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JBHT

Peter Lynch Guru Analysis for J.B. Hunt Transport Services, Inc.

$75.91
*  
0.54
  negative  
0.72%
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*Delayed - data as of May 21, 2013 
Exchange: NASDAQ
Industry: Transportation
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Assessments & Analysis Based on May 20, 2013 close price: $75.37

  for the P/E/Growth Investor based on the criteria of Peter Lynch. Return to JBHT Guru Analysis

All Star Guru Scorecard

Source Go Chart %
Peter Lynch 0%
Benjamin Graham 43%
Validea 57%
Motley Fool 45%
David Dreman 43%
Martin Zweig 54%
Kenneth Fisher 48%
James P. O'Shaughnessy 40%

   

Detailed Analysis

Guru Score: 0%


Determine the Classification:

JBHT is considered a "True Stalwart", according to this methodology, as its earnings growth of 19.68% lies within a moderate 10%-19% range and its annual sales of $5,181 million are greater than the multi billion dollar level.This methodology looks for the "Stalwart" securities to gain 30%-50% in value over a two year period if they can be purchased at an attractive price based on the P/E to Growth ratio. JBHT is attractive if JBHT can hold its own during a recession.


Inventory To Sales: [PASS]

When inventories increase faster than sales, it is a red flag. However an increase of up to 5% is considered bearable if all other ratios appear attractive. Inventory to sales for JBHT was .46% last year, while for this year it is .46%. Since inventory to sales has not changed appreciably, JBHT passes this test.


Yield adjusted P/E to Growth (PEG) ratio: [FAIL]

The Yield-adjusted P/E/G ratio for JBHT (1.4), Based on the average of the 3, 4 and 5 year historical EPS growth rates, is unacceptable for a "Stalwart". This criteria is the most important one in the methodology and a failure of it will automatically result in a 0% score for the overall analysis.


EARNINGS PER SHARE: [PASS]

The EPS for a stalwart company must be positive. JBHT's EPS ($2.63) would satisfy this criterion.


Total Debt/Equity Ratio: [PASS]

This methodology would consider the Debt/Equity ratio for JBHT (67.74%) to be mediocre. If the Debt/Equity ratio is this high, the other ratios and financial statistics for JBHT should be good enough to compensate.


FREE CASH FLOW: [NEUTRAL]

The Free Cash Flow/Price ratio, though not a requirement, is considered a bonus if it is above 35%. A positive Cash Flow (the higher the better) separates a wonderfully reliable investment from a shaky one. This methodology prefers not to invest in companies that rely heavily on capital spending. This ratio for JBHT (.28%) is too low to add to the attractiveness of the stock. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.


NET CASH POSITION: [NEUTRAL]

Another bonus for a company is having a Net Cash/Price ratio above 30%. Lynch defines net cash as cash and marketable securities minus long term debt. According to this methodology, a high value for this ratio dramatically cuts down on the risk of the security. The Net Cash/Price ratio for JBHT (0.1%) is too low to add to the attractiveness of this company. Keep in mind, however, that it does not adversely affect the company as it is a bonus criteria.

 
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