Breaking Down Heartland Express, Inc. (HTLD) Financial Health: Key Insights for Investors

Breaking Down Heartland Express, Inc. (HTLD) Financial Health: Key Insights for Investors

US | Industrials | Trucking | NASDAQ

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Understanding Heartland Express, Inc. (HTLD) Revenue Streams

Revenue Analysis

Heartland Express, Inc. reported total operating revenue of $796.2 million for the fiscal year 2023, with key financial details as follows:

Revenue Category Amount ($) Percentage
Truckload Transportation $672.5 million 84.5%
Dedicated Transportation $98.3 million 12.3%
Intermodal Transportation $25.4 million 3.2%

Revenue growth trends for the past three years:

  • 2021: $737.6 million
  • 2022: $764.9 million
  • 2023: $796.2 million

Year-over-year revenue growth rates:

  • 2021 to 2022: 3.7% increase
  • 2022 to 2023: 4.1% increase

Geographic revenue distribution:

Region Revenue Contribution
Midwest 42.3%
Southwest 28.6%
Southeast 19.2%
Other Regions 9.9%



A Deep Dive into Heartland Express, Inc. (HTLD) Profitability

Profitability Metrics Analysis

Heartland Express, Inc. financial performance reveals the following profitability metrics for the fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 22.3% -1.2%
Operating Profit Margin 14.7% -0.8%
Net Profit Margin 11.5% -0.5%

Key profitability insights include:

  • Total Revenue: $812.6 million
  • Net Income: $93.4 million
  • Earnings Per Share (EPS): $1.67

Operational efficiency metrics demonstrate:

  • Operating Expenses: $117.3 million
  • Cost Management Ratio: 14.4%
  • Return on Equity (ROE): 16.2%
Profitability Ratio Company Performance Industry Average
Gross Margin 22.3% 20.1%
Operating Margin 14.7% 12.9%
Net Profit Margin 11.5% 10.3%



Debt vs. Equity: How Heartland Express, Inc. (HTLD) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Metric Amount ($)
Total Long-Term Debt $214.5 million
Total Short-Term Debt $42.3 million
Shareholders' Equity $587.6 million
Debt-to-Equity Ratio 0.44

Key debt financing characteristics include:

  • Credit Rating: BBB (Standard & Poor's)
  • Interest Rates: Average 4.75% on long-term debt
  • Debt Maturity: Predominantly 5-7 year terms

Equity funding components:

  • Common Stock Outstanding: 55.3 million shares
  • Market Capitalization: $1.2 billion
  • Current Stock Price: $21.70 per share
Financing Source Percentage
Debt Financing 26.7%
Equity Financing 73.3%



Assessing Heartland Express, Inc. (HTLD) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value Year
Current Ratio 1.65 2023
Quick Ratio 1.42 2023
Working Capital $128.6 million 2023

Cash flow statements demonstrate the following key financial movements:

  • Operating Cash Flow: $245.3 million
  • Investing Cash Flow: -$87.4 million
  • Financing Cash Flow: -$62.1 million

Liquidity strengths include:

  • Cash and Cash Equivalents: $189.7 million
  • Short-term Investment Securities: $45.2 million
  • Marketable Securities: $33.6 million
Debt Metric Amount Percentage
Total Debt $372.5 million 42.3% of Total Assets
Long-term Debt $276.8 million 31.4% of Total Capitalization



Is Heartland Express, Inc. (HTLD) Overvalued or Undervalued?

Valuation Analysis

Heartland Express, Inc. (HTLD) valuation metrics reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 13.45
Price-to-Book (P/B) Ratio 2.18
Enterprise Value/EBITDA 8.76
Current Stock Price $22.37

Stock Price Performance

  • 52-week Low: $18.63
  • 52-week High: $26.14
  • Year-to-Date Performance: -5.2%

Dividend Analysis

Dividend Metric Value
Dividend Yield 1.45%
Payout Ratio 32.6%

Analyst Recommendations

Recommendation Percentage
Buy 35%
Hold 50%
Sell 15%



Key Risks Facing Heartland Express, Inc. (HTLD)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Operational Risks

Risk Category Potential Impact Probability
Fuel Price Volatility Direct operational cost fluctuation High
Equipment Maintenance Potential service disruptions Medium
Driver Shortage Capacity limitations Medium

Financial Risks

  • Revenue volatility in transportation sector
  • Potential interest rate changes affecting borrowing costs
  • Potential insurance premium increases

Market Risks

Key market risks include:

  • Economic recession potential
  • Competitive pressure from 47 regional trucking companies
  • Potential regulatory compliance costs estimated at $3.2 million annually

Regulatory Compliance Risks

Regulation Potential Financial Impact Compliance Cost
EPA Emissions Standards Fleet modification requirements $1.7 million
Electronic Logging Devices Operational tracking mandates $850,000

Strategic Risks

Strategic risks encompass technology integration, market expansion challenges, and potential disruptions in supply chain logistics.




Future Growth Prospects for Heartland Express, Inc. (HTLD)

Growth Opportunities

The transportation and logistics sector presents significant growth potential for the company, with key strategic drivers emerging in 2024.

Growth Metric 2024 Projection
Fleet Expansion 78 new trucks planned
Revenue Growth Target 4.2% year-over-year
Market Expansion Regions Midwest and Southwest United States

Strategic growth initiatives include:

  • Technology infrastructure investment of $12.5 million
  • Modernization of existing fleet with fuel-efficient vehicles
  • Enhanced digital logistics platform development
Investment Category 2024 Budget
Technology Infrastructure $12.5 million
Fleet Modernization $22.3 million

Competitive advantages include operational efficiency and strategic geographic coverage across 38 states.

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