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Why ARCBEST CORP (NASDAQ:ARCB) qualifies as a quality stock.

By Mill Chart

Last update: Sep 7, 2023

In this article we will dive into ARCBEST CORP (NASDAQ:ARCB) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ARCBEST CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

  • Over the past 5 years, ARCBEST CORP has experienced impressive revenue growth, with 13.5% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • ARCBEST CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 16.65% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a Debt/Free Cash Flow Ratio of 1.21, ARCBEST CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • ARCBEST CORP exhibits impressive Profit Quality (5-year) with a 179.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 44.33%, ARCBEST CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • ARCBEST CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, ARCB scores 6 out of 10 in our fundamental rating. ARCB was compared to 39 industry peers in the Ground Transportation industry. While ARCB has a great health rating, its profitability is only average at the moment. ARCB has a valuation in line with the averages, but on the other hand it scores bad on growth.

Check the latest full fundamental report of ARCB for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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