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Proficient Auto Logistics, Inc. (PAL)
NASDAQ:PAL
RESEARCH TOOLSreports
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Proficient Auto Logistics, Inc.
(NASDAQ:PAL)
41Neutral
Positive Factors
Investment Rating
An OUTPERFORM investment rating is reiterated, with a 12-month price target of $15, suggesting confidence in future growth potential.
Market Share Growth
Proficient is capitalizing on market dislocation to gain sustainable and accretive market share, promising long-term growth.
New Contracts
Management secured new contract business expected to boost annual revenue by approximately 15%, enhancing the company's financial performance.
Negative Factors
Adjusted EBITDA Decline
Adjusted EBITDA decreased 26.3% to $9.6 million, indicating a decline in profitability compared to previous estimates.
Operating Revenue Decline
Total Operating Revenue decreased 12.5%, reflecting challenges in maintaining higher revenue levels.
Reduced Price Target
Analyst is scaling back the 12-month price target to $15, reflecting lower near-term earnings expectations.
Proficient Auto Logistics, Inc. (PAL) vs. S&P 500 (SPY)
Market Cap
$204.37M
Dividend YieldN/A
Average Volume (3M)350.60K
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees671
SectorGeneral
Sector StrengthN/A
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)-0.32
Shares Outstanding27,069,115
10 Day Avg. Volume353,145
30 Day Avg. Volume350,600
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.81
Price to Cash Flow (P/CF)-48.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.00Price Target Upside111.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Proficient Auto Logistics, Inc. Business Overview & Revenue Model
Company DescriptionProficient Auto Logistics, Inc. focuses on providing auto transportation and logistics services in North America. The company operates approximately 1,130 auto transport vehicles and trailers, including 615 company-owned transport vehicles and trailers. It serves auto companies, electric vehicle producers, auto dealers, auto auctions, rental car companies, and auto leasing companies. The company was formerly known as AH Acquisition Corp. and changed its name to Proficient Auto Logistics, Inc. in October 2023. The company was incorporated in 2023 and is based in Jacksonville, Florida.
How the Company Makes MoneyProficient Auto Logistics, Inc. (PAL) generates revenue primarily through service fees charged for its vehicle transportation and logistics solutions. The company earns income by providing customized shipping options, such as enclosed or open transport, catering to different customer needs and vehicle types. Revenue streams also include fees from fleet management services offered to corporate clients, which involve managing and optimizing the transportation of multiple vehicles. PAL may also engage in strategic partnerships with car dealerships, rental agencies, and manufacturers, contributing to its earnings by offering exclusive transportation solutions or bulk service agreements. Additionally, the company might generate ancillary income through value-added services such as expedited shipping, vehicle tracking, and insurance coverage options.
Proficient Auto Logistics, Inc. Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||
| TTM | Dec 2023 | |
|---|---|---|
| Income Statement | Total Revenue | |
| 225.94M | 0.00 | Gross Profit |
| 88.42M | 0.00 | EBIT |
| 4.55M | -572.83K | EBITDA |
| 787.34M | -572.83K | Net Income Common Stockholders |
| 4.12M | 0.00 | |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |
| ― | 458.23K | Total Assets |
| ― | 4.40M | Total Debt |
| 0.00 | 61.45M | Net Debt |
| ― | 61.00M | Total Liabilities |
| ― | 4.01M | Stockholders Equity |
| ― | 389.17K | |
| Cash Flow | Free Cash Flow | |
| 7.45M | -803.60K | Operating Cash Flow |
| 13.49M | -803.60K | Investing Cash Flow |
| -201.83M | 0.00 | Financing Cash Flow |
| 206.50M | 1.59M |
Proficient Auto Logistics, Inc. Technical Analysis
Negative
7.55
Price Trends
9.45
Negative
9.41
Negative
12.36
Negative
Market Momentum
-0.58
Positive
41.34
Neutral
33.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAL, the sentiment is Negative. The current price of 7.55 is below the 20-day moving average (MA) of 8.39, below the 50-day MA of 9.45, and below the 200-day MA of 12.36, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 33.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAL.
Proficient Auto Logistics, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $272.65M | 20.36 | 6.61% | ― | -3.33% | 29.48% | |
62 Neutral | $74.25M | 6.83 | 9.67% | ― | 24.75% | 5.52% | |
56 Neutral | $361.76M | 124.65 | -49.98% | ― | -0.69% | ― | |
55 Neutral | $3.89B | -11.96 | -15.29% | 5.24% | 19.71% | -42.97% | |
47 Neutral | $99.33M | ― | -23.18% | ― | 49.48% | 80.17% | |
41 Neutral | $204.37M | ― | ― | ― | ― | ||
41 Neutral | $45.11M | ― | -13.52% | ― | 3.36% | 94.32% |
* General Sector Average
Performance Comparison
PAL
Proficient Auto Logistics, Inc.
7.55
-7.45
-49.67%
AIRT
Air T
16.55
-7.99
-32.56%
RLGT
Radiant Logistics
5.71
0.80
16.29%
CRGO
Freightos Limited
1.98
-0.57
-22.35%
SFWL
Shengfeng Development Limited Class A
0.90
-0.70
-43.75%
FLX
BingEx Ltd. ADR
2.16
-14.33
-86.90%
Proficient Auto Logistics, Inc. Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -29.77% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Negative
The earnings call highlighted some positive developments, such as new contracts and cost savings initiatives, but was overshadowed by significant revenue declines, challenges in premium services and spot buy opportunities, and persistent pressure on revenue per unit. The sentiment is cautious with an outlook of improvement through foundational initiatives and market position, yet facing current market weaknesses and volatility.Highlights
Market Position and New Contracts
Proficient Auto Logistics added 3 new contracts since August 2024, with increased renewal activity for 7 meaningful contracts, mostly with 3-year terms and one with a 5-year term.
Cost Synergy Achievements
Identified cost synergies in fuel, tires, and parts with national contracts in place, targeting $8 million to $10 million in annualized savings.
Fleet and Technology Investments
Added 66 truck and trailer units to the fleet, an increase of approximately 10%, and technology investments are 75% complete in the transportation management system.
Acquisition Integration
The acquisition of Auto Transport Group was completed and is expected to contribute approximately 10% of the company's revenue in the current quarter.
Lowlights
Revenue Decline
Operating revenue decreased by 12.5% with total revenue down by 12.5% compared to the third quarter of the previous year.
Challenges in Premium Services
Revenue from dedicated fleet service fell significantly to $4.7 million in Q3 2024 from $16.2 million in Q3 2023.
Spot Buy Revenue Drop
Revenue from spot buy opportunities comprised only 4% of total revenue, down from 10% a year ago, with revenue per unit from spot buys falling by 40% year-over-year.
Decline in Revenue Per Unit
Revenue per unit decreased to approximately $169 from $190 in the same quarter last year, with October revenue per unit down 15.2% compared to October 2023.
Company Guidance
During the Proficient Auto Logistics (PAL) Q3 2024 earnings call, the company provided guidance reflecting cautious optimism amidst challenging market conditions. For the upcoming fourth quarter, they anticipate a sequential revenue increase in the low-to-mid single-digit range, approximately 2% to 5%. However, the ongoing pressure on revenue per unit remains a concern, as evidenced by a 15.2% decline year-over-year in October. Despite these challenges, PAL expects a modest improvement in the adjusted operating ratio, projecting a potential increase of 100 to 200 basis points, although it may still remain in the mid-90s. The company is focused on leveraging its market position and enhancing operational efficiencies, anticipating better market conditions and capturing long-term opportunities.Proficient Auto Logistics, Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Proficient Auto Logistics Announces New Agreements and Conference
Neutral
Jan 30, 2025
On January 26, 2025, Proficient Auto Logistics entered into a consulting agreement with Delta Automotive Services and John Skiadas to provide advisory services for integration and operational transition tasks until February 28, 2025. Additionally, the company announced its participation in the Stifel Financial Corp. Transportation & Logistics Conference and plans to release its preliminary unaudited financial results for Q4 2024 on February 11, 2025, followed by an investor call.
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.