ARCBEST CORP (ARCB) Stock Fundamental Analysis
NASDAQ:ARCB - Nasdaq - US03937C1053 - Common Stock - Currency: USD
Overall ARCB gets a fundamental rating of 7 out of 10. We evaluated ARCB against 41 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 is valued quite cheap, but it does not seem to be growing. These ratings could make ARCB a good candidate for value investing.
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.
In the past 5 years ARCB always reported a positive cash flow from operatings.
1.2 Ratios
ARCB's Return On Assets of 7.16% is fine compared to the rest of the industry. ARCB outperforms 70.73% of its industry peers.
ARCB's Return On Equity of 13.24% is fine compared to the rest of the industry. ARCB outperforms 63.41% of its industry peers.
ARCB has a Return On Invested Capital of 10.81%. This is amongst the best in the industry. ARCB outperforms 85.37% 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 8.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 13.24% | ||
| ROIC | 10.81% |
ROA(3y)8.99%
ROA(5y)8.22%
ROE(3y)18.29%
ROE(5y)17.29%
ROIC(3y)12.49%
ROIC(5y)11.58%
1.3 Margins
ARCB has a better Profit Margin (4.16%) than 63.41% of its industry peers.
In the last couple of years the Profit Margin of ARCB has grown nicely.
The Operating Margin of ARCB (5.88%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARCB has grown nicely.
ARCB has a Gross Margin of 85.77%. This is amongst the best in the industry. ARCB outperforms 97.56% of its industry peers.
In the last couple of years the Gross Margin of ARCB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.88% | ||
| PM (TTM) | 4.16% | ||
| GM | 85.77% |
OM growth 3Y-4.12%
OM growth 5Y15.78%
PM growth 3Y-8.11%
PM growth 5Y25.47%
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.
ARCB has less shares outstanding than it did 1 year ago.
ARCB has less shares outstanding than it did 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 3.60. 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 3.60, ARCB is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
The Debt to FCF ratio of ARCB is 4.13, which is a neutral value as it means it would take ARCB, 4.13 years of fcf income to pay off all of its debts.
ARCB has a better Debt to FCF ratio (4.13) than 78.05% of its industry peers.
ARCB has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
ARCB's Debt to Equity ratio of 0.10 is amongst the best of the industry. ARCB outperforms 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.24
WACC8.73%
2.3 Liquidity
A Current Ratio of 1.01 indicates that ARCB should not have too much problems paying its short term obligations.
ARCB has a Current ratio (1.01) which is in line with its industry peers.
A Quick Ratio of 1.01 indicates that ARCB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.01, ARCB perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
ARCB does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for ARCB have decreased strongly by -28.72% in the last year.
ARCB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.61% yearly.
ARCB shows a decrease in Revenue. In the last year, the revenue decreased by -5.61%.
ARCB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.94% yearly.
EPS 1Y (TTM)-28.72%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-61.94%
Revenue 1Y (TTM)-5.61%
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 18.31% yearly.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y-8.77%
EPS Next 2Y17.83%
EPS Next 3Y18.31%
EPS Next 5YN/A
Revenue Next Year1.97%
Revenue Next 2Y4.54%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 11.36, which indicates a very decent valuation of ARCB.
Based on the Price/Earnings ratio, ARCB is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARCB to the average of the S&P500 Index (28.22), we can say ARCB is valued rather cheaply.
A Price/Forward Earnings ratio of 7.10 indicates a rather cheap valuation of ARCB.
Based on the Price/Forward Earnings ratio, ARCB is valued cheaper than 95.12% of the companies in the same industry.
ARCB is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCB is valued cheaper than 100.00% of the companies in the same industry.
63.41% 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 | 31.15 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
ARCB has an outstanding 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 18.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y17.83%
EPS Next 3Y18.31%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, ARCB is not a good candidate for dividend investing.
The stock price of ARCB dropped by -35.14% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.71, ARCB pays a bit more dividend than 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 | 0.83% |
5.2 History
The dividend of ARCB is nicely growing with an annual growth rate of 8.44%!
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)8.44%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
ARCB pays out 6.49% of its income as dividend. This is a sustainable payout ratio.
ARCB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.49%
EPS Next 2Y17.83%
EPS Next 3Y18.31%
62.01
+4.2 (+7.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners102.32%
Inst Owner Change0.43%
Ins Owners1.15%
Ins Owner Change-1.3%
Market Cap1.43B
Analysts74.74
Price Target96.62 (55.81%)
Short Float %4.97%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.48
Dividend Growth(5Y)8.44%
DP6.49%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.78%
Min EPS beat(2)-11.93%
Max EPS beat(2)25.49%
EPS beat(4)1
Avg EPS beat(4)-1.56%
Min EPS beat(4)-14%
Max EPS beat(4)25.49%
EPS beat(8)3
Avg EPS beat(8)0.83%
EPS beat(12)6
Avg EPS beat(12)4.08%
EPS beat(16)10
Avg EPS beat(16)10.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-1.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)0.08%
Revenue beat(8)1
Avg Revenue beat(8)-2.44%
Revenue beat(12)1
Avg Revenue beat(12)-2.98%
Revenue beat(16)4
Avg Revenue beat(16)-1.9%
PT rev (1m)-17.04%
PT rev (3m)-22.57%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-46.8%
EPS NY rev (1m)-8.54%
EPS NY rev (3m)-28.06%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 7.1 | ||
| P/S | 0.34 | ||
| P/FCF | 31.15 | ||
| P/OCF | 5 | ||
| P/B | 1.09 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)5.46
EY8.81%
EPS(NY)8.73
Fwd EY14.08%
FCF(TTM)1.99
FCFY3.21%
OCF(TTM)12.41
OCFY20.02%
SpS181.46
BVpS57.07
TBVpS39.99
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 13.24% | ||
| ROCE | 13.93% | ||
| ROIC | 10.81% | ||
| ROICexc | 11.87% | ||
| ROICexgc | 15.72% | ||
| OM | 5.88% | ||
| PM (TTM) | 4.16% | ||
| GM | 85.77% | ||
| FCFM | 1.1% |
ROA(3y)8.99%
ROA(5y)8.22%
ROE(3y)18.29%
ROE(5y)17.29%
ROIC(3y)12.49%
ROIC(5y)11.58%
ROICexc(3y)14.5%
ROICexc(5y)13.54%
ROICexgc(3y)19.97%
ROICexgc(5y)18.73%
ROCE(3y)16.08%
ROCE(5y)14.9%
ROICexcg growth 3Y-13.17%
ROICexcg growth 5Y12.2%
ROICexc growth 3Y-9.54%
ROICexc growth 5Y9.98%
OM growth 3Y-4.12%
OM growth 5Y15.78%
PM growth 3Y-8.11%
PM growth 5Y25.47%
GM growth 3Y3.29%
GM growth 5Y2.2%
F-Score6
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 4.13 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 160.98% | ||
| Cap/Sales | 5.74% | ||
| Interest Coverage | 28.89 | ||
| Cash Conversion | 72.42% | ||
| Profit Quality | 26.35% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 3.6 |
F-Score6
WACC8.73%
ROIC/WACC1.24
Cap/Depr(3y)146.13%
Cap/Depr(5y)110.02%
Cap/Sales(3y)4.7%
Cap/Sales(5y)3.6%
Profit Quality(3y)58.29%
Profit Quality(5y)99.7%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.72%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-61.94%
EPS Next Y-8.77%
EPS Next 2Y17.83%
EPS Next 3Y18.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-6.69%
Revenue Next Year1.97%
Revenue Next 2Y4.54%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
EBIT growth 1Y24.4%
EBIT growth 3Y-2.55%
EBIT growth 5Y23.82%
EBIT Next Year71.99%
EBIT Next 3Y35.1%
EBIT Next 5YN/A
FCF growth 1Y-49.16%
FCF growth 3Y-42.8%
FCF growth 5Y-7.58%
OCF growth 1Y-11.27%
OCF growth 3Y-4.04%
OCF growth 5Y10.9%