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 39 industry peers in the Ground Transportation industry. ARCB scores excellent on profitability, but there are some minor concerns on its financial health. ARCB is not valued too expensively and it also shows a decent growth rate.
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's Return On Assets of 8.02% is fine compared to the rest of the industry. ARCB outperforms 73.68% of its industry peers.
ARCB's Return On Equity of 14.82% is fine compared to the rest of the industry. ARCB outperforms 60.53% of its industry peers.
ARCB has a better Return On Invested Capital (12.37%) than 89.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.02% | ||
| ROE | 14.82% | ||
| ROIC | 12.37% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ARCB has a Profit Margin (4.54%) 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 (6.53%) is comparable to the rest of the industry.
ARCB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 85.74%, ARCB belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
ARCB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.53% | ||
| PM (TTM) | 4.54% | ||
| GM | 85.74% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARCB is creating some value.
ARCB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.11 indicates that ARCB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.11, ARCB belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
The Debt to FCF ratio of ARCB is 2.22, which is a good value as it means it would take ARCB, 2.22 years of fcf income to pay off all of its debts.
ARCB has a Debt to FCF ratio of 2.22. This is amongst the best in the industry. ARCB outperforms 84.21% of its industry peers.
ARCB has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
ARCB's Debt to Equity ratio of 0.09 is fine compared to the rest of the industry. ARCB outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 4.11 |
ROIC/WACC1.33
WACC9.3%
2.3 Liquidity
A Current Ratio of 1.04 indicates that ARCB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.04, ARCB perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that ARCB should not have too much problems paying its short term obligations.
ARCB has a Quick ratio (1.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
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%.
Measured over the past years, ARCB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.61% on average per year.
Looking at the last year, ARCB shows a decrease in Revenue. The Revenue has decreased by -5.61% in the last year.
Measured over the past years, ARCB shows a small growth in Revenue. The Revenue has been growing by 6.94% on average per year.
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 21.00% on average per year.
Based on estimates for the next years, ARCB will show a small growth in Revenue. The Revenue will grow by 5.30% on average per year.
EPS Next Y3.35%
EPS Next 2Y23.34%
EPS Next 3Y21%
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y4.89%
Revenue Next 3Y5.3%
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.
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
The Price/Earnings ratio is 13.56, which indicates a correct valuation of ARCB.
ARCB's Price/Earnings ratio is rather cheap when compared to the industry. ARCB is cheaper than 84.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. ARCB is valued rather cheaply when compared to this.
ARCB is valuated correctly with a Price/Forward Earnings ratio of 13.12.
Based on the Price/Forward Earnings ratio, ARCB is valued a bit cheaper than 78.95% of the companies in the same industry.
ARCB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCB is valued cheaper than 97.37% of the companies in the same industry.
76.32% 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 | 24.41 | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ARCB may justify a higher PE ratio.
A more expensive valuation may be justified as ARCB's earnings are expected to grow with 21.00% in the coming years.
PEG (NY)4.04
PEG (5Y)0.73
EPS Next 2Y23.34%
EPS Next 3Y21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, ARCB is not a good candidate for dividend investing.
In the last 3 months the price of ARCB has falen by -22.42%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ARCB's Dividend Yield is comparable with the industry average which is at 1.35.
With a Dividend Yield of 0.51, ARCB pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
On average, the dividend of ARCB grows each year by 8.58%, which is quite nice.
ARCB has been paying a dividend for at least 10 years, so it has a reliable track record.
ARCB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.58%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
ARCB pays out 5.85% 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.
DP5.85%
EPS Next 2Y23.34%
EPS Next 3Y21%
85.27
-4.17 (-4.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryGround Transportation
Earnings (Last)
Earnings (Next)
Inst Owners104.89%
Inst Owner Change-0.38%
Ins Owners1.08%
Ins Owner Change-1.69%
Market Cap1.99B
Analysts74.74
Price Target121.55 (42.55%)
Short Float %6.36%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0.48
Dividend Growth(5Y)8.58%
DP5.85%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.87%
Min EPS beat(2)-11.93%
Max EPS beat(2)-5.81%
EPS beat(4)1
Avg EPS beat(4)-5.53%
Min EPS beat(4)-14%
Max EPS beat(4)9.61%
EPS beat(8)2
Avg EPS beat(8)-2.98%
EPS beat(12)6
Avg EPS beat(12)3.81%
EPS beat(16)10
Avg EPS beat(16)8.84%
Revenue beat(2)1
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)0.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)0.08%
Revenue beat(8)1
Avg Revenue beat(8)-2.59%
Revenue beat(12)2
Avg Revenue beat(12)-2.42%
Revenue beat(16)5
Avg Revenue beat(16)-1.81%
PT rev (1m)-2.59%
PT rev (3m)-2.92%
EPS NQ rev (1m)-6.1%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)-18.5%
EPS NY rev (3m)-19.61%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-1.95%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.56 | ||
| Fwd PE | 13.12 | ||
| P/S | 0.47 | ||
| P/FCF | 24.41 | ||
| P/OCF | 5.57 | ||
| P/B | 1.52 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 4.77 |
EPS(TTM)6.29
EY7.38%
EPS(NY)6.5
Fwd EY7.62%
FCF(TTM)3.49
FCFY4.1%
OCF(TTM)15.3
OCFY17.95%
SpS183.21
BVpS56.12
TBVpS39.1
PEG (NY)4.04
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.02% | ||
| ROE | 14.82% | ||
| ROCE | 15.93% | ||
| ROIC | 12.37% | ||
| ROICexc | 13.89% | ||
| ROICexgc | 18.63% | ||
| OM | 6.53% | ||
| PM (TTM) | 4.54% | ||
| GM | 85.74% | ||
| FCFM | 1.91% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score7
Asset Turnover1.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 186.94% | ||
| Cap/Sales | 6.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.74% | ||
| Profit Quality | 41.99% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.11 |
F-Score7
WACC9.3%
ROIC/WACC1.33
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 Y3.35%
EPS Next 2Y23.34%
EPS Next 3Y21%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-8.07%
Revenue Next Year2.73%
Revenue Next 2Y4.89%
Revenue Next 3Y5.3%
Revenue Next 5YN/A
EBIT growth 1Y61.62%
EBIT growth 3Y-2.55%
EBIT growth 5Y23.82%
EBIT Next Year72.59%
EBIT Next 3Y35.74%
EBIT Next 5YN/A
FCF growth 1Y-19.06%
FCF growth 3Y-42.8%
FCF growth 5Y-7.58%
OCF growth 1Y13.08%
OCF growth 3Y-4.04%
OCF growth 5Y10.9%