ARCBEST CORP (ARCB) Stock Fundamental Analysis
NASDAQ:ARCB - Nasdaq - US03937C1053 - Common Stock - Currency: USD
Taking everything into account, ARCB scores 6 out of 10 in our fundamental rating. ARCB was compared to 40 industry peers in the Ground Transportation industry. ARCB gets an excellent profitability rating and is at the same time showing great financial health properties. ARCB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ARCB was profitable.
ARCB had a positive operating cash flow in the past year.
Each year in the past 5 years ARCB has been profitable.
ARCB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARCB has a better Return On Assets (7.44%) than 70.00% of its industry peers.
The Return On Equity of ARCB (13.83%) is better than 65.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.01%, ARCB belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARCB is above the industry average of 8.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 13.83% | ||
| ROIC | 10.01% |
ROA(3y)8.99%
ROA(5y)8.21%
ROE(3y)18.28%
ROE(5y)17.28%
ROIC(3y)12.49%
ROIC(5y)11.58%
1.3 Margins
With a Profit Margin value of 4.36%, ARCB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
ARCB's Profit Margin has improved in the last couple of years.
ARCB has a Operating Margin of 5.59%. This is comparable to the rest of the industry: ARCB outperforms 55.00% of its industry peers.
In the last couple of years the Operating Margin of ARCB has grown nicely.
ARCB has a Gross Margin of 85.59%. This is amongst the best in the industry. ARCB outperforms 97.50% of its industry peers.
ARCB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.59% | ||
| PM (TTM) | 4.36% | ||
| GM | 85.59% |
OM growth 3Y-4.18%
OM growth 5Y15.74%
PM growth 3Y-8.1%
PM growth 5Y25.48%
GM growth 3Y3.29%
GM growth 5Y2.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARCB is creating some value.
Compared to 1 year ago, ARCB has less shares outstanding
The number of shares outstanding for ARCB has been reduced compared to 5 years ago.
The debt/assets ratio for ARCB has been reduced compared to a year ago.
2.2 Solvency
ARCB has an Altman-Z score of 3.78. This indicates that ARCB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.78, ARCB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ARCB has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as ARCB would need 3.66 years to pay back of all of its debts.
ARCB has a Debt to FCF ratio of 3.66. This is amongst the best in the industry. ARCB outperforms 82.50% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that ARCB is not too dependend on debt financing.
ARCB has a Debt to Equity ratio of 0.11. This is amongst the best in the industry. ARCB outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.09
WACC9.2%
2.3 Liquidity
A Current Ratio of 1.00 indicates that ARCB should not have too much problems paying its short term obligations.
ARCB has a Current ratio (1.00) which is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that ARCB should not have too much problems paying its short term obligations.
ARCB has a Quick ratio of 1.00. This is comparable to the rest of the industry: ARCB outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
ARCB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.72%.
Measured over the past years, ARCB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.61% on average per year.
Looking at the last year, ARCB shows a decrease in Revenue. The Revenue has decreased by -5.69% in the last year.
The Revenue has been growing slightly by 6.94% on average over the past years.
EPS 1Y (TTM)-28.72%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-61.94%
Revenue 1Y (TTM)-5.69%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-6.69%
3.2 Future
Based on estimates for the next years, ARCB will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.61% on average per year.
ARCB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.77% yearly.
EPS Next Y-19.46%
EPS Next 2Y9.15%
EPS Next 3Y14.61%
EPS Next 5YN/A
Revenue Next Year-1.55%
Revenue Next 2Y2.24%
Revenue Next 3Y2.77%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.84, which indicates a correct valuation of ARCB.
Based on the Price/Earnings ratio, ARCB is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
ARCB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.08, the valuation of ARCB can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARCB is valued cheaper than 90.00% of the companies in the same industry.
ARCB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCB is valued cheaply inside the industry as 97.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARCB indicates a somewhat cheap valuation: ARCB is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.57 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
ARCB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ARCB's earnings are expected to grow with 14.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y9.15%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
ARCB has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 1.57, ARCB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, ARCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of ARCB grows each year by 7.80%, which is quite nice.
ARCB has been paying a dividend for at least 10 years, so it has a reliable track record.
ARCB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.8%
Div Incr Years0
Div Non Decr Years14
5.3 Sustainability
ARCB pays out 6.12% of its income as dividend. This is a sustainable payout ratio.
The dividend of ARCB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.12%
EPS Next 2Y9.15%
EPS Next 3Y14.61%
75.55
+0.96 (+1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners104.16%
Inst Owner Change0.76%
Ins Owners1.56%
Ins Owner Change4.6%
Market Cap1.73B
Analysts74.74
Price Target85.87 (13.66%)
Short Float %5.36%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend0.47
Dividend Growth(5Y)7.8%
DP6.12%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.45%
Min EPS beat(2)-2.59%
Max EPS beat(2)25.49%
EPS beat(4)1
Avg EPS beat(4)1.29%
Min EPS beat(4)-11.93%
Max EPS beat(4)25.49%
EPS beat(8)3
Avg EPS beat(8)3.19%
EPS beat(12)5
Avg EPS beat(12)0.5%
EPS beat(16)9
Avg EPS beat(16)5.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-3.87%
Max Revenue beat(2)-1.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.87%
Max Revenue beat(4)0.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.93%
Revenue beat(12)1
Avg Revenue beat(12)-3.19%
Revenue beat(16)3
Avg Revenue beat(16)-2.14%
PT rev (1m)5.47%
PT rev (3m)-26.27%
EPS NQ rev (1m)3.82%
EPS NQ rev (3m)-19.88%
EPS NY rev (1m)2.8%
EPS NY rev (3m)-22.07%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 10.08 | ||
| P/S | 0.42 | ||
| P/FCF | 29.57 | ||
| P/OCF | 6.72 | ||
| P/B | 1.34 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)5.46
EY7.23%
EPS(NY)7.49
Fwd EY9.92%
FCF(TTM)2.55
FCFY3.38%
OCF(TTM)11.24
OCFY14.88%
SpS179.38
BVpS56.53
TBVpS39.5
PEG (NY)N/A
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 13.83% | ||
| ROCE | 12.88% | ||
| ROIC | 10.01% | ||
| ROICexc | 10.59% | ||
| ROICexgc | 13.79% | ||
| OM | 5.59% | ||
| PM (TTM) | 4.36% | ||
| GM | 85.59% | ||
| FCFM | 1.42% |
ROA(3y)8.99%
ROA(5y)8.21%
ROE(3y)18.28%
ROE(5y)17.28%
ROIC(3y)12.49%
ROIC(5y)11.58%
ROICexc(3y)14.5%
ROICexc(5y)13.55%
ROICexgc(3y)19.98%
ROICexgc(5y)18.74%
ROCE(3y)16.08%
ROCE(5y)14.9%
ROICexcg growth 3Y-13.21%
ROICexcg growth 5Y12.17%
ROICexc growth 3Y-9.6%
ROICexc growth 5Y9.94%
OM growth 3Y-4.18%
OM growth 5Y15.74%
PM growth 3Y-8.1%
PM growth 5Y25.48%
GM growth 3Y3.29%
GM growth 5Y2.2%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 131.09% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.51% | ||
| Profit Quality | 32.67% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.78 |
F-Score7
WACC9.2%
ROIC/WACC1.09
Cap/Depr(3y)146.19%
Cap/Depr(5y)110.06%
Cap/Sales(3y)4.7%
Cap/Sales(5y)3.6%
Profit Quality(3y)58.32%
Profit Quality(5y)99.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.72%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-61.94%
EPS Next Y-19.46%
EPS Next 2Y9.15%
EPS Next 3Y14.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.69%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-6.69%
Revenue Next Year-1.55%
Revenue Next 2Y2.24%
Revenue Next 3Y2.77%
Revenue Next 5YN/A
EBIT growth 1Y15.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y23.77%
EBIT Next Year56.72%
EBIT Next 3Y31.29%
EBIT Next 5YN/A
FCF growth 1Y-81.88%
FCF growth 3Y-42.74%
FCF growth 5Y-7.52%
OCF growth 1Y-48.78%
OCF growth 3Y-4.02%
OCF growth 5Y10.91%