Description

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 in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Truckload (JBT). The JBI segment offers intermodal freight solutions, including origin and destination pickup, and delivery services. It operates 96,743 pieces of company-owned trailing equipment; owns and maintains its own chassis fleet of 82,731 units; and manages a fleet of 4,989 company-owned tractors, 570 independent contractor trucks, and 6,376 company drivers. The DCS segment designs, develops, and executes supply-chain solutions that support various transportation networks. As of December 31, 2019, it operated 10,542 company-owned trucks, 505 customer-owned trucks, and 40 independent contractor trucks, as well as 20,860 owned pieces of trailing equipment and 7,258 customer-owned trailers. The ICS segment offers 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 provides an online multimodal marketplace; and single-source logistics management for customers that desire to outsource their transportation functions. This segment operates 37 remote sales offices or branches. The JBT segment offers full-load and dry-van freight services by utilizing tractors operating over roads and highways. As of December 31, 2019, it operated 845 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 incorporated in 1961 and is headquartered in Lowell, Arkansas.

Statistics (YTD)

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TotalReturn:

'Total return is the amount of value an investor earns from a security over a specific period, typically one year, when all distributions are reinvested. Total return is expressed as a percentage of the amount invested. For example, a total return of 20% means the security increased by 20% of its original value due to a price increase, distribution of dividends (if a stock), coupons (if a bond) or capital gains (if a fund). Total return is a strong measure of an investment’s overall performance.'

Applying this definition to our asset in some examples:
  • Looking at the total return of 44% in the last 5 years of J.B. Hunt Transport Services, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (67.5%)
  • During the last 3 years, the total return, or performance is 48.9%, which is larger, thus better than the value of 39.8% from the benchmark.

CAGR:

'Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some element of the business, for example revenue, units delivered, registered users, etc. CAGR dampens the effect of volatility of periodic returns that can render arithmetic means irrelevant. It is particularly useful to compare growth rates from various data sets of common domain such as revenue growth of companies in the same industry.'

Applying this definition to our asset in some examples:
  • The annual performance (CAGR) over 5 years of J.B. Hunt Transport Services is 7.6%, which is lower, thus worse compared to the benchmark SPY (10.9%) in the same period.
  • Looking at annual performance (CAGR) in of 14.2% in the period of the last 3 years, we see it is relatively larger, thus better in comparison to SPY (11.8%).

Volatility:

'Volatility is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. It shows the range to which the price of a security may increase or decrease. Volatility measures the risk of a security. It is used in option pricing formula to gauge the fluctuations in the returns of the underlying assets. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time.'

Applying this definition to our asset in some examples:
  • Looking at the historical 30 days volatility of 31.2% in the last 5 years of J.B. Hunt Transport Services, we see it is relatively larger, thus worse in comparison to the benchmark SPY (21.4%)
  • Compared with SPY (18.7%) in the period of the last 3 years, the volatility of 29.5% is greater, thus worse.

DownVol:

'Risk measures typically quantify the downside risk, whereas the standard deviation (an example of a deviation risk measure) measures both the upside and downside risk. Specifically, downside risk in our definition is the semi-deviation, that is the standard deviation of all negative returns.'

Using this definition on our asset we see for example:
  • Looking at the downside deviation of 21.6% in the last 5 years of J.B. Hunt Transport Services, we see it is relatively greater, thus worse in comparison to the benchmark SPY (15.4%)
  • Compared with SPY (13.3%) in the period of the last 3 years, the downside risk of 20.5% is higher, thus worse.

Sharpe:

'The Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return (or risk premium) per unit of deviation in an investment asset or a trading strategy, typically referred to as risk, named after William F. Sharpe.'

Applying this definition to our asset in some examples:
  • The ratio of return and volatility (Sharpe) over 5 years of J.B. Hunt Transport Services is 0.16, which is lower, thus worse compared to the benchmark SPY (0.39) in the same period.
  • Compared with SPY (0.5) in the period of the last 3 years, the ratio of return and volatility (Sharpe) of 0.4 is lower, thus worse.

Sortino:

'The Sortino ratio, a variation of the Sharpe ratio only factors in the downside, or negative volatility, rather than the total volatility used in calculating the Sharpe ratio. The theory behind the Sortino variation is that upside volatility is a plus for the investment, and it, therefore, should not be included in the risk calculation. Therefore, the Sortino ratio takes upside volatility out of the equation and uses only the downside standard deviation in its calculation instead of the total standard deviation that is used in calculating the Sharpe ratio.'

Using this definition on our asset we see for example:
  • Looking at the ratio of annual return and downside deviation of 0.23 in the last 5 years of J.B. Hunt Transport Services, we see it is relatively lower, thus worse in comparison to the benchmark SPY (0.54)
  • Compared with SPY (0.7) in the period of the last 3 years, the excess return divided by the downside deviation of 0.57 is smaller, thus worse.

Ulcer:

'The ulcer index is a stock market risk measure or technical analysis indicator devised by Peter Martin in 1987, and published by him and Byron McCann in their 1989 book The Investors Guide to Fidelity Funds. It's designed as a measure of volatility, but only volatility in the downward direction, i.e. the amount of drawdown or retracement occurring over a period. Other volatility measures like standard deviation treat up and down movement equally, but a trader doesn't mind upward movement, it's the downside that causes stress and stomach ulcers that the index's name suggests.'

Which means for our asset as example:
  • Compared with the benchmark SPY (9.48 ) in the period of the last 5 years, the Ulcer Index of 16 of J.B. Hunt Transport Services is greater, thus worse.
  • During the last 3 years, the Ulcer Index is 13 , which is larger, thus worse than the value of 10 from the benchmark.

MaxDD:

'Maximum drawdown is defined as the peak-to-trough decline of an investment during a specific period. It is usually quoted as a percentage of the peak value. The maximum drawdown can be calculated based on absolute returns, in order to identify strategies that suffer less during market downturns, such as low-volatility strategies. However, the maximum drawdown can also be calculated based on returns relative to a benchmark index, for identifying strategies that show steady outperformance over time.'

Using this definition on our asset we see for example:
  • Looking at the maximum DrawDown of -41.4 days in the last 5 years of J.B. Hunt Transport Services, we see it is relatively lower, thus worse in comparison to the benchmark SPY (-33.7 days)
  • Compared with SPY (-24.5 days) in the period of the last 3 years, the maximum DrawDown of -28.8 days is lower, thus worse.

MaxDuration:

'The Maximum Drawdown Duration is an extension of the Maximum Drawdown. However, this metric does not explain the drawdown in dollars or percentages, rather in days, weeks, or months. It is the length of time the account was in the Max Drawdown. A Max Drawdown measures a retrenchment from when an equity curve reaches a new high. It’s the maximum an account lost during that retrenchment. This method is applied because a valley can’t be measured until a new high occurs. Once the new high is reached, the percentage change from the old high to the bottom of the largest trough is recorded.'

Using this definition on our asset we see for example:
  • The maximum days under water over 5 years of J.B. Hunt Transport Services is 524 days, which is larger, thus worse compared to the benchmark SPY (358 days) in the same period.
  • Looking at maximum days under water in of 308 days in the period of the last 3 years, we see it is relatively smaller, thus better in comparison to SPY (358 days).

AveDuration:

'The Drawdown Duration is the length of any peak to peak period, or the time between new equity highs. The Avg Drawdown Duration is the average amount of time an investment has seen between peaks (equity highs), or in other terms the average of time under water of all drawdowns. So in contrast to the Maximum duration it does not measure only one drawdown event but calculates the average of all.'

Applying this definition to our asset in some examples:
  • Looking at the average days under water of 162 days in the last 5 years of J.B. Hunt Transport Services, we see it is relatively higher, thus worse in comparison to the benchmark SPY (80 days)
  • Compared with SPY (104 days) in the period of the last 3 years, the average days below previous high of 82 days is lower, thus better.

Performance (YTD)

Historical returns have been extended using synthetic data.

Allocations ()

Allocations

Returns (%)

  • Note that yearly returns do not equal the sum of monthly returns due to compounding.
  • Performance results of J.B. Hunt Transport Services are hypothetical, do not account for slippage, fees or taxes, and are based on backtesting, which has many inherent limitations, some of which are described in our Terms of Use.