87.07 USD
+1.09 (+1.27%)
We assign a fundamental rating of 6 out of 10 to ARCB. ARCB was compared to 42 industry peers in the Ground Transportation industry. ARCB gets an excellent profitability rating and is at the same time showing great financial health properties. ARCB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year ARCB was profitable.
- In the past year ARCB had a positive cash flow from operations.
- ARCB had positive earnings in each of the past 5 years.
- ARCB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ARCB has a Return On Assets of 3.89%. This is in the better half of the industry: ARCB outperforms 64.29% of its industry peers.
- The Return On Equity of ARCB (7.35%) is comparable to the rest of the industry.
- The Return On Invested Capital of ARCB (5.23%) is better than 64.29% of its industry peers.
- ARCB had an Average Return On Invested Capital over the past 3 years of 12.49%. This is significantly above the industry average of 6.92%.
- The 3 year average ROIC (12.49%) for ARCB is well above the current ROIC(5.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.35% | ||
| ROIC | 5.23% |
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's Profit Margin of 2.41% is in line compared to the rest of the industry. ARCB outperforms 57.14% of its industry peers.
- In the last couple of years the Profit Margin of ARCB has grown nicely.
- ARCB has a Operating Margin (3.05%) which is comparable to the rest of the industry.
- ARCB's Operating Margin has improved in the last couple of years.
- ARCB has a better Gross Margin (85.00%) than 95.24% of its industry peers.
- ARCB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.05% | ||
| PM (TTM) | 2.41% | ||
| GM | 85% |
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.
- ARCB has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ARCB has been reduced compared to 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.
- The Altman-Z score of ARCB (3.59) is better than 76.19% of its industry peers.
- ARCB has a debt to FCF ratio of 3.23. This is a good value and a sign of high solvency as ARCB would need 3.23 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.23, ARCB belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- A Debt/Equity ratio of 0.10 indicates that ARCB is not too dependend on debt financing.
- The Debt to Equity ratio of ARCB (0.10) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 3.23 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.52
WACC10.01%
2.3 Liquidity
- A Current Ratio of 0.98 indicates that ARCB may have some problems paying its short term obligations.
- ARCB has a worse Current ratio (0.98) than 64.29% of its industry peers.
- A Quick Ratio of 0.98 indicates that ARCB may have some problems paying its short term obligations.
- The Quick ratio of ARCB (0.98) is worse than 61.90% 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 | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- ARCB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.28%.
- 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 -5.34%.
- 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)-37.28%
EPS 3Y-9.05%
EPS 5Y18.61%
EPS Q2Q%-10.98%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y1.64%
Revenue growth 5Y6.94%
Sales Q2Q%-1.41%
3.2 Future
- The Earnings Per Share is expected to grow by 5.48% on average over the next years.
- The Revenue is expected to grow by 1.72% on average over the next years.
EPS Next Y-39.39%
EPS Next 2Y-11.94%
EPS Next 3Y5.48%
EPS Next 5YN/A
Revenue Next Year-3.97%
Revenue Next 2Y-0.29%
Revenue Next 3Y1.72%
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 decreasing.
- 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
- With a Price/Earnings ratio of 18.68, ARCB is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of ARCB indicates a rather cheap valuation: ARCB is cheaper than 80.95% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ARCB to the average of the S&P500 Index (28.60), we can say ARCB is valued slightly cheaper.
- The Price/Forward Earnings ratio is 17.85, which indicates a rather expensive current valuation of ARCB.
- ARCB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARCB is cheaper than 83.33% 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 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ARCB is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ARCB is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.55 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
- The excellent profitability rating of ARCB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-11.94%
EPS Next 3Y5.48%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.52%, ARCB is not a good candidate for dividend investing.
- ARCB's Dividend Yield is comparable with the industry average which is at 0.69.
- Compared to an average S&P500 Dividend Yield of 1.82, ARCB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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 Years0
Div Non Decr Years14
5.3 Sustainability
- 11.09% of the earnings are spent on dividend by ARCB. This is a low number and sustainable payout ratio.
- ARCB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.09%
EPS Next 2Y-11.94%
EPS Next 3Y5.48%
ARCBEST CORP / ARCB FAQ
Can you provide the ChartMill fundamental rating for ARCBEST CORP?
ChartMill assigns a fundamental rating of 6 / 10 to ARCB.
What is the valuation status of ARCBEST CORP (ARCB) stock?
ChartMill assigns a valuation rating of 5 / 10 to ARCBEST CORP (ARCB). This can be considered as Fairly Valued.
What is the profitability of ARCB stock?
ARCBEST CORP (ARCB) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ARCBEST CORP (ARCB) stock?
The Price/Earnings (PE) ratio for ARCBEST CORP (ARCB) is 18.68 and the Price/Book (PB) ratio is 1.48.
What is the expected EPS growth for ARCBEST CORP (ARCB) stock?
The Earnings per Share (EPS) of ARCBEST CORP (ARCB) is expected to decline by -39.39% in the next year.