Intrinsic value of J.B. Hunt Transport Services - JBHT

Previous Close

$91.56

  Intrinsic Value

$70.20

stock screener

  Rating & Target

sell

-23%

  Value-price divergence*

+39%

Previous close

$91.56

 
Intrinsic value

$70.20

 
Up/down potential

-23%

 
Rating

sell

 
Value-price divergence*

+39%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of JBHT stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 10.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  5.93
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
Revenue, $m
  6,555
  6,981
  7,424
  7,886
  8,366
  8,867
  9,389
  9,933
  10,501
  11,094
  11,713
  12,360
  13,036
  13,743
  14,483
  15,257
  16,067
  16,915
  17,803
  18,733
  19,707
  20,729
  21,799
  22,921
  24,098
  25,332
  26,625
  27,983
  29,406
  30,899
  32,466
Variable operating expenses, $m
 
  6,171
  6,563
  6,971
  7,396
  7,838
  8,300
  8,781
  9,283
  9,807
  10,354
  10,926
  11,524
  12,149
  12,803
  13,487
  14,203
  14,952
  15,738
  16,560
  17,421
  18,324
  19,270
  20,262
  21,303
  22,393
  23,537
  24,737
  25,995
  27,315
  28,700
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  5,834
  6,171
  6,563
  6,971
  7,396
  7,838
  8,300
  8,781
  9,283
  9,807
  10,354
  10,926
  11,524
  12,149
  12,803
  13,487
  14,203
  14,952
  15,738
  16,560
  17,421
  18,324
  19,270
  20,262
  21,303
  22,393
  23,537
  24,737
  25,995
  27,315
  28,700
Operating income, $m
  721
  810
  861
  915
  970
  1,029
  1,089
  1,152
  1,218
  1,287
  1,359
  1,434
  1,512
  1,594
  1,680
  1,770
  1,864
  1,962
  2,065
  2,173
  2,286
  2,405
  2,529
  2,659
  2,795
  2,938
  3,089
  3,246
  3,411
  3,584
  3,766
EBITDA, $m
  1,083
  1,104
  1,174
  1,247
  1,323
  1,402
  1,484
  1,570
  1,660
  1,754
  1,852
  1,954
  2,061
  2,173
  2,290
  2,412
  2,540
  2,674
  2,815
  2,962
  3,116
  3,277
  3,446
  3,624
  3,810
  4,005
  4,209
  4,424
  4,649
  4,885
  5,133
Interest expense (income), $m
  25
  35
  40
  46
  52
  58
  64
  71
  78
  85
  93
  101
  109
  118
  127
  137
  147
  157
  168
  180
  192
  204
  217
  231
  246
  261
  277
  293
  311
  329
  349
Earnings before tax, $m
  696
  775
  821
  869
  919
  971
  1,025
  1,081
  1,140
  1,201
  1,266
  1,333
  1,403
  1,476
  1,553
  1,633
  1,717
  1,805
  1,897
  1,993
  2,094
  2,200
  2,311
  2,428
  2,550
  2,678
  2,812
  2,953
  3,100
  3,255
  3,418
Tax expense, $m
  264
  209
  222
  235
  248
  262
  277
  292
  308
  324
  342
  360
  379
  399
  419
  441
  464
  487
  512
  538
  566
  594
  624
  655
  688
  723
  759
  797
  837
  879
  923
Net income, $m
  432
  566
  599
  634
  671
  709
  748
  789
  832
  877
  924
  973
  1,024
  1,078
  1,134
  1,192
  1,253
  1,318
  1,385
  1,455
  1,529
  1,606
  1,687
  1,772
  1,861
  1,955
  2,053
  2,155
  2,263
  2,376
  2,495

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  6
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,829
  4,071
  4,329
  4,598
  4,878
  5,170
  5,475
  5,792
  6,123
  6,469
  6,830
  7,207
  7,601
  8,014
  8,445
  8,896
  9,368
  9,863
  10,381
  10,923
  11,491
  12,087
  12,711
  13,365
  14,051
  14,771
  15,525
  16,316
  17,146
  18,017
  18,931
Adjusted assets (=assets-cash), $m
  3,823
  4,071
  4,329
  4,598
  4,878
  5,170
  5,475
  5,792
  6,123
  6,469
  6,830
  7,207
  7,601
  8,014
  8,445
  8,896
  9,368
  9,863
  10,381
  10,923
  11,491
  12,087
  12,711
  13,365
  14,051
  14,771
  15,525
  16,316
  17,146
  18,017
  18,931
Revenue / Adjusted assets
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
  1.715
Average production assets, $m
  2,760
  2,939
  3,126
  3,320
  3,522
  3,733
  3,953
  4,182
  4,421
  4,671
  4,931
  5,204
  5,488
  5,786
  6,097
  6,423
  6,764
  7,121
  7,495
  7,887
  8,297
  8,727
  9,177
  9,650
  10,145
  10,665
  11,209
  11,781
  12,380
  13,009
  13,668
Working capital, $m
  373
  391
  416
  442
  469
  497
  526
  556
  588
  621
  656
  692
  730
  770
  811
  854
  900
  947
  997
  1,049
  1,104
  1,161
  1,221
  1,284
  1,349
  1,419
  1,491
  1,567
  1,647
  1,730
  1,818
Total debt, $m
  986
  1,144
  1,307
  1,477
  1,654
  1,839
  2,031
  2,231
  2,441
  2,659
  2,887
  3,126
  3,375
  3,636
  3,908
  4,193
  4,492
  4,804
  5,131
  5,474
  5,833
  6,210
  6,604
  7,018
  7,451
  7,906
  8,383
  8,883
  9,408
  9,958
  10,535
Total liabilities, $m
  2,415
  2,573
  2,736
  2,906
  3,083
  3,268
  3,460
  3,660
  3,870
  4,088
  4,316
  4,555
  4,804
  5,065
  5,337
  5,622
  5,921
  6,233
  6,560
  6,903
  7,262
  7,639
  8,033
  8,447
  8,880
  9,335
  9,812
  10,312
  10,837
  11,387
  11,964
Total equity, $m
  1,414
  1,498
  1,593
  1,692
  1,795
  1,903
  2,015
  2,131
  2,253
  2,381
  2,513
  2,652
  2,797
  2,949
  3,108
  3,274
  3,448
  3,629
  3,820
  4,020
  4,229
  4,448
  4,678
  4,918
  5,171
  5,436
  5,713
  6,004
  6,310
  6,630
  6,967
Total liabilities and equity, $m
  3,829
  4,071
  4,329
  4,598
  4,878
  5,171
  5,475
  5,791
  6,123
  6,469
  6,829
  7,207
  7,601
  8,014
  8,445
  8,896
  9,369
  9,862
  10,380
  10,923
  11,491
  12,087
  12,711
  13,365
  14,051
  14,771
  15,525
  16,316
  17,147
  18,017
  18,931
Debt-to-equity ratio
  0.697
  0.760
  0.820
  0.870
  0.920
  0.970
  1.010
  1.050
  1.080
  1.120
  1.150
  1.180
  1.210
  1.230
  1.260
  1.280
  1.300
  1.320
  1.340
  1.360
  1.380
  1.400
  1.410
  1.430
  1.440
  1.450
  1.470
  1.480
  1.490
  1.500
  1.510
Adjusted equity ratio
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  432
  566
  599
  634
  671
  709
  748
  789
  832
  877
  924
  973
  1,024
  1,078
  1,134
  1,192
  1,253
  1,318
  1,385
  1,455
  1,529
  1,606
  1,687
  1,772
  1,861
  1,955
  2,053
  2,155
  2,263
  2,376
  2,495
Depreciation, amort., depletion, $m
  362
  294
  313
  332
  352
  373
  395
  418
  442
  467
  493
  520
  549
  579
  610
  642
  676
  712
  749
  789
  830
  873
  918
  965
  1,015
  1,066
  1,121
  1,178
  1,238
  1,301
  1,367
Funds from operations, $m
  818
  860
  912
  966
  1,023
  1,082
  1,143
  1,207
  1,274
  1,344
  1,417
  1,493
  1,573
  1,656
  1,743
  1,834
  1,930
  2,030
  2,134
  2,244
  2,359
  2,479
  2,605
  2,737
  2,876
  3,021
  3,174
  3,333
  3,501
  3,677
  3,862
Change in working capital, $m
  -36
  24
  25
  26
  27
  28
  29
  30
  32
  33
  35
  36
  38
  40
  41
  43
  45
  47
  50
  52
  55
  57
  60
  63
  66
  69
  72
  76
  80
  84
  88
Cash from operations, $m
  854
  836
  887
  941
  996
  1,054
  1,114
  1,177
  1,243
  1,311
  1,382
  1,457
  1,535
  1,617
  1,702
  1,791
  1,884
  1,982
  2,085
  2,192
  2,304
  2,422
  2,545
  2,674
  2,810
  2,952
  3,101
  3,257
  3,421
  3,593
  3,774
Maintenance CAPEX, $m
  0
  -276
  -294
  -313
  -332
  -352
  -373
  -395
  -418
  -442
  -467
  -493
  -520
  -549
  -579
  -610
  -642
  -676
  -712
  -749
  -789
  -830
  -873
  -918
  -965
  -1,015
  -1,066
  -1,121
  -1,178
  -1,238
  -1,301
New CAPEX, $m
  -638
  -179
  -187
  -194
  -202
  -211
  -220
  -229
  -239
  -250
  -261
  -272
  -285
  -298
  -311
  -326
  -341
  -357
  -374
  -392
  -410
  -430
  -451
  -472
  -495
  -519
  -545
  -571
  -599
  -629
  -660
Cash from investing activities, $m
  -485
  -455
  -481
  -507
  -534
  -563
  -593
  -624
  -657
  -692
  -728
  -765
  -805
  -847
  -890
  -936
  -983
  -1,033
  -1,086
  -1,141
  -1,199
  -1,260
  -1,324
  -1,390
  -1,460
  -1,534
  -1,611
  -1,692
  -1,777
  -1,867
  -1,961
Free cash flow, $m
  369
  381
  407
  434
  462
  491
  521
  553
  585
  619
  655
  692
  730
  770
  812
  856
  901
  949
  999
  1,051
  1,105
  1,162
  1,222
  1,284
  1,350
  1,418
  1,490
  1,565
  1,644
  1,727
  1,813
Issuance/(repayment) of debt, $m
  -9
  158
  163
  170
  177
  184
  192
  201
  209
  218
  228
  238
  249
  261
  273
  285
  298
  312
  327
  343
  359
  376
  394
  414
  434
  455
  477
  500
  525
  550
  577
Issuance/(repurchase) of shares, $m
  -267
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -269
  158
  163
  170
  177
  184
  192
  201
  209
  218
  228
  238
  249
  261
  273
  285
  298
  312
  327
  343
  359
  376
  394
  414
  434
  455
  477
  500
  525
  550
  577
Total cash flow (excl. dividends), $m
  100
  539
  570
  604
  639
  675
  713
  753
  795
  838
  883
  930
  979
  1,031
  1,084
  1,141
  1,200
  1,261
  1,326
  1,393
  1,464
  1,538
  1,616
  1,698
  1,783
  1,873
  1,967
  2,065
  2,169
  2,277
  2,391
Retained Cash Flow (-), $m
  -114
  -90
  -95
  -99
  -103
  -107
  -112
  -117
  -122
  -127
  -133
  -139
  -145
  -152
  -159
  -166
  -174
  -182
  -191
  -200
  -209
  -219
  -230
  -241
  -252
  -265
  -278
  -291
  -305
  -320
  -336
Prev. year cash balance distribution, $m
 
  6
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  455
  475
  505
  536
  568
  601
  636
  673
  710
  750
  791
  834
  879
  926
  975
  1,026
  1,079
  1,135
  1,194
  1,255
  1,319
  1,387
  1,457
  1,531
  1,608
  1,689
  1,774
  1,863
  1,957
  2,055
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  436
  435
  439
  441
  440
  436
  430
  420
  408
  393
  376
  356
  334
  311
  286
  261
  235
  209
  184
  159
  136
  115
  95
  78
  63
  49
  38
  29
  21
  15
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. It operates through four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Truck (JBT). The JBI segment offers intermodal freight solutions, such as origin and destination pickup, and delivery services. It operates 84,594 pieces of company-owned trailing equipment; owns and maintains its chassis fleet comprising 73,746 units; and manages a fleet of 4,581 company-owned tractors, 695 independent contractor trucks, and 5,398 company drivers. The DCS segment designs, develops, and executes supply-chain solutions that support various transportation networks. As of December 31, 2016, it operated 6,976 company-owned trucks, 410 customer-owned trucks, and 15 independent contractor trucks, as well as 16,139 owned pieces of trailing equipment, and 6,549 customer-owned trailers. The ICS segment provides traditional freight brokerage and transportation logistics solutions; and flatbed, refrigerated, expedited, and less-than-truckload solutions, as well as various dry-van and intermodal solutions. It also offers single-source logistics management for customers that desire to outsource their transportation functions. This segment operates 42 remote sales offices or branches. The JBT segment provides full-load and dry-van freight services by utilizing tractors operating over roads and highways. As of December 31, 2016, it operated 1,376 company-owned tractors. The company also transports or arranges for the transportation of freight, including general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. J.B. Hunt Transport Services, Inc. was founded in 1961 and is headquartered in Lowell, Arkansas.

FINANCIAL RATIOS  of  J.B. Hunt Transport Services (JBHT)

Valuation Ratios
P/E Ratio 23.6
Price to Sales 1.6
Price to Book 7.2
Price to Tangible Book
Price to Cash Flow 11.9
Price to Free Cash Flow 47.2
Growth Rates
Sales Growth Rate 5.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -12%
Cap. Spend. - 3 Yr. Gr. Rate 5.3%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 69.7%
Total Debt to Equity 69.7%
Interest Coverage 29
Management Effectiveness
Return On Assets 12%
Ret/ On Assets - 3 Yr. Avg. 12.4%
Return On Total Capital 18.4%
Ret/ On T. Cap. - 3 Yr. Avg. 19%
Return On Equity 31.8%
Return On Equity - 3 Yr. Avg. 33.3%
Asset Turnover 1.8
Profitability Ratios
Gross Margin 20%
Gross Margin - 3 Yr. Avg. 19.5%
EBITDA Margin 16.5%
EBITDA Margin - 3 Yr. Avg. 16.2%
Operating Margin 11%
Oper. Margin - 3 Yr. Avg. 10.9%
Pre-Tax Margin 10.6%
Pre-Tax Margin - 3 Yr. Avg. 10.5%
Net Profit Margin 6.6%
Net Profit Margin - 3 Yr. Avg. 6.5%
Effective Tax Rate 37.9%
Eff/ Tax Rate - 3 Yr. Avg. 38%
Payout Ratio 22.9%

JBHT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JBHT stock intrinsic value calculation we used $6555 million for the last fiscal year's total revenue generated by J.B. Hunt Transport Services. The default revenue input number comes from 2016 income statement of J.B. Hunt Transport Services. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our JBHT stock valuation model: a) initial revenue growth rate of 6.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for JBHT is calculated based on our internal credit rating of J.B. Hunt Transport Services, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of J.B. Hunt Transport Services.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of JBHT stock the variable cost ratio is equal to 88.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for JBHT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for J.B. Hunt Transport Services.

Corporate tax rate of 27% is the nominal tax rate for J.B. Hunt Transport Services. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the JBHT stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for JBHT are equal to 42.1%.

Life of production assets of 10 years is the average useful life of capital assets used in J.B. Hunt Transport Services operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for JBHT is equal to 5.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1414 million for J.B. Hunt Transport Services - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 109.147 million for J.B. Hunt Transport Services is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of J.B. Hunt Transport Services at the current share price and the inputted number of shares is $10.0 billion.

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COMPANY NEWS

▶ The Latest on Canadian Pacifics Freight Volumes   [Jul-19-17 09:06AM  Market Realist]
▶ Behind Kansas City Southerns Carloads in Week 27   [Jul-18-17 09:07AM  Market Realist]
▶ JB Hunt misses 2Q profit forecasts   [Jul-17-17 10:50PM  Associated Press]
▶ Story Stocks from Briefing.com   [11:48AM  Briefing.com]
▶ Lift in Demand Fuels Hopes Trucking Has Turned the Corner   [01:19AM  The Wall Street Journal]
▶ Lift in Demand Fuels Hopes Trucking Has Turned the Corner   [Jul-15-17 08:00AM  The Wall Street Journal]
▶ Union Pacific: Its Intermodal Volumes Fell in Week 23   [Jun-20-17 07:37AM  Market Realist]
▶ J.B. Hunt Still Sounding Back-Up Beep   [May-26-17 11:14AM  TheStreet.com]
▶ Inside CSXs Intermodal Traffic in Week 19   [May-24-17 10:37AM  Market Realist]
▶ Story Stocks from Briefing.com   [09:28AM  Briefing.com]
▶ JB Hunt tops 1Q profit forecasts   [07:39AM  Associated Press]
▶ Glut of Vehicles, Uneven Demand Put Trucking Profits in the Crosshairs   [Apr-15-17 07:00AM  The Wall Street Journal]
▶ Truckers Held Hostage By NAFTA Impasse   [Mar-10-17 11:11AM  Investopedia]
▶ Truckers Held Hostage By NAFTA Impasse   [11:11AM  at Investopedia]
▶ Today's Top Supply Chain and Logistics News From WSJ   [07:08AM  at The Wall Street Journal]
▶ Zacks: J.B. Hunt Misses on Q4 Earnings (JBHT)   [02:37PM  at Investopedia]
▶ [$$] J.B. Hunt Profit, Revenue Rise   [08:32AM  at The Wall Street Journal]
Stock chart of JBHT Financial statements of JBHT Annual reports of JBHT
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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