ArcBest (ARCB) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: 0.6%
• Average Volume (3M): 344.25K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.51
• Revenue Growth: -5.34%
• EPS Growth: -48.16%
• Country: US
• Employees: 14,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Trucking
• EPS (TTM): 1.46
• Shares Outstanding: 22,511,020
• 10 Day Avg. Volume: 408,424
• 30 Day Avg. Volume: 344,249
• PEG Ratio: -1.37
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 47.94
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.51
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: $82.67
• Price Target Upside: 3.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.75
• Revenue Forecast (FY): $4.00B

• Rating: 66 Neutral
• Price Target: $75.00 ▼(-5.68% Downside)

ArcBest's overall stock score reflects a stable financial position with strong cash flow generation and conservative leverage. However, declining revenue and net profit margins pose challenges. Technical indicators are mixed, and valuation is fair. Recent corporate actions are positive, but market softness remains a concern.

Positive Factors

Strong Cash Flow Generation

The strong free cash flow growth indicates ArcBest's ability to generate cash efficiently, providing financial flexibility for investments and debt management.

Asset-Light Segment Improvement

Improvement in the Asset-Light segment shows ArcBest's strategic focus on diversifying revenue streams and enhancing operational efficiency, supporting long-term growth.

Board Expansion

The addition of an experienced board member strengthens leadership, aligning with ArcBest's strategy to enhance governance and drive sustainable shareholder value.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and growth, potentially impacting long-term profitability and competitive positioning.

Net Profit Margin Decrease

A declining net profit margin suggests inefficiencies in cost management, which could hinder ArcBest's ability to sustain profitability in the long run.

Market Softness Impact

Market softness affecting operating ratios indicates external pressures that may challenge ArcBest's ability to maintain efficiency and profitability.

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 services, which include both asset-based and asset-light solutions. The asset-based segment, which includes the LTL operations, contributes a significant portion of the company's revenue by offering freight transportation services using its own fleet. The asset-light segment generates income through brokerage services, logistics management, and intermodal transportation, allowing the company to leverage third-party carriers. Key revenue streams include LTL freight shipments, truckload services, and logistics solutions, supplemented by technology and software services that enhance supply chain efficiency. Significant partnerships with major retailers and manufacturers also bolster ArcBest's earnings, as they provide consistent shipping and logistics needs. Additionally, the company benefits from market demand fluctuations, economic conditions, and strategic investments in technology that improve operational efficiencies and customer service.

ArcBest Financial Statement Overview

Summary

ArcBest's financial performance is stable with strong gross profit margins and conservative leverage. However, declining revenue and net profit margins indicate challenges in maintaining profitability. Positive cash flow growth suggests resilience in cash generation despite revenue pressures.

Income Statement

ArcBest's income statement shows a mixed performance. The TTM gross profit margin of 31.46% is strong, indicating efficient cost management. However, the net profit margin has decreased to 2.41%, reflecting challenges in converting revenue into profit. Revenue has declined by 3.7% over the TTM, suggesting potential demand issues or competitive pressures. The EBIT and EBITDA margins have also contracted, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.25, indicating conservative leverage. The equity ratio is healthy, suggesting a strong capital structure. However, the return on equity has decreased to 7.43%, which may indicate less effective use of equity capital compared to previous years.

Cash Flow

ArcBest's cash flow statement shows a positive trend in free cash flow growth at 30.8% for the TTM, suggesting improved cash generation. The operating cash flow to net income ratio is 0.21, indicating moderate cash conversion efficiency. The free cash flow to net income ratio of 0.32 suggests that a significant portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	4.18B	4.43B	5.03B	3.77B	2.94B
Gross Profit	1.27B	350.00M	378.43M	573.52M	406.33M	228.13M
EBITDA	297.61M	376.78M	341.74M	536.07M	406.22M	222.58M
Net Income	97.25M	173.96M	195.43M	298.21M	213.52M	71.10M
Balance Sheet
Total Assets	2.50B	2.43B	2.49B	2.49B	2.11B	1.78B
Cash, Cash Equivalents and Short-Term Investments	132.63M	157.20M	330.07M	325.93M	124.96M	369.36M
Total Debt	460.53M	413.48M	437.73M	438.68M	337.11M	403.55M
Total Liabilities	1.18B	1.12B	1.24B	1.34B	1.18B	950.41M
Stockholders Equity	1.32B	1.31B	1.24B	1.15B	929.07M	828.59M
Cash Flow
Free Cash Flow	85.75M	45.85M	90.17M	305.31M	245.04M	148.50M
Operating Cash Flow	241.09M	285.85M	322.17M	470.82M	323.51M	205.99M
Investing Cash Flow	-95.29M	-187.28M	-21.70M	-261.08M	-303.20M	7.46M
Financing Cash Flow	-175.66M	-233.35M	-196.61M	-127.98M	-247.65M	-111.41M

ArcBest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 79.52 is above the 20-day moving average (MA) of 69.02, above the 50-day MA of 69.98, and above the 200-day MA of 70.30, indicating a bullish trend. The MACD of 2.90 indicates Negative momentum. The RSI at 73.23 is Negative, neither overbought nor oversold. The STOCH value of 92.60 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
WERN	67 Neutral	$1.82B	74.78	1.78%	1.84%	-3.42%	-43.86%
ARCB	66 Neutral	$1.78B	18.77	7.40%	0.60%	-5.34%	-48.16%
CVLG	64 Neutral	$582.85M	19.66	6.84%	1.20%	1.62%	-22.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRTN	58 Neutral	$948.08M	48.91	2.53%	2.09%	-9.74%	-42.57%
HTLD	55 Neutral	$726.46M	-20.66	-4.35%	0.87%	-19.56%	-54.39%
ULH	52 Neutral	$425.76M	-10.65	-6.66%	2.60%	-7.55%	-130.67%

ArcBest Corporate Events

ArcBest Reports November 2025 Financial Performance Update

ArcBest has provided an update on its fourth quarter 2025 financial results, highlighting preliminary statistics for November 2025. The asset-based segment saw an increase in daily shipments and tonnage compared to the previous year, although revenue per hundredweight declined. Sequentially, from October to November, shipments per day increased by 3%, and tonnage per day rose by 8%. However, the company anticipates a sequential deterioration of its non-GAAP operating ratio by about 400 basis points due to market softness and fewer workdays. In the asset-light segment, November 2025 saw a year-over-year decline in daily revenue, attributed to lower revenue per shipment and a higher mix of Managed business. Despite this, shipments grew by 5% year-over-year, supported by the Managed solution. The company expects a non-GAAP operating loss for the fourth quarter of 2025, excluding certain GAAP impacts.

ArcBest Amends Credit Facility for Increased Flexibility

On November 25, 2025, ArcBest Corporation amended its revolving credit facility, increasing the letter of credit sub-facility limit and extending the maturity date for consenting lenders. The updated Credit Facility, with a five-year term and a $250 million maximum credit amount, will support general corporate needs and working capital, offering flexibility through an Accordion Feature for additional commitments.

ArcBest Expands Board with New Appointment

On October 29, 2025, ArcBest Corporation announced the expansion of its Board of Directors by appointing Chris T. Sultemeier, who brings over 30 years of experience in logistics and transportation, to enhance the board’s capabilities. This move aligns with ArcBest’s strategy to strengthen its leadership as it continues to pursue long-term sustainable value for shareholders. Concurrently, Dr. Craig E. Philip announced his retirement from the board after 14 years of service, effective January 2026, and Eduardo F. Conrado was elected as the Lead Independent Director, succeeding Steven L. Spinner. These changes reflect ArcBest’s ongoing evaluation of board composition and its focus on maintaining a diverse and skilled leadership team.

ArcBest Announces Quarterly Cash Dividend Approval

On October 31, 2025, ArcBest announced that its Board of Directors approved a quarterly cash dividend of $0.12 per share, payable to shareholders on November 28, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

ArcBest Increases Share Repurchase Authorization to $125M

On September 15, 2025, ArcBest announced that its Board of Directors approved an increase in the company’s share repurchase authorization to $125 million. This decision reflects the board’s confidence in ArcBest’s strategy and long-term outlook. The company plans to repurchase shares through various methods, depending on market conditions, while maintaining a balanced capital allocation approach. This move is expected to impact ArcBest’s operations by potentially enhancing shareholder value and reinforcing its industry positioning.