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Analyzing the Quality Characteristics of ARCBEST CORP (NASDAQ:ARCB).

By Mill Chart

Last update: Oct 31, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ARCBEST CORP (NASDAQ:ARCB) is suited for quality investing. Investors should of course do their own research, but we spotted ARCBEST CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of ARCBEST CORP

  • 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.
  • With a notable ROIC excluding cash and goodwill at 16.65%, ARCBEST CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 1.21, ARCBEST CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of ARCBEST CORP stands at 179.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of ARCBEST CORP has been remarkable, with 44.33% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • The EBIT 5-year growth of ARCBEST CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NASDAQ:ARCB

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ARCB. ARCB was compared to 38 industry peers in the Ground Transportation industry. ARCB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARCB has a valuation in line with the averages, but on the other hand it scores bad on growth.

Our latest full fundamental report of ARCB contains the most current fundamental analsysis.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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