ARCBEST CORP (ARCB) Stock Fundamental Analysis
USA - NASDAQ:ARCB - US03937C1053 - Common Stock
71.75 USD
-0.33 (-0.46%)
71.87 USD
+0.12 (+0.17%)
ARCB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 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. ARCB is valued quite cheap, but it does not seem to be growing. 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.
ARCB had a positive operating cash flow in the past year.
ARCB had positive earnings in each of the past 5 years.
Each year in the past 5 years ARCB had a positive operating cash flow.
1.2 Ratios
ARCB has a better Return On Assets (6.40%) than 73.81% of its industry peers.
ARCB has a Return On Equity of 12.15%. This is in the better half of the industry: ARCB outperforms 69.05% of its industry peers.
With an excellent Return On Invested Capital value of 9.38%, ARCB belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARCB is above the industry average of 7.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 12.15% | ||
| ROIC | 9.38% |
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 of 3.90%. This is in the better half of the industry: ARCB outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of ARCB has grown nicely.
With a Operating Margin value of 5.38%, ARCB perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ARCB has grown nicely.
Looking at the Gross Margin, with a value of 85.27%, ARCB belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
ARCB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.38% | ||
| PM (TTM) | 3.9% | ||
| GM | 85.27% |
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
ARCB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ARCB has been reduced compared to 1 year ago.
ARCB has less shares outstanding than it did 5 years ago.
ARCB has a better debt/assets ratio than last year.
2.2 Solvency
ARCB has an Altman-Z score of 3.59. This indicates that ARCB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.59, ARCB is doing good in the industry, outperforming 73.81% of the companies in the same industry.
The Debt to FCF ratio of ARCB is 4.26, which is a neutral value as it means it would take ARCB, 4.26 years of fcf income to pay off all of its debts.
ARCB has a better Debt to FCF ratio (4.26) than 80.95% of its industry peers.
ARCB has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
ARCB has a better Debt to Equity ratio (0.13) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.05
WACC8.96%
2.3 Liquidity
ARCB has a Current Ratio of 0.96. This is a bad value and indicates that ARCB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.96, ARCB is in line with its industry, outperforming 42.86% of the companies in the same industry.
ARCB has a Quick Ratio of 0.96. This is a bad value and indicates that ARCB is not financially healthy enough and could expect problems in meeting its short term obligations.
ARCB has a Quick ratio of 0.96. This is comparable to the rest of the industry: ARCB outperforms 42.86% of its industry peers.
The current and quick ratio evaluation for ARCB is rather negative, while it does have 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 | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
ARCB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.25%.
The Earnings Per Share has been growing by 18.61% on average over the past years. This is quite good.
ARCB shows a decrease in Revenue. In the last year, the revenue decreased by -6.42%.
The Revenue has been growing slightly by 6.94% on average over the past years.
EPS 1Y (TTM)-40.25%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-31.31%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-5.16%
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 12.86% yearly.
Based on estimates for the next years, ARCB will show a small growth in Revenue. The Revenue will grow by 2.30% on average per year.
EPS Next Y-24.36%
EPS Next 2Y4.8%
EPS Next 3Y12.86%
EPS Next 5YN/A
Revenue Next Year-3.43%
Revenue Next 2Y0.73%
Revenue Next 3Y2.3%
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.
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 14.82, which indicates a correct valuation of ARCB.
ARCB's Price/Earnings ratio is rather cheap when compared to the industry. ARCB is cheaper than 88.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.55. ARCB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.39, which indicates a very decent valuation of ARCB.
ARCB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARCB is cheaper than 90.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARCB to the average of the S&P500 Index (23.04), we can say ARCB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCB is valued cheaper than 97.62% of the companies in the same industry.
ARCB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARCB is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.77 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
The excellent profitability rating of ARCB may justify a higher PE ratio.
ARCB's earnings are expected to grow with 12.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y4.8%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, ARCB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.61, ARCB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, ARCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 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 Years0
Div Non Decr Years14
5.3 Sustainability
ARCB pays out 7.08% 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.
DP7.08%
EPS Next 2Y4.8%
EPS Next 3Y12.86%
71.75
-0.33 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners103.51%
Inst Owner Change0%
Ins Owners1.54%
Ins Owner Change4.48%
Market Cap1.63B
Analysts76.84
Price Target90.41 (26.01%)
Short Float %3.67%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend0.48
Dividend Growth(5Y)8.44%
DP7.08%
Div Incr Years0
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.96%
Min EPS beat(2)-7.33%
Max EPS beat(2)-2.59%
EPS beat(4)1
Avg EPS beat(4)0.91%
Min EPS beat(4)-11.93%
Max EPS beat(4)25.49%
EPS beat(8)3
Avg EPS beat(8)5.56%
EPS beat(12)4
Avg EPS beat(12)-0.67%
EPS beat(16)8
Avg EPS beat(16)4.06%
Revenue beat(2)0
Avg Revenue beat(2)-3.99%
Min Revenue beat(2)-4.1%
Max Revenue beat(2)-3.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-4.1%
Max Revenue beat(4)-1.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.15%
Revenue beat(12)1
Avg Revenue beat(12)-3.05%
Revenue beat(16)2
Avg Revenue beat(16)-2.46%
PT rev (1m)-0.71%
PT rev (3m)5.29%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-8.97%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)-6.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.82 | ||
| Fwd PE | 10.39 | ||
| P/S | 0.4 | ||
| P/FCF | 28.77 | ||
| P/OCF | 7.03 | ||
| P/B | 1.25 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)4.84
EY6.75%
EPS(NY)6.91
Fwd EY9.63%
FCF(TTM)2.49
FCFY3.48%
OCF(TTM)10.2
OCFY14.22%
SpS178.36
BVpS57.21
TBVpS40.18
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 12.15% | ||
| ROCE | 12.07% | ||
| ROIC | 9.38% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 13.24% | ||
| OM | 5.38% | ||
| PM (TTM) | 3.9% | ||
| GM | 85.27% | ||
| FCFM | 1.4% |
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-Score5
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 4.26 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 111.95% | ||
| Cap/Sales | 4.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.92% | ||
| Profit Quality | 35.88% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.59 |
F-Score5
WACC8.96%
ROIC/WACC1.05
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)-40.25%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-31.31%
EPS Next Y-24.36%
EPS Next 2Y4.8%
EPS Next 3Y12.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-5.16%
Revenue Next Year-3.43%
Revenue Next 2Y0.73%
Revenue Next 3Y2.3%
Revenue Next 5YN/A
EBIT growth 1Y6.44%
EBIT growth 3Y-2.55%
EBIT growth 5Y23.82%
EBIT Next Year52.72%
EBIT Next 3Y30.49%
EBIT Next 5YN/A
FCF growth 1Y-70.55%
FCF growth 3Y-42.8%
FCF growth 5Y-7.58%
OCF growth 1Y-40.52%
OCF growth 3Y-4.04%
OCF growth 5Y10.9%