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ArcBest Corporation (ARCB)
NASDAQ:ARCB
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ArcBest
(NASDAQ:ARCB)63Neutral
Positive Factors
Earnings
ARCB reported 4Q adj. EPS of $1.33 above forecast and consensus.
Revenue
Revenue per hundredweight increased by 8%, which was a bright spot despite other metrics falling below expectations.
Negative Factors
Market Conditions
Management commentary on market conditions remained subdued, indicating challenges in the short term.
ArcBest (ARCB) vs. S&P 500 (SPY)
Market Cap
$1.72B
Dividend Yield0.64%
Average Volume (3M)335.19K
Price to Earnings (P/E)10.2
Beta (1Y)1.82
Revenue Growth-5.61%
EPS Growth40.21%
CountryUS
Employees15,000
SectorIndustrials
Sector Strength66
IndustryTransportation
Share Statistics
EPS (TTM)7.30
Shares Outstanding23,150,276
10 Day Avg. Volume418,994
30 Day Avg. Volume335,186
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)4.90
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$112.50Price Target Upside51.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
ArcBest Business Overview & Revenue Model
Company DescriptionArcBest Corporation is a leading logistics company that delivers integrated supply chain solutions. Headquartered in Fort Smith, Arkansas, ArcBest operates in the transportation and logistics sector, providing a range of services including less-than-truckload (LTL) shipping, ground expedite, truckload brokerage, managed transportation, and international freight forwarding. The company's robust service portfolio is designed to meet the diverse logistics needs of its customers across various industries.
How the Company Makes MoneyArcBest generates revenue primarily through its transportation and logistics services. The company makes money by offering LTL shipping services, which involve transporting smaller freight shipments that do not require a full truckload. This service is a significant revenue stream, leveraging ArcBest's extensive network to optimize cost efficiency for customers. Additionally, the company earns income from truckload brokerage services, where it acts as an intermediary between shippers and carriers to facilitate full truckload transportation. ArcBest also provides managed transportation services, which involve overseeing and optimizing the logistics operations of clients, further contributing to its revenue. International freight forwarding and ground expedite services, which cater to time-sensitive shipping needs, are other important components of its earnings. The company's strategic partnerships and investments in technology enhance its service offerings, supporting revenue growth and operational efficiency.
ArcBest Financial Statement Overview
Summary
ArcBest displays a commendable financial position with some areas needing attention. The income statement highlights operational efficiencies but raises concerns over declining revenue. The balance sheet is robust with a low leverage ratio and a healthy equity position. However, cash flow concerns need addressing to ensure sustainable growth. Overall, ArcBest is financially stable but should focus on reviving revenue growth and improving free cash flow.Income Statement
The company has shown a mixed performance in its income statement. The Gross Profit Margin improved significantly in the TTM to 30.35% from a lower margin in the previous year, indicating better cost management. The Net Profit Margin for the TTM stood at 4.14%, a slight improvement from the previous annual period, showing a modest profitability level. However, the Revenue Growth Rate declined by 5.61% from 2023 to TTM, which is a concern for future growth. The EBIT Margin and EBITDA Margin are healthy at 6.12% and 8.03% respectively, showing operational efficiency.68
Positive
Balance Sheet
ArcBest maintains a strong balance sheet with a Debt-to-Equity Ratio of 0.22 in the TTM, which is relatively low, indicating conservative leverage practices. The Return on Equity (ROE) improved to 13.17% in the TTM, reflecting efficient utilization of shareholder funds. The Equity Ratio is solid at 54.09%, showcasing a strong equity base relative to total assets. Overall, the company appears financially stable with a strong equity position.75
Positive
Cash Flow
Cash flow performance presents a mixed picture. The Free Cash Flow decreased to $46.77 million in the TTM from $90.17 million in 2023, indicating a significant reduction in cash available after capital expenditures. The Operating Cash Flow to Net Income Ratio is strong at 1.32, suggesting good cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is moderate at 0.27, pointing to a potential constraint in cash flow generation relative to net profits.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.18B | 4.43B | 5.32B | 3.98B | 2.94B | Gross Profit |
| 4.18B | 378.43M | 578.59M | 639.28M | 228.13M | EBIT |
| 244.43M | 172.62M | 399.27M | 280.99M | 98.28M | EBITDA |
| 244.43M | 341.36M | 534.19M | 410.28M | 222.58M | Net Income Common Stockholders |
| 173.96M | 142.16M | 298.21M | 213.52M | 71.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 157.20M | 330.07M | 326.03M | 124.96M | 369.36M | Total Assets |
| 2.43B | 2.49B | 2.49B | 2.11B | 1.78B | Total Debt |
| 288.32M | 437.73M | 438.68M | 337.11M | 403.55M | Net Debt |
| 160.88M | 175.50M | 280.30M | 260.49M | 99.59M | Total Liabilities |
| 1.12B | 1.24B | 1.34B | 1.18B | 950.41M | Stockholders Equity |
| 1.31B | 1.24B | 1.15B | 929.07M | 828.59M |
| Cash Flow | Free Cash Flow | |||
| 62.74M | 90.17M | 305.31M | 245.04M | 148.50M | Operating Cash Flow |
| 285.85M | 322.17M | 470.82M | 323.51M | 205.99M | Investing Cash Flow |
| -187.28M | -21.70M | -261.08M | -303.20M | 7.46M | Financing Cash Flow |
| -233.35M | -196.61M | -127.98M | -247.65M | -111.41M |
ArcBest Technical Analysis
Negative
74.17
Price Trends
93.13
Negative
100.48
Negative
104.37
Negative
Market Momentum
-5.36
Positive
22.71
Positive
6.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCB, the sentiment is Negative. The current price of 74.17 is below the 20-day moving average (MA) of 88.24, below the 50-day MA of 93.13, and below the 200-day MA of 104.37, indicating a bearish trend. The MACD of -5.36 indicates Positive momentum. The RSI at 22.71 is Positive, neither overbought nor oversold. The STOCH value of 6.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARCB.
ArcBest Risk Analysis
ArcBest disclosed 30 risk factors in its most recent earnings report. ArcBest reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ArcBest Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $37.19B | 31.94 | 27.94% | 0.60% | -0.88% | -2.79% | |
67 Neutral | $5.46B | 28.02 | 20.15% | 0.91% | -9.13% | -25.11% | |
67 Neutral | $10.58B | 29.39 | 15.67% | ― | 11.37% | 1.82% | |
65 Neutral | $15.76B | 28.37 | 14.22% | 1.10% | -5.79% | -20.32% | |
63 Neutral | $1.72B | 10.19 | 13.24% | 0.64% | -5.61% | 40.21% | |
62 Neutral | $7.76B | 66.01 | 1.65% | 1.30% | 3.76% | -46.10% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
ARCB
ArcBest
74.17
-65.82
-47.02%
JBHT
JB Hunt
157.62
-40.48
-20.43%
KNX
Knight Transportation
47.88
-6.99
-12.74%
LSTR
Landstar System
154.52
-26.94
-14.85%
ODFL
Old Dominion Freight
175.00
-39.17
-18.29%
SAIA
Saia
397.14
-207.63
-34.33%
ArcBest Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -21.42% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call reflects mixed results for ArcBest in the fourth quarter of 2024. While the company achieved significant improvements in operating ratio and pipeline growth, it faced challenges with decreased revenue, lower daily shipments, and losses in the Asset-Light segment. Continued investments in cost savings and employee training are positive, but overall financial performance was impacted by a challenging market environment.Highlights
Improved Non-GAAP Operating Ratio
ArcBest's full year ABS non-GAAP operating ratio for 2024 was 91.2%, marking a 670 basis point improvement since 2016. Adjusting for union pension costs, the operating ratio compares favorably to peers.
Pipeline Growth
ArcBest achieved a 55% increase in their overall pipeline in 2024, with a clear plan to accelerate this even further.
Cost Savings and Productivity Improvements
Deployed training and compliance teams to 15 facilities, resulting in $12 million in savings. Continued focus on optimization, innovation, and training to drive further improvements.
Strong Recognition and Employee Investment
Recognized as one of America's Best Large Employers by Forbes and U.S. News, with ongoing investments in employee training and development.
Lowlights
Decreased Revenue and Income
Consolidated revenue decreased by 8% from last year's fourth quarter to $1 billion. Non-GAAP operating income from continuing operations was $41 million, down from $82 million in the prior year.
Asset-Based Segment Challenges
Fourth quarter revenue was $656 million, a per-day decrease of 8%. ABS non-GAAP operating ratio was 92%, increasing by 430 basis points over the previous year.
Asset-Light Segment Losses
Asset-Light segment reported a non-GAAP operating loss of $6 million, $5 million worse than the prior year, due to soft freight market and lower revenue per shipment.
Decline in Daily Shipments
Daily shipments saw a decline of 1% year-over-year, with weight per shipment decreasing by 6%, resulting in a 7% decrease in tons per day compared to the previous year.
Impact of Soft Freight Market
Continued reduction in heavier-weight LTL shipments due to the ongoing soft freight market and low truckload prices.
Company Guidance
During the ArcBest Fourth Quarter 2024 Earnings Conference Call, the company provided detailed guidance and metrics reflecting their performance and strategic initiatives. ArcBest reported a non-GAAP operating ratio of 91.2% for 2024, marking a 670 basis point improvement since 2016. Their Asset-Based segment showed a full-year non-GAAP operating ratio of 92%, with union employees qualifying for a 1% profit-sharing bonus. The consolidated revenue for the fourth quarter was $1 billion, down 8% year-over-year, with the Asset-Based segment contributing $656 million. The company's adjusted earnings per share were $1.33, compared to $2.47 in the fourth quarter of 2023. ArcBest achieved a 55% increase in its overall sales pipeline in 2024 and plans to continue this momentum into 2025 by focusing on organizational changes and enhancing customer service. Their capital expenditures for 2025 are estimated to range from $225 million to $275 million, aimed at expanding their network and improving service efficiency. The company also highlighted ongoing investments in technology and training to drive further operational efficiencies.ArcBest Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
ArcBest Announces Leadership Changes to Drive Growth
Positive
Jan 16, 2025
On January 16, 2025, ArcBest announced leadership and organizational changes effective February 1, 2025, to support its strategic priorities and long-term growth. Key changes include Dennis L. Anderson becoming Chief Innovation Officer, Christopher Adkins taking on the role of Chief Strategy Officer, and Eddie Sorg becoming Chief Commercial Officer. These updates aim to enhance operational efficiency, customer experience, and align revenue-generating functions, with an emphasis on innovation and strategic management. Steven Leonard, the current Chief Commercial Officer, plans to retire in June 2025 after 24 years with the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.