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. Both the health and profitability get an excellent rating, making ARCB a very profitable company, without any liquidiy or solvency issues. ARCB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARCB had positive earnings in the past year.
ARCB had a positive operating cash flow in the past year.
ARCB had positive earnings in each of the past 5 years.
ARCB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARCB has a Return On Assets of 7.44%. This is in the better half of the industry: ARCB outperforms 70.00% of its industry peers.
The Return On Equity of ARCB (13.83%) is better than 65.00% of its industry peers.
ARCB's Return On Invested Capital of 10.01% is amongst the best of the industry. ARCB outperforms 82.50% of its industry peers.
ARCB had an Average Return On Invested Capital over the past 3 years of 12.49%. This 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
ARCB's Profit Margin of 4.36% is in line compared to the rest of the industry. ARCB outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of ARCB has grown nicely.
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.
ARCB's Operating Margin has improved in the last couple of years.
ARCB has a Gross Margin of 85.59%. This is amongst the best in the industry. ARCB outperforms 97.50% of its industry peers.
In the last couple of years the Gross Margin of ARCB has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARCB is still creating some value.
The number of shares outstanding for ARCB has been reduced compared to 1 year ago.
The number of shares outstanding for ARCB has been reduced compared to 5 years ago.
Compared to 1 year ago, ARCB has an improved debt to assets ratio.
2.2 Solvency
ARCB has an Altman-Z score of 3.81. This indicates that ARCB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.81, ARCB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ARCB is 3.66, which is a good value as it means it would take ARCB, 3.66 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.11, ARCB belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.09
WACC9.2%
2.3 Liquidity
ARCB has a Current Ratio of 1.00. This is a normal value and indicates that ARCB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, ARCB perfoms like the industry average, outperforming 47.50% of the companies in the same 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
The earnings per share for ARCB have decreased strongly by -28.72% in the last year.
The Earnings Per Share has been growing by 18.61% on average over the past years. This is quite good.
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
ARCB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.61% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.00, the valuation of ARCB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ARCB indicates a rather cheap valuation: ARCB is cheaper than 85.00% of the companies listed in the same industry.
ARCB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.93, the valuation of ARCB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ARCB is valued cheaper than 90.00% of the companies in the same industry.
ARCB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
ARCB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARCB is cheaper than 95.00% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than ARCB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.06 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
ARCB has a very decent profitability rating, which may justify a higher PE ratio.
ARCB's earnings are expected to grow with 14.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y9.15%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
ARCB has a yearly dividend return of 0.64%, which is pretty low.
ARCB's Dividend Yield is comparable with the industry average which is at 1.55.
With a Dividend Yield of 0.64, ARCB pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
On average, the dividend of ARCB grows each year by 7.80%, which is quite nice.
ARCB has paid a dividend for at least 10 years, which is a reliable track record.
ARCB has not decreased their dividend for at least 10 years, which is a reliable track record.
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%
81.91
+4.9 (+6.36%)
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 Cap1.88B
Analysts74.74
Price Target85.87 (4.83%)
Short Float %6.09%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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)-21.33%
EPS NQ rev (1m)3.82%
EPS NQ rev (3m)-19.88%
EPS NY rev (1m)2.8%
EPS NY rev (3m)-19.25%
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 | 15 | ||
| Fwd PE | 10.93 | ||
| P/S | 0.46 | ||
| P/FCF | 32.06 | ||
| P/OCF | 7.29 | ||
| P/B | 1.45 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)5.46
EY6.67%
EPS(NY)7.49
Fwd EY9.15%
FCF(TTM)2.55
FCFY3.12%
OCF(TTM)11.24
OCFY13.72%
SpS179.38
BVpS56.53
TBVpS39.5
PEG (NY)N/A
PEG (5Y)0.81
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 | 3.81 |
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%