ARCBEST CORP (ARCB) Stock Fundamental Analysis
NASDAQ:ARCB - Nasdaq - US03937C1053 - Common Stock - Currency: USD
ARCB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 industry peers in the Ground Transportation industry. ARCB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on ARCB. With these ratings, ARCB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
ARCB had positive earnings in the past year.
In the past year ARCB had a positive cash flow from operations.
In the past 5 years ARCB has always been profitable.
ARCB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARCB's Return On Assets of 7.16% is fine compared to the rest of the industry. ARCB outperforms 72.50% of its industry peers.
The Return On Equity of ARCB (13.24%) is comparable to the rest of the industry.
ARCB's Return On Invested Capital of 10.81% is amongst the best of the industry. ARCB outperforms 82.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARCB is above the industry average of 7.89%.
| 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 Profit Margin (4.16%) which is comparable to the rest of the industry.
ARCB's Profit Margin has improved in the last couple of years.
The Operating Margin of ARCB (5.88%) is comparable to the rest of the industry.
ARCB's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 85.77%, ARCB belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
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.
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.
Compared to 1 year ago, ARCB has an improved debt to assets ratio.
2.2 Solvency
ARCB has an Altman-Z score of 3.64. This indicates that ARCB is financially healthy and has little risk of bankruptcy at the moment.
ARCB has a better Altman-Z score (3.64) than 77.50% of its industry peers.
ARCB has a debt to FCF ratio of 4.13. This is a neutral value as ARCB would need 4.13 years to pay back of all of its debts.
ARCB's Debt to FCF ratio of 4.13 is fine compared to the rest of the industry. ARCB outperforms 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.10, ARCB belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.22
WACC8.85%
2.3 Liquidity
ARCB has a Current Ratio of 1.01. This is a normal value and indicates that ARCB is financially healthy and should not expect problems in meeting its short term obligations.
ARCB's Current ratio of 1.01 is in line compared to the rest of the industry. ARCB outperforms 42.50% of its industry peers.
ARCB has a Quick Ratio of 1.01. This is a normal value and indicates that ARCB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ARCB (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
ARCB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.38%.
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 -5.61% in the last year.
The Revenue has been growing slightly by 6.94% on average over the past years.
EPS 1Y (TTM)-20.38%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-46.15%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-8.07%
3.2 Future
Based on estimates for the next years, ARCB will show a very strong growth in Earnings Per Share. The EPS will grow by 20.31% on average per year.
Based on estimates for the next years, ARCB will show a small growth in Revenue. The Revenue will grow by 4.53% on average per year.
EPS Next Y-0.26%
EPS Next 2Y22.31%
EPS Next 3Y20.31%
EPS Next 5YN/A
Revenue Next Year1.97%
Revenue Next 2Y4.54%
Revenue Next 3Y4.53%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 9.70, which indicates a very decent valuation of ARCB.
ARCB's Price/Earnings ratio is rather cheap when compared to the industry. ARCB is cheaper than 90.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARCB to the average of the S&P500 Index (28.29), we can say ARCB is valued rather cheaply.
ARCB is valuated reasonably with a Price/Forward Earnings ratio of 9.72.
ARCB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARCB is cheaper than 87.50% 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.72 |
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.
67.50% 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 | 30.8 | ||
| EV/EBITDA | 3.58 |
4.3 Compensation for Growth
The decent profitability rating of ARCB may justify a higher PE ratio.
ARCB's earnings are expected to grow with 20.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y22.31%
EPS Next 3Y20.31%
5. Dividend
5.1 Amount
ARCB has a yearly dividend return of 0.76%, which is pretty low.
The stock price of ARCB dropped by -39.13% 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 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.57, ARCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of ARCB grows each year by 8.44%, which is quite nice.
ARCB has paid a dividend for at least 10 years, which is 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)8.44%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
6.49% of the earnings are spent on dividend by ARCB. This is a low number and sustainable payout ratio.
ARCB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.49%
EPS Next 2Y22.31%
EPS Next 3Y20.31%
60.99
+2.38 (+4.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners102.32%
Inst Owner Change0%
Ins Owners1.15%
Ins Owner Change-1.3%
Market Cap1.41B
Analysts75
Price Target107.78 (76.72%)
Short Float %6.51%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)-7.46%
PT rev (3m)-13.62%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-46.48%
EPS NY rev (1m)-3.49%
EPS NY rev (3m)-21.34%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.72 | ||
| P/S | 0.34 | ||
| P/FCF | 30.8 | ||
| P/OCF | 4.94 | ||
| P/B | 1.07 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)6.29
EY10.31%
EPS(NY)6.27
Fwd EY10.29%
FCF(TTM)1.98
FCFY3.25%
OCF(TTM)12.35
OCFY20.25%
SpS180.52
BVpS56.78
TBVpS39.78
PEG (NY)N/A
PEG (5Y)0.52
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 | 3.64 |
F-Score6
WACC8.85%
ROIC/WACC1.22
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)-20.38%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-46.15%
EPS Next Y-0.26%
EPS Next 2Y22.31%
EPS Next 3Y20.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-8.07%
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%