April 24, 2025 a 11:31 am
JBHT: Dividend Analysis - J.B. Hunt Transport Services, Inc.
J.B. Hunt Transport Services, Inc., known for their consistent and moderate dividend payouts, has shown resilience within their sector. With 38 years of dividend history, this company offers a stable yield that appeals to long-term income investors. While growth is moderate, the company's strong financial fundamentals provide reassurance to shareholders. Their diversified service offerings and solid sector position underpin their dividend reliability.
📊 Overview
J.B. Hunt Transport Services operates in a cyclical sector but has managed to deliver reliable dividends amidst market changes. Their careful balance between reinvestment for growth and returning capital to shareholders is commendable.
| Key Metrics | Details |
|---|---|
| Sector | Transport |
| Dividend yield | 1.04% |
| Current dividend per share | 1.72 USD |
| Dividend history | 38 years |
| Last cut or suspension | None |
🗣️ Dividend History
Understanding J.B. Hunt's dividend history is crucial for analyzing their commitment to shareholder returns. The company has consistently increased dividends, reflecting its strong earnings power and financial health.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.44 |
| 2024 | 1.72 |
| 2023 | 1.68 |
| 2022 | 1.60 |
| 2021 | 1.18 |
📈 Dividend Growth
The dividend growth metrics are a testament to J.B. Hunt's operational success and strategic investments. Steady growth assures investors of future potential increases, showcasing management's commitment to enhancing shareholder value.
| Time | Growth |
|---|---|
| 3 years | 13.4% |
| 5 years | 10.6% |
The average dividend growth is 10.6% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratios indicate the sustainability of dividends. J.B. Hunt's EPS and FCF payout ratios suggest a prudent approach towards dividend distribution without compromising on growth and reinvestment.
| Key figure | Ratio |
|---|---|
| EPS-based | 30.75% |
| Free cash flow-based | 27.87% |
The payout ratios, at 30.75% (EPS) and 27.87% (FCF), reflect a healthy balance between rewarding shareholders and retaining earnings for strategic purposes.
⚠️ Cashflow & Capital Efficiency
Cash flow analysis is vital for understanding the liquidity and efficiency of capital utilization. J.B. Hunt's free cash flow yield and capital expenditure strategies indicate effective resource management and potential for future growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.55% | -0.57% | 1.30% |
| Earnings Yield | 3.28% | 3.53% | 5.34% |
| CAPEX to Operating Cash Flow | 58.35% | 106.75% | 86.71% |
| Stock-based Compensation to Revenue | 0.54% | 0.62% | 0.52% |
| Free Cash Flow / Operating Cash Flow Ratio | 41.65% | -6.75% | 13.29% |
The cash flow metrics reinforce J.B. Hunt's operational efficiency and its capability to finance dividends without resorting to debt.
📉 Balance Sheet & Leverage Analysis
A robust balance sheet reflects financial stability and resilience against market fluctuations. Key metrics like debt-to-equity and leverage ratios are crucial in assessing the company's financial health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity Ratio | 0.368 | 0.470 | 0.344 |
| Debt-to-Assets Ratio | 0.178 | 0.226 | 0.163 |
| Debt-to-Capital Ratio | 0.269 | 0.320 | 0.256 |
| Net Debt to EBITDA | 0.894 | 1.079 | 0.909 |
| Current Ratio | 1.055 | 1.172 | 1.382 |
| Quick Ratio | 1.031 | 1.148 | 1.356 |
| Financial Leverage | 2.071 | 2.081 | 2.111 |
The financial stability assessment shows manageable leverage levels, providing confidence in the company's capacity to meet its obligations and sustain growth.
✅ Fundamental Strength & Profitability
Profitability metrics highlight J.B. Hunt's efficiency in utilizing its assets and equity to generate returns, crucial for long-term sustainability and growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 14.22% | 17.75% | 26.44% |
| Return on Assets | 6.87% | 8.53% | 12.52% |
| Margins: Net | 4.72% | 5.68% | 6.54% |
| Margins: EBIT | 6.94% | 7.80% | 8.99% |
| Margins: EBITDA | 13.23% | 13.55% | 8.99% |
| Margins: Gross | 17.07% | 18.68% | 16.69% |
Profitability metrics demonstrate the company's ability to generate wealth from shareholders' investments, with a strong margin profile further enhancing its appeal.
📊 Price Development
📈 Dividend Scoring System
| Criteria | Score | Visualization |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Overall Score: 31/40
🗣️ Rating
J.B. Hunt Transport Services, Inc. offers a compelling dividend profile, marked by sustained growth and strong financial fundamentals. Investors seeking stable income and moderate growth potential may find J.B. Hunt a worthy addition to their portfolio. However, monitoring market influences and sectoral dynamics remains essential for long-term investment strategy.