the Price/Sales Investor model based on Kenneth Fisher's strategy. This rating is reflective of a combination of strong fundamentals and favorable valuation metrics.

The analysis indicates several factors concerning JBHT's performance:

Price/Sales Ratio: The company has passed this criterion, suggesting positive market perception in terms of its sales relative to its stock price.
Total Debt/Equity Ratio: JBHT has a healthy ratio indicating that it is not excessively leveraged compared to its equity.
Price/Research Ratio: Also passed, which indicates reasonable valuation in relation to the research needed to assess its stock.
Long-Term EPS Growth Rate: This was deemed a failure, pointing towards potential concerns with future earnings growth prospect.
Free Cash Per Share: Another fail indicates that JBHT may be struggling with generating sufficient free cash flow.
Three-Year Average Net Profit Margin: A passing metric, suggesting profitability has been consistent over the past three years.

Investors looking at JBHT might view the strong performance in several key areas favorably, particularly the profit margin and metrics of debt management. However, the shortcomings in long-term earnings growth and free cash flow could be signals to exercise caution, as these are critical to sustaining future investments and market confidence.

As such, the overall sentiment is slightly positive due to the respectable rating amidst some concerning metrics. Investors may watch for improvements in the failed categories to assess future investment potential.

Stocks: JBHT