| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 41.55 | 359 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 3.56 | -61 |
| Graham Formula | 1.70 | -81 |
Heartland Express, Inc. (NASDAQ: HTLD) is a leading short-to-medium haul truckload carrier operating across the United States and Canada. Specializing in asset-based dry van and temperature-controlled truckload services, the company serves major retailers and manufacturers in consumer goods, appliances, food products, and automotive industries. Founded in 1978 and headquartered in North Liberty, Iowa, Heartland Express operates under its flagship brand and Millis Transfer, ensuring reliable nationwide logistics solutions. The company’s asset-based model provides stability in a competitive trucking sector, though it faces cyclical demand pressures. With a market cap of approximately $687 million, Heartland Express remains a key player in the industrials sector, balancing operational efficiency with strategic fleet investments. Its focus on core logistics services positions it well in an industry increasingly driven by e-commerce and just-in-time supply chains.
Heartland Express presents a mixed investment profile. While its asset-based truckload model provides revenue stability, the company reported a net loss of $29.7 million in its latest fiscal year, with diluted EPS at -$0.38. Operating cash flow of $144.3 million suggests underlying operational strength, but high capital expenditures ($109.5 million) and moderate debt ($208.6 million) weigh on near-term profitability. The trucking industry remains cyclical, and HTLD’s beta of 1.036 indicates market-correlated volatility. A modest dividend yield (dividend per share: $0.08) offers limited income appeal. Investors should weigh its established market position against margin pressures from fuel costs and driver shortages. Long-term prospects hinge on freight demand and cost management.
Heartland Express competes in the fragmented truckload carrier market, where scale and efficiency determine profitability. Its competitive advantage lies in its asset-based model, which provides control over service quality and pricing, unlike non-asset brokers. However, this also exposes HTLD to higher fixed costs (e.g., fleet maintenance, driver wages). The company’s focus on short-to-medium hauls differentiates it from long-haul giants but limits exposure to higher-margin dedicated contracts. Its temperature-controlled services add niche diversification, though specialized carriers like Knight-Swift (KNX) dominate this segment. HTLD’s regional strength in the Midwest and Southeast is countered by weaker brand recognition compared to national players. Technology investments (e.g., routing optimization) lag behind industry leaders, potentially affecting efficiency. The company’s smaller scale also restricts bargaining power with shippers, a key disadvantage versus larger peers like Schneider National (SNDR).