What’s Happening With JBHT Stock?

April 16th, 2025 by Trefis Team

Following its Q1 results announcement, JB Hunt Transport Services (NASDAQ:JBHT) stock is trading lower on Wednesday, April 16th. While the trucking company’s first-quarter revenue of $2.92 billion and earnings per share (EPS) of $1.17 both slightly exceeded analysts’ consensus estimates of $2.91 billion in sales and $1.15 EPS, respectively, these figures represent a year-over-year decline. Investors reacted negatively to management’s commentary regarding the impact of tariffs on customer demand and the company’s increasing costs.

We believe JBHT stock, currently trading around $125, presents a risky investment proposition. However, it is precisely these risks that have contributed to its current low valuation, potentially creating an opportunity for investors willing to accept higher volatility.

Our conclusion stems from a comparative analysis of JBHT’s current valuation with its operating performance in recent years, alongside an examination of its current and historical financial condition. Our assessment of J.B. Hunt based on key parameters such as Growth, Profitability, Financial Stability, and Downturn Resilience highlights weaknesses in the company’s operating performance and financial condition, as further elaborated below.

How Does JB Hunt Transport Services’ Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, JBHT stock looks slightly cheap compared to the broader market.

  • JB Hunt Transport Services has a price-to-sales (P/S) ratio of 1.1 vs. a figure of 2.8 for the S&P 500

How Have JB Hunt Transport Services’ Revenues Grown Over Recent Years?

JB Hunt Transport Services’ Revenues have seen a decline over recent years.

  • JB Hunt Transport Services has seen its top line grow at an average rate of 0.9% over the last 3 years (vs. increase of 6.2% for S&P 500)
  • Its revenues have declined 5.8% from $13 Bil to $12 Bil in the last 12 months (vs. growth of 5.3% for S&P 500)
  • Also, its quarterly revenues decreased 4.8% to $3.1 Bil in the most recent quarter from $3.3 Bil a year ago (vs. 4.9% improvement for S&P 500)

How Profitable Is JB Hunt Transport Services?

JB Hunt Transport Services’ profit margins are much worse than most companies in the Trefis coverage universe.

Does JB Hunt Transport Services Look Financially Stable?

JB Hunt Transport Services’ balance sheet looks weak.

  • JB Hunt Transport Services’ Debt figure was $1.5 Bil at the end of the most recent quarter, while its market capitalization is $14 Bil (as of 4/15/2025). This implies a strong Debt-to-Equity Ratio of 10.6% (vs. 21.5% for S&P 500). [Note: A lower Debt-to-Equity Ratio is desirable]
  • Cash (including cash equivalents) makes up $47 Mil of the $8.3 Bil in Total Assets for JB Hunt Transport Services.  This yields a very poor Cash-to-Assets Ratio of 0.6% (vs. 15.0% for S&P 500)

How Resilient Is JBHT Stock During A Downturn?

JBHT stock has seen an impact that was slightly better than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on JBHT stock? Our dashboard How Low Can JB Hunt Transport Services Stock Go In A Market Crash? has a detailed analysis of how the stock performed during and after previous market crashes.

Inflation Shock (2022)

  • JBHT stock fell 29.0% from a high of $218.06 on 16 March 2022 to $154.88 on 17 June 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 15 February 2024
  • Since then, the stock has increased to a high of $218.78 on 15 February 2024 and currently trades at around $123

 

Covid Pandemic (2020)

  • JBHT stock fell 37.1% from a high of $119.76 on 16 January 2020 to $75.38 on 16 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 5 June 2020

 

Global Financial Crisis (2008)

  • JBHT stock fell 53.5% from a high of $39.95 on 8 August 2008 to $18.59 on 9 March 2009, vs. a peak-to-trough decline of 56.8% for the S&P 500
  • The stock fully recovered to its pre-Crisis peak by 7 December 2010

 

Putting All The Pieces Together: What It Means For JBHT Stock

In summary, JB Hunt Transport Services’ performance across the parameters detailed above are as follows:

  • Growth: Weak
  • Profitability: Very Weak
  • Financial Stability: Weak
  • Downturn Resilience: Neutral
  • Overall: Weak

While JBHT stock has demonstrated weakness in the aforementioned parameters, it has historically shown a degree of resilience during economic downturns. Furthermore, its current valuation appears attractive, likely reflecting the risks associated with its weaker performance and the potential impact of near-term tariffs. Considering this balance, we believe JBHT presents a good buying opportunity.

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