ArcBest (ARCB) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: 0.66%
• Average Volume (3M): 358.44K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.58
• Revenue Growth: -6.42%
• EPS Growth: 25.72%
• Country: US
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Trucking
• EPS (TTM): 1.36
• Shares Outstanding: 22,726,877
• 10 Day Avg. Volume: 267,066
• 30 Day Avg. Volume: 358,443
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 5.57
• 1Y Price Target: $86.36
• Price Target Upside: 16.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: $82.00 ▲(10.17% Upside)

ArcBest's overall stock score of 69 reflects a stable financial position with operational efficiency and a balanced capital structure. However, challenges such as declining revenue growth and fluctuating cash flow metrics weigh on the score. The stock's valuation is reasonable, and recent corporate events are positive, but mixed technical indicators and earnings call sentiment suggest caution. Investors should monitor the company's efforts to reverse revenue declines and stabilize cash flow.

Positive Factors

Earnings Outlook

The price objective for ARCB has been increased to $86, reflecting a positive outlook on future earnings.

Leadership

Seth Runser, with 18 years of experience at ARCB, takes over as CEO after successfully guiding the company through pandemic-related challenges and overseeing strategic initiatives.

Operational Efficiency

The company remains focused on optimizing its cost structure with labor planning tools, linehaul insourcing, and continued facility investments.

Negative Factors

Demand Environment

The underlying demand environment remains hobbled by uncertainty and we see expectations remaining subdued.

Financial Performance

2Q came in below our forecast and consensus expectations.

Market Conditions

Evidence of softening pricing across the LTL space puts a lid on operating leverage in our view and is negative for shares.

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 generates revenue primarily through its diverse service offerings in logistics and transportation. The Asset-Based segment earns money from providing less-than-truckload (LTL) shipping services, where freight is consolidated from multiple customers to optimize transportation costs. The Asset-Light segment, which focuses on third-party logistics, generates revenue by offering brokerage and freight management services, connecting shippers with carriers. Additionally, the Logistics segment contributes to revenue through customized supply chain solutions and value-added services, such as warehousing and inventory management. Strategic partnerships with carriers and technology providers enhance ArcBest's operational efficiency and service capabilities, further driving its earnings.

ArcBest Financial Statement Overview

Summary

ArcBest demonstrates a stable financial foundation with strengths in operational efficiency and a balanced capital structure. However, the declining revenue growth and fluctuating cash flow metrics present challenges that need addressing to ensure sustained financial health. The company should focus on reversing the revenue decline and stabilizing cash flow generation to enhance its overall financial performance.

Income Statement

ArcBest's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate in recent periods, indicating potential challenges in maintaining sales momentum. However, the EBIT and EBITDA margins have remained relatively stable, suggesting operational efficiency. The gross profit margin has decreased over time, which could impact profitability if not addressed. Overall, while profitability metrics are stable, the declining revenue trend is a concern.

Balance Sheet

ArcBest's balance sheet reflects a solid financial position with a manageable debt-to-equity ratio, indicating prudent leverage. The return on equity has decreased from previous highs but remains healthy, showcasing the company's ability to generate returns for shareholders. The equity ratio is stable, suggesting a balanced capital structure. While the financial stability is commendable, the slight decline in ROE warrants attention.

Cash Flow

The cash flow statement reveals a positive trajectory in free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting efficient cash conversion from earnings. However, the free cash flow to net income ratio has fluctuated, highlighting potential volatility in cash flow management. Overall, the cash flow position is strong, but consistency in free cash flow generation could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.05B	4.18B	4.43B	5.32B	3.98B	2.94B
Gross Profit	314.40M	350.00M	378.43M	573.52M	410.56M	228.13M
EBITDA	381.56M	376.78M	341.36M	534.19M	410.28M	222.58M
Net Income	158.29M	173.96M	142.16M	298.21M	213.52M	71.10M
Balance Sheet
Total Assets	2.47B	2.43B	2.49B	2.49B	2.11B	1.78B
Cash, Cash Equivalents and Short-Term Investments	139.68M	157.20M	330.07M	326.03M	124.96M	369.36M
Total Debt	327.62M	413.48M	437.73M	438.68M	337.11M	403.55M
Total Liabilities	1.17B	1.12B	1.24B	1.34B	1.18B	950.41M
Stockholders Equity	1.30B	1.31B	1.24B	1.15B	929.07M	828.59M
Cash Flow
Free Cash Flow	65.56M	45.85M	90.17M	305.31M	245.04M	148.50M
Operating Cash Flow	231.75M	285.85M	322.17M	470.82M	323.51M	205.99M
Investing Cash Flow	-137.10M	-187.28M	-21.70M	-261.08M	-303.20M	7.46M
Financing Cash Flow	-195.37M	-233.35M	-196.61M	-127.98M	-247.65M	-111.41M

ArcBest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 74.43 is above the 20-day moving average (MA) of 72.90, below the 50-day MA of 76.65, and below the 200-day MA of 80.70, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 43.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARCB.

ArcBest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNDR	71 Outperform	$4.28B	34.30	4.20%	1.56%	2.20%	7.86%
ARCB	69 Neutral	$1.66B	10.83	12.50%	0.66%	-6.42%	25.72%
ULH	66 Neutral	$661.93M	10.65	9.67%	1.67%	-5.55%	-52.21%
WERN	64 Neutral	$1.71B	33.28	3.65%	1.97%	-6.43%	-13.76%
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
MRTN	56 Neutral	$945.64M	45.21	2.72%	2.07%	-11.77%	-52.06%
HTLD	49 Neutral	$647.91M	―	-4.42%	0.95%	-16.42%	-49.44%

ArcBest Corporate Events

ArcBest Declares Quarterly Cash Dividend Announcement

On July 25, 2025, ArcBest announced that its Board of Directors approved a quarterly cash dividend of $0.12 per share, payable to shareholders of record on August 8, 2025, with payment scheduled for August 22, 2025. This decision reflects ArcBest’s ongoing commitment to returning value to its shareholders and may positively influence investor confidence in the company’s financial health.

ArcBest Announces Board Member Retirement and New Appointment

On July 24, 2025, ArcBest announced the retirement of long-serving board member Steven L. Spinner, effective October 31, 2025, after 14 years of service. Concurrently, the board appointed Thom Albrecht, a seasoned expert in transportation and logistics, as a new independent director. Albrecht’s extensive experience in finance and business strategy is expected to enhance ArcBest’s board as the company continues to execute its long-term strategy. These changes are part of ArcBest’s regular assessment of board composition and are aimed at enhancing long-term sustainable value for shareholders.

ArcBest Announces CEO Transition Effective January 2026

On July 17, 2025, ArcBest announced that CEO Judy R. McReynolds will retire on December 31, 2025, with President Seth Runser set to succeed her as CEO on January 1, 2026. McReynolds, who has led the company since 2010, will continue as chairman of the board. Runser, with 18 years at ArcBest, is expected to build on the company’s legacy of innovation and customer service. This transition is seen as a strategic move to ensure continued growth and value creation for stakeholders, with Runser’s leadership anticipated to drive future success.

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.

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.