ArcBest (ARCB) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: 0.82%
• Average Volume (3M): 444.24K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.42
• Revenue Growth: -5.69%
• EPS Growth: 51.78%
• Country: US
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Trucking
• EPS (TTM): 7.56
• Shares Outstanding: 23,150,276
• 10 Day Avg. Volume: 483,488
• 30 Day Avg. Volume: 444,237
• PEG Ratio: 0.15
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $81.80
• Price Target Upside: 41.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

ArcBest's overall stock score reflects a stable financial foundation with effective cost management and strong equity backing. However, profitability and cash flow generation need improvement. The technical analysis indicates bearish momentum, suggesting caution. Valuation is attractive, potentially offering upside if operational challenges are addressed. The earnings call reveals strategic focus on efficiency and innovation, though economic pressures remain a concern.

Positive Factors

Pricing Strategy

ARCB spoke more positively on LTL pricing with contract renewals in the quarter growing to 4.9% from 4.5% last quarter, and management noted continued rational pricing.

Revenue per Hundredweight

Revenue per hundredweight increased by 8%, which was a bright spot despite other metrics falling below expectations.

Negative Factors

Earnings 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

Ongoing softness in the industrial economy and reduction in heavier-weight LTL shipments are concerns.

Revenue Decline

Revenue declines accelerated 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 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's financial statements indicate a stable position with effective cost management and strong equity backing. Income statement shows moderate profitability with room for improvement. Balance sheet reflects financial stability with prudent leverage. Cash flow statements highlight stable cash generation, though opportunities for improvement exist.

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
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
376.78M	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
45.85M	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

• Technical Analysis Sentiment: Negative
• Last Price: 57.81
• 50DMA: Negative
• 100DMA: Negative
• 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 57.81 is below the 20-day moving average (MA) of 61.33, below the 50-day MA of 69.91, and below the 200-day MA of 96.16, indicating a bearish trend. The MACD of -3.61 indicates Negative momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 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
ARCB	68 Neutral	$1.35B	7.74	14.25%	0.82%	-5.69%	51.78%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
ULH	60 Neutral	$572.14M	6.86	13.57%	1.93%	1.16%	-30.78%
SNDR	58 Neutral	$3.84B	32.90	3.94%	1.77%	-3.79%	-50.29%
MRTN	57 Neutral	$1.04B	48.49	2.83%	1.87%	-13.47%	-62.49%
WERN	50 Neutral	$1.54B	87.28	1.21%	2.27%	-7.66%	―
HTLD	46 Neutral	$578.76M	―	-3.52%	1.05%	-13.25%	-301.55%

ArcBest Corporate Events

ArcBest Reports Q1 2025 Financial Decline

ArcBest’s first quarter 2025 financial update reveals a decline in daily tonnage and shipment levels in its Asset-Based segment compared to the previous year, attributed to a soft manufacturing economy and low truckload prices. Despite these challenges, the company managed to increase revenue per hundredweight, although lower fuel prices offset these gains. Meanwhile, the Asset-Light segment experienced a decrease in daily revenue due to winter weather impacts and strategic reductions in less profitable volumes, leading to an expected operating loss for the quarter.