Heartland Express Profitability Analysis

HTLD Stock  USD 12.22  0.03  0.25%   
Based on Heartland Express' profitability indicators, Heartland Express may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in December. Profitability indicators assess Heartland Express' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
-3.5 M
Current Value
-9.3 M
Quarterly Volatility
9.7 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Heartland Express' Operating Cash Flow Sales Ratio is projected to slightly decrease based on the last few years of reporting. At present, Heartland Express' Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Income Quality is expected to grow to 11.74, whereas Total Other Income Expense Net is projected to grow to (21.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.06150.0648
Notably Down
Slightly volatile
Net Profit Margin0.01160.0122
Notably Down
Slightly volatile
Pretax Profit Margin0.01560.0164
Notably Down
Slightly volatile
Return On Assets0.00930.0098
Notably Down
Slightly volatile
Return On Equity0.01620.0171
Notably Down
Slightly volatile
For Heartland Express profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Heartland Express to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Heartland Express utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Heartland Express's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Heartland Express over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
For information on how to trade Heartland Stock refer to our How to Trade Heartland Stock guide.
Is Cargo Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Heartland Express. If investors know Heartland will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Heartland Express listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.66)
Dividend Share
0.08
Earnings Share
(0.28)
Revenue Per Share
13.697
Quarterly Revenue Growth
(0.12)
The market value of Heartland Express is measured differently than its book value, which is the value of Heartland that is recorded on the company's balance sheet. Investors also form their own opinion of Heartland Express' value that differs from its market value or its book value, called intrinsic value, which is Heartland Express' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Heartland Express' market value can be influenced by many factors that don't directly affect Heartland Express' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Heartland Express' value and its price as these two are different measures arrived at by different means. Investors typically determine if Heartland Express is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Heartland Express' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Heartland Express Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Heartland Express's current stock value. Our valuation model uses many indicators to compare Heartland Express value to that of its competitors to determine the firm's financial worth.
Heartland Express is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers . At present, Heartland Express' Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Heartland Express by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Heartland Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Heartland Express

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.027
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Heartland Express

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0159
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Heartland Return On Asset Comparison

Heartland Express is currently under evaluation in return on asset category among its peers.

Heartland Express Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Heartland Express, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Heartland Express will eventually generate negative long term returns. The profitability progress is the general direction of Heartland Express' change in net profit over the period of time. It can combine multiple indicators of Heartland Express, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income42.4 M44.5 M
Income Before Tax19.9 M18.9 M
Total Other Income Expense Net-22.5 M-21.4 M
Net Income14.8 M14 M
Income Tax Expense5.1 M4.8 M
Net Income Applicable To Common Shares153.6 M161.3 M
Net Income From Continuing Ops25.2 M23.9 M
Non Operating Income Net Other1.5 M1.2 M
Interest Income1.7 M1.5 M
Net Interest Income-22.6 M-21.5 M
Change To Netincome-83.8 M-79.6 M
Net Income Per Share 0.19  0.18 
Income Quality 11.19  11.74 
Net Income Per E B T 0.74  0.54 

Heartland Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Heartland Express. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Heartland Express position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Heartland Express' important profitability drivers and their relationship over time.

Heartland Express Profitability Trends

Heartland Express profitability trend refers to the progression of profit or loss within a business. An upward trend means that Heartland Express' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Heartland Express' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Heartland Express Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Heartland Express different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Heartland Express in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Heartland Express' future profitability.

Use Heartland Express in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Heartland Express position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Heartland Express will appreciate offsetting losses from the drop in the long position's value.

Heartland Express Pair Trading

Heartland Express Pair Trading Analysis

The ability to find closely correlated positions to Heartland Express could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Heartland Express when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Heartland Express - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Heartland Express to buy it.
The correlation of Heartland Express is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Heartland Express moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Heartland Express moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Heartland Express can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Heartland Express position

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Drugs Theme
Companies involved in medical and pharmaceutical drug research, manufacturing, and delivery. The Drugs theme has 43 constituents at this time.
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When determining whether Heartland Express is a strong investment it is important to analyze Heartland Express' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Heartland Express' future performance. For an informed investment choice regarding Heartland Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
For information on how to trade Heartland Stock refer to our How to Trade Heartland Stock guide.
You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
To fully project Heartland Express' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Heartland Express at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Heartland Express' income statement, its balance sheet, and the statement of cash flows.
Potential Heartland Express investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Heartland Express investors may work on each financial statement separately, they are all related. The changes in Heartland Express's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Heartland Express's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.