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

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$90.95

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$90.95

 
Intrinsic value

$69.51

 
Up/down potential

-24%

 
Rating

sell

 
Value-price divergence* premium content

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*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 10.1

 

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
  6.20
  6.08
  5.97
  5.87
  5.79
  5.71
  5.64
  5.57
  5.52
  5.46
  5.42
  5.38
  5.34
  5.31
  5.27
  5.25
  5.22
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
Revenue, $m
  6,555
  6,961
  7,385
  7,826
  8,285
  8,765
  9,265
  9,788
  10,333
  10,903
  11,499
  12,122
  12,774
  13,456
  14,170
  14,917
  15,700
  16,520
  17,379
  18,279
  19,223
  20,212
  21,249
  22,336
  23,477
  24,673
  25,928
  27,245
  28,626
  30,075
  31,596
Variable operating expenses, $m
 
  6,154
  6,528
  6,918
  7,324
  7,748
  8,191
  8,652
  9,135
  9,638
  10,165
  10,716
  11,292
  11,895
  12,526
  13,187
  13,879
  14,603
  15,363
  16,159
  16,993
  17,867
  18,784
  19,745
  20,754
  21,811
  22,921
  24,084
  25,305
  26,587
  27,931
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
  6,154
  6,528
  6,918
  7,324
  7,748
  8,191
  8,652
  9,135
  9,638
  10,165
  10,716
  11,292
  11,895
  12,526
  13,187
  13,879
  14,603
  15,363
  16,159
  16,993
  17,867
  18,784
  19,745
  20,754
  21,811
  22,921
  24,084
  25,305
  26,587
  27,931
Operating income, $m
  721
  808
  857
  908
  961
  1,017
  1,075
  1,135
  1,199
  1,265
  1,334
  1,406
  1,482
  1,561
  1,644
  1,730
  1,821
  1,916
  2,016
  2,120
  2,230
  2,345
  2,465
  2,591
  2,723
  2,862
  3,008
  3,160
  3,321
  3,489
  3,665
EBITDA, $m
  1,083
  1,193
  1,266
  1,341
  1,420
  1,502
  1,588
  1,678
  1,771
  1,869
  1,971
  2,078
  2,189
  2,306
  2,429
  2,557
  2,691
  2,831
  2,979
  3,133
  3,295
  3,464
  3,642
  3,828
  4,024
  4,229
  4,444
  4,670
  4,906
  5,155
  5,415
Interest expense (income), $m
  25
  35
  40
  45
  51
  57
  63
  69
  76
  83
  91
  98
  106
  115
  124
  133
  142
  152
  163
  174
  186
  198
  211
  224
  238
  253
  268
  284
  301
  319
  338
Earnings before tax, $m
  696
  773
  817
  863
  910
  960
  1,012
  1,066
  1,122
  1,182
  1,243
  1,308
  1,375
  1,446
  1,520
  1,598
  1,679
  1,764
  1,853
  1,946
  2,044
  2,147
  2,254
  2,367
  2,485
  2,609
  2,739
  2,876
  3,019
  3,170
  3,327
Tax expense, $m
  264
  209
  221
  233
  246
  259
  273
  288
  303
  319
  336
  353
  371
  390
  410
  431
  453
  476
  500
  525
  552
  580
  609
  639
  671
  705
  740
  777
  815
  856
  898
Net income, $m
  432
  564
  596
  630
  664
  701
  739
  778
  819
  863
  908
  955
  1,004
  1,056
  1,110
  1,166
  1,226
  1,288
  1,353
  1,421
  1,492
  1,567
  1,646
  1,728
  1,814
  1,905
  2,000
  2,099
  2,204
  2,314
  2,429

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
  4,059
  4,306
  4,563
  4,831
  5,111
  5,402
  5,707
  6,025
  6,358
  6,705
  7,068
  7,448
  7,846
  8,262
  8,698
  9,154
  9,632
  10,133
  10,658
  11,209
  11,785
  12,390
  13,024
  13,689
  14,387
  15,119
  15,886
  16,692
  17,537
  18,423
Adjusted assets (=assets-cash), $m
  3,823
  4,059
  4,306
  4,563
  4,831
  5,111
  5,402
  5,707
  6,025
  6,358
  6,705
  7,068
  7,448
  7,846
  8,262
  8,698
  9,154
  9,632
  10,133
  10,658
  11,209
  11,785
  12,390
  13,024
  13,689
  14,387
  15,119
  15,886
  16,692
  17,537
  18,423
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
  2,931
  3,109
  3,295
  3,488
  3,690
  3,901
  4,121
  4,350
  4,590
  4,841
  5,103
  5,378
  5,665
  5,965
  6,280
  6,610
  6,955
  7,316
  7,695
  8,093
  8,509
  8,946
  9,404
  9,884
  10,387
  10,916
  11,470
  12,052
  12,662
  13,302
Working capital, $m
  373
  390
  414
  438
  464
  491
  519
  548
  579
  611
  644
  679
  715
  754
  794
  835
  879
  925
  973
  1,024
  1,076
  1,132
  1,190
  1,251
  1,315
  1,382
  1,452
  1,526
  1,603
  1,684
  1,769
Total debt, $m
  986
  1,136
  1,292
  1,455
  1,624
  1,801
  1,985
  2,178
  2,379
  2,589
  2,809
  3,038
  3,278
  3,530
  3,793
  4,068
  4,357
  4,659
  4,975
  5,307
  5,655
  6,019
  6,401
  6,802
  7,223
  7,663
  8,126
  8,611
  9,120
  9,654
  10,215
Total liabilities, $m
  2,415
  2,565
  2,721
  2,884
  3,053
  3,230
  3,414
  3,607
  3,808
  4,018
  4,238
  4,467
  4,707
  4,959
  5,222
  5,497
  5,786
  6,088
  6,404
  6,736
  7,084
  7,448
  7,830
  8,231
  8,652
  9,092
  9,555
  10,040
  10,549
  11,083
  11,644
Total equity, $m
  1,414
  1,494
  1,585
  1,679
  1,778
  1,881
  1,988
  2,100
  2,217
  2,340
  2,467
  2,601
  2,741
  2,887
  3,040
  3,201
  3,369
  3,545
  3,729
  3,922
  4,125
  4,337
  4,560
  4,793
  5,038
  5,294
  5,564
  5,846
  6,142
  6,453
  6,780
Total liabilities and equity, $m
  3,829
  4,059
  4,306
  4,563
  4,831
  5,111
  5,402
  5,707
  6,025
  6,358
  6,705
  7,068
  7,448
  7,846
  8,262
  8,698
  9,155
  9,633
  10,133
  10,658
  11,209
  11,785
  12,390
  13,024
  13,690
  14,386
  15,119
  15,886
  16,691
  17,536
  18,424
Debt-to-equity ratio
  0.697
  0.760
  0.820
  0.870
  0.910
  0.960
  1.000
  1.040
  1.070
  1.110
  1.140
  1.170
  1.200
  1.220
  1.250
  1.270
  1.290
  1.310
  1.330
  1.350
  1.370
  1.390
  1.400
  1.420
  1.430
  1.450
  1.460
  1.470
  1.480
  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
  564
  596
  630
  664
  701
  739
  778
  819
  863
  908
  955
  1,004
  1,056
  1,110
  1,166
  1,226
  1,288
  1,353
  1,421
  1,492
  1,567
  1,646
  1,728
  1,814
  1,905
  2,000
  2,099
  2,204
  2,314
  2,429
Depreciation, amort., depletion, $m
  362
  386
  409
  434
  459
  486
  513
  542
  572
  604
  637
  672
  708
  745
  785
  826
  870
  915
  963
  1,013
  1,065
  1,120
  1,177
  1,237
  1,301
  1,367
  1,436
  1,509
  1,586
  1,666
  1,750
Funds from operations, $m
  818
  950
  1,005
  1,063
  1,123
  1,186
  1,252
  1,320
  1,392
  1,466
  1,545
  1,626
  1,712
  1,801
  1,895
  1,993
  2,095
  2,203
  2,315
  2,433
  2,557
  2,687
  2,823
  2,965
  3,115
  3,272
  3,436
  3,609
  3,790
  3,980
  4,179
Change in working capital, $m
  -36
  23
  24
  25
  26
  27
  28
  29
  31
  32
  33
  35
  36
  38
  40
  42
  44
  46
  48
  50
  53
  55
  58
  61
  64
  67
  70
  74
  77
  81
  85
Cash from operations, $m
  854
  986
  982
  1,038
  1,098
  1,159
  1,224
  1,291
  1,361
  1,435
  1,511
  1,591
  1,675
  1,763
  1,855
  1,951
  2,051
  2,157
  2,267
  2,383
  2,504
  2,631
  2,765
  2,904
  3,051
  3,205
  3,366
  3,535
  3,712
  3,899
  4,094
Maintenance CAPEX, $m
  0
  -363
  -386
  -409
  -434
  -459
  -486
  -513
  -542
  -572
  -604
  -637
  -672
  -708
  -745
  -785
  -826
  -870
  -915
  -963
  -1,013
  -1,065
  -1,120
  -1,177
  -1,237
  -1,301
  -1,367
  -1,436
  -1,509
  -1,586
  -1,666
New CAPEX, $m
  -638
  -171
  -178
  -186
  -194
  -202
  -211
  -220
  -230
  -240
  -251
  -262
  -274
  -287
  -301
  -315
  -330
  -345
  -362
  -379
  -397
  -416
  -437
  -458
  -480
  -504
  -528
  -554
  -582
  -610
  -640
Cash from investing activities, $m
  -485
  -534
  -564
  -595
  -628
  -661
  -697
  -733
  -772
  -812
  -855
  -899
  -946
  -995
  -1,046
  -1,100
  -1,156
  -1,215
  -1,277
  -1,342
  -1,410
  -1,481
  -1,557
  -1,635
  -1,717
  -1,805
  -1,895
  -1,990
  -2,091
  -2,196
  -2,306
Free cash flow, $m
  369
  452
  418
  444
  471
  499
  528
  558
  589
  622
  656
  692
  729
  768
  809
  851
  896
  942
  990
  1,041
  1,094
  1,150
  1,208
  1,269
  1,333
  1,400
  1,471
  1,544
  1,622
  1,703
  1,788
Issuance/(repayment) of debt, $m
  -9
  150
  156
  163
  169
  177
  184
  192
  201
  210
  220
  230
  240
  251
  263
  275
  288
  302
  317
  332
  348
  365
  382
  401
  420
  441
  462
  485
  509
  534
  560
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
  150
  156
  163
  169
  177
  184
  192
  201
  210
  220
  230
  240
  251
  263
  275
  288
  302
  317
  332
  348
  365
  382
  401
  420
  441
  462
  485
  509
  534
  560
Total cash flow (excl. dividends), $m
  100
  603
  574
  606
  640
  675
  712
  750
  790
  832
  876
  922
  969
  1,019
  1,072
  1,127
  1,184
  1,244
  1,307
  1,373
  1,442
  1,515
  1,590
  1,670
  1,754
  1,841
  1,933
  2,030
  2,131
  2,237
  2,348
Retained Cash Flow (-), $m
  -114
  -86
  -91
  -95
  -99
  -103
  -107
  -112
  -117
  -122
  -128
  -134
  -140
  -146
  -153
  -160
  -168
  -176
  -184
  -193
  -202
  -212
  -223
  -233
  -245
  -257
  -269
  -282
  -296
  -311
  -326
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
 
  523
  483
  512
  541
  572
  605
  638
  673
  710
  748
  788
  830
  873
  919
  966
  1,016
  1,068
  1,123
  1,180
  1,240
  1,302
  1,368
  1,437
  1,509
  1,585
  1,664
  1,747
  1,834
  1,926
  2,022
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
 
  501
  442
  445
  446
  444
  439
  431
  421
  408
  392
  374
  354
  332
  308
  284
  258
  232
  207
  182
  158
  135
  114
  94
  77
  62
  49
  37
  28
  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 23.4
Price to Sales 1.5
Price to Book 7.2
Price to Tangible Book
Price to Cash Flow 11.9
Price to Free Cash Flow 46.9
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 6.2% 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 7.6 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 111.075 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 $10.1 billion.


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COMPANY NEWS

▶ 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]
▶ BNSF, J.B. Hunt Head to Arbitration   [Jan-04-17 04:33PM  at The Wall Street Journal]
▶ Truckers Need NAFTA to Rally in 2017 (JBHT, LSTR)   [Dec-28-16 10:41AM  at Investopedia]
▶ How Vereit Inc (VER) Stacks Up Against Similarly Valued Stocks   [Dec-13-16 11:01AM  at Insider Monkey]
▶ Do Hedge Funds Love J.B. Hunt Transport Services Inc (JBHT)?   [Dec-07-16 10:34AM  at Insider Monkey]
▶ Big Rebound in Smart Money Ownership of Mosaic Co (MOS)   [Nov-27-16 01:32PM  at Insider Monkey]
Stock chart of JBHT Financial statements 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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