ArcBest (ARCB) AI Stock Analysis

• Market Cap: $1.90B
• Dividend Yield: 0.58%
• Average Volume (3M): 364.56K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.48
• Revenue Growth: -5.69%
• EPS Growth: 51.78%
• Country: US
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Trucking
• EPS (TTM): 0.51
• Shares Outstanding: 22,911,352
• 10 Day Avg. Volume: 521,802
• 30 Day Avg. Volume: 364,562
• PEG Ratio: 0.13
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.64
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 7.12
• Enterprise Value/Ebitda: 1.38
• 1Y Price Target: $82.91
• Price Target Upside: -0.14% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: $89.00 ▲(7.19%Upside)

ArcBest's overall stock score is driven by a stable financial position and undervaluation compared to peers. However, technical indicators show potential volatility, and mixed earnings call data reflect economic challenges impacting revenue and profitability. Strategic improvements could enhance long-term prospects.

Positive Factors

Business Performance

Volumes have shown improvement, with tons per day increasing beyond initial expectations.

Customer Base

Momentum in share gains with core customers is mitigating core yield pressure.

Earnings

The analyst's recommendation for ARCB shares was raised to Neutral from Underperform, indicating an improved outlook.

Negative Factors

Financial Performance

ArcBest posted adjusted 1Q25 EPS of $0.51, down 62% from $1.34 a year ago, below analyst expectations, yet in-line with the Street.

Market Conditions

There is ongoing softness in sectors like manufacturing and household goods, affecting overall business performance.

Revenue

Revenue declines accelerated in April, driven by an increase in shipments from customers with easier-to-handle freight which generally have a lower yield profile.

ArcBest Business Overview & Revenue Model

Company Description

ArcBest Corporation provides freight transportation and integrated logistics services. It operates through three segments: Asset-Based, ArcBest, and FleetNet. The Asset-Based segment transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, nonbulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products through less-than-truckload services. It also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The ArcBest segment provides expedite freight transportation services to commercial and government customers; premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; and international freight transportation with air, ocean, and ground services. It also offers third-party transportation brokerage services by sourcing various capacity solutions, including dry van over the road and intermodal, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment; full-container and less-than-container load ocean transportation services; warehousing and distribution services; managed transportation services; and moving services to 'do-it-yourself' consumer, as well as provides final mile, time critical, product launch, warehousing, retail logistics, supply chain optimization, and trade show shipping services. The FleetNet segment provides roadside repair solutions and vehicle maintenance management services for commercial and private fleets through a network of third-party service providers. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. ArcBest Corporation was founded in 1923 and is headquartered in Fort Smith, Arkansas.

How the Company Makes Money

ArcBest makes money through a diversified revenue model primarily driven by its core logistics and transportation services. The company's key revenue streams include less-than-truckload (LTL) freight services, where it generates income by transporting smaller shipments that do not require a full truckload. Additionally, ArcBest earns revenue from its truckload brokerage services, facilitating the movement of full truckloads by connecting shippers with carriers. Managed transportation and supply chain optimization services provide another significant revenue stream, offering end-to-end logistics solutions and strategic planning to improve supply chain efficiency for clients. ArcBest's earnings are further supported by strategic partnerships and a strong network of carriers, enabling the company to offer competitive and reliable services in the logistics market.

ArcBest Financial Statement Overview

Summary

ArcBest's financial statements reflect stable financial health with effective cost management and strong equity backing. However, profitability margins and cash flow generation could be improved to enhance financial performance.

Income Statement

ArcBest's income statement shows a solid gross profit margin of 30.2% in TTM (Trailing-Twelve-Months), indicating effective cost management. However, the net profit margin of 4.4% suggests room for improvement in profitability. The revenue growth has been volatile, with a 6.3% decline from 2022 to 2023, but recent trends suggest stabilization. The EBIT margin of 5.7% and EBITDA margin of 8.5% point to moderate operating efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 53.8%, indicating financial stability. The debt-to-equity ratio is 0.24, showcasing prudent leverage. Return on equity stands at 13.9%, which is healthy but could be enhanced. Overall, the balance sheet demonstrates sound financial management with a low risk of over-leverage.

Cash Flow

Cash flow statements reveal a robust operating cash flow to net income ratio of 1.43 in TTM, highlighting efficient cash conversion. However, free cash flow growth has been inconsistent, reflected in a modest free cash flow to net income ratio of 0.34. The company's ability to generate cash remains stable, but opportunities for improving free cash flow exist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.11B	4.18B	4.43B	5.32B	3.98B	2.94B
Gross Profit	281.41M	350.00M	378.43M	578.59M	639.28M	228.13M
EBITDA	349.03M	376.78M	341.36M	534.19M	410.28M	222.58M
Net Income	179.40M	173.96M	142.16M	298.21M	213.52M	71.10M
Balance Sheet
Total Assets	2.41B	2.43B	2.49B	2.49B	2.11B	1.78B
Cash, Cash Equivalents and Short-Term Investments	98.67M	157.20M	330.07M	326.03M	124.96M	369.36M
Total Debt	315.38M	413.48M	437.73M	438.68M	337.11M	403.55M
Total Liabilities	1.11B	1.12B	1.24B	1.34B	1.18B	950.41M
Stockholders Equity	1.29B	1.31B	1.24B	1.15B	929.07M	828.59M
Cash Flow
Free Cash Flow	61.22M	45.85M	90.17M	305.31M	245.04M	148.50M
Operating Cash Flow	257.06M	285.85M	322.17M	470.82M	323.51M	205.99M
Investing Cash Flow	-139.42M	-187.28M	-21.70M	-261.08M	-303.20M	7.46M
Financing Cash Flow	-216.37M	-233.35M	-196.61M	-127.98M	-247.65M	-111.41M

ArcBest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCB, the sentiment is Positive. The current price of 83.03 is above the 20-day moving average (MA) of 72.14, above the 50-day MA of 66.67, and below the 200-day MA of 87.08, indicating a neutral trend. The MACD of 4.27 indicates Negative momentum. The RSI at 75.17 is Negative, neither overbought nor oversold. The STOCH value of 89.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARCB.

ArcBest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULH	70 Outperform	$757.87M	9.09	13.57%	1.48%	1.16%	-30.78%
ARCB	69 Neutral	$1.90B	10.97	14.25%	0.58%	-5.69%	51.78%
MRTN	66 Neutral	$1.11B	51.45	2.83%	1.76%	-13.47%	-62.49%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
SNDR	62 Neutral	$4.50B	36.24	4.20%	1.48%	-0.30%	-20.76%
WERN	61 Neutral	$1.80B	102.07	1.21%	1.93%	-7.66%	-78.26%
HTLD	54 Neutral	$717.19M	―	-3.44%	0.88%	-13.10%	-121.50%

ArcBest Corporate Events

ArcBest Amends Receivables Loan Agreement for 2025

On June 12, 2025, ArcBest Funding LLC, a subsidiary of ArcBest Corporation, amended its Receivables Loan Agreement to extend the facility termination date to July 1, 2026. This amendment, effective July 1, 2025, impacts the company’s financial operations by securing loans with accounts receivable, and it includes provisions for standby letters of credit to support self-insured liabilities, reflecting ArcBest’s strategic financial management.

The most recent analyst rating on (ARCB) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.

ArcBest Reports Q2 2025 Shipment Growth Amid Challenges

In its latest update for the second quarter of 2025, ArcBest reported a 6% year-over-year increase in daily shipments within its Asset-Based segment, despite a 1% decline in weight per shipment. This growth was driven by capturing new core business, although revenue per hundredweight declined by 4% due to a shift towards easier-to-handle freight and a reduction in manufacturing shipments. The Asset-Light segment experienced an 11% year-over-year decrease in daily revenue, attributed to a strategic reduction in less profitable truckload volumes, partially offset by strength in Managed business. ArcBest anticipates its second quarter non-GAAP operating income to range from breakeven to $1 million.

The most recent analyst rating on (ARCB) stock is a Hold with a $112.00 price target. To see the full list of analyst forecasts on ArcBest stock, see the ARCB Stock Forecast page.