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Arcbest (ARCB)
:ARCB
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ArcBest
(NASDAQ:ARCB)
71Outperform
Positive Factors
Pricing Strategy
Contract renewals in the quarter grew to 4.9% from 4.5% last quarter, indicating 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 EPS down 62% from a year ago, below analyst expectations.
Industrial Economy
Ongoing softness in the industrial economy and reduction in heavier-weight LTL shipments are concerns.
Market Pressures
The asset-light segment posted a revenue decline, facing ongoing market pressures.
ArcBest (ARCB) vs. S&P 500 (SPY)
Market Cap
$1.53B
Dividend Yield0.72%
Average Volume (3M)470.98K
Price to Earnings (P/E)8.8
Beta (1Y)1.44
Revenue Growth-5.69%
EPS Growth51.78%
CountryUS
Employees14,000
SectorIndustrials
Sector Strength91
IndustryTrucking
Share Statistics
EPS (TTM)0.51
Shares Outstanding22,911,352
10 Day Avg. Volume405,629
30 Day Avg. Volume470,984
Financial Highlights & Ratios
PEG Ratio2.27
Price to Book (P/B)1.11
Price to Sales (P/S)0.00
P/FCF Ratio23.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$81.50Price Target Upside21.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
ArcBest Business Overview & Revenue Model
Company DescriptionArcBest Corporation is a leading logistics company that delivers integrated supply chain solutions. Headquartered in Fort Smith, Arkansas, ArcBest operates in the transportation and logistics sector, providing a range of services including less-than-truckload (LTL) shipping, ground expedite, truckload brokerage, managed transportation, and international freight forwarding. The company's robust service portfolio is designed to meet the diverse logistics needs of its customers across various industries.
How the Company Makes MoneyArcBest 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.75
Positive
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.80
Positive
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.70
Positive
| 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 | EBIT |
| 232.39M | 244.43M | 172.62M | 399.27M | 280.99M | 98.28M | EBITDA |
| 349.03M | 376.78M | 341.36M | 534.19M | 410.28M | 222.58M | Net Income Common Stockholders |
| 179.40M | 173.96M | 142.16M | 298.21M | 213.52M | 71.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 98.67M | 157.20M | 330.07M | 326.03M | 124.96M | 369.36M | Total Assets |
| 2.41B | 2.43B | 2.49B | 2.49B | 2.11B | 1.78B | Total Debt |
| 315.38M | 413.48M | 437.73M | 438.68M | 337.11M | 403.55M | Net Debt |
| 241.26M | 286.03M | 175.50M | 280.30M | 260.49M | 99.59M | 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
Neutral
66.93
Price Trends
66.31
Positive
79.15
Negative
92.93
Negative
Market Momentum
0.57
Negative
53.97
Neutral
71.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCB, the sentiment is Neutral. The current price of 66.93 is above the 20-day moving average (MA) of 62.31, above the 50-day MA of 66.31, and below the 200-day MA of 92.93, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARCB.
ArcBest Risk Analysis
ArcBest disclosed 30 risk factors in its most recent earnings report. ArcBest reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ArcBest Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.53B | 8.85 | 14.25% | 0.72% | -5.69% | 51.78% | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% | |
64 Neutral | $1.12B | 51.87 | 2.83% | 1.74% | -13.47% | -62.49% | |
63 Neutral | $4.27B | 34.46 | 4.20% | 1.56% | -0.30% | -20.76% | |
60 Neutral | $691.25M | 8.29 | 13.57% | 1.60% | 1.16% | -30.78% | |
50 Neutral | $1.72B | 97.79 | 1.21% | 2.01% | -7.66% | -78.26% | |
48 Neutral | $711.70M | ― | -3.44% | 0.88% | -13.10% | -121.50% |
* Industrials Sector Average
Performance Comparison
ARCB
ArcBest
66.93
-45.68
-40.56%
HTLD
Heartland Express
9.06
-2.27
-20.04%
MRTN
Marten Transport
13.76
-3.89
-22.04%
WERN
Werner Enterprises
27.85
-8.71
-23.82%
ULH
Universal Logistics
26.25
-20.78
-44.18%
SNDR
Schneider National
24.40
2.68
12.34%
ArcBest Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 13.46%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant advancements in operational efficiency and innovative technology deployments, revenue and operating income faced declines due to industrial weakness and market challenges. The company's proactive strategies in service enhancements and managed solutions are promising, but the current economic environment poses substantial challenges.Q1-2025 Updates
Positive Updates
Operational Efficiency Improvements
ArcBest achieved a 31% improvement in the speed of deal execution and a 50% increase in revenue per shipment levels for dynamic business since 2020.
Innovative Technology Deployment
Introduction of Voxx Vision, a 3D perception technology that transforms forklifts into intelligent mobile dimensioners, expected to enhance transparency and compliance in freight handling workflows.
Service and Efficiency Enhancements
City route optimization reduced planning hours significantly, achieving $6 million in savings during the first quarter.
Managed Solution Growth
ArcBest's managed transportation solution achieved double-digit growth and all-time quarterly highs for both shipments and revenue.
Negative Updates
Revenue Decline
Consolidated revenue decreased by 7% from last year's first quarter to $967 million, with a significant drop in operating income.
Industrial Weakness Impact
A 4% decrease in tons per day due to industrial weakness and fewer household goods moves attributed to higher interest rates and low housing inventory.
Asset-Based Segment Challenges
The asset-based segment saw a $27 million decrease in operating income, with an operating ratio increase of 390 basis points year-over-year.
Tariff and Trade Policy Challenges
Uncertainty around US tariffs and trade policies causing disruptions and requiring adjustments in customer operations.
Company Guidance
During the ArcBest First Quarter 2025 Earnings Conference Call, the company provided several key metrics and insights into their financial and operational performance. Consolidated revenue for the first quarter decreased by 7% year-over-year to $967 million. The asset-based segment reported a $27 million decline in operating income, while the asset-light segment improved its non-GAAP operating loss by $4 million compared to the prior year. Adjusted earnings per share were 51¢, down from $1.34 in the first quarter of 2024. The asset-based business saw a 95.9% operating ratio, which increased by 390 basis points from the previous year. Despite a 4% decrease in daily shipments and a 4% reduction in weight per shipment, ArcBest achieved a 4% year-over-year increase in daily shipments in April 2025. Revenue per hundredweight in April decreased by 2% year-over-year. The asset-light segment experienced a 9% decline in daily revenue but improved its non-GAAP operating loss. The company anticipates a non-GAAP operating loss of $1 million to $2 million for this segment in the second quarter. ArcBest's capital expenditure guidance for 2025 is $225 to $275 million, with a focus on optimizing total cost ownership and strategic investments. The company returned over $24 million to shareholders through share repurchases and dividends, and has $350 million in available liquidity.ArcBest Corporate Events
Business Operations and StrategyFinancial Disclosures
ArcBest Reports Q1 2025 Financial Decline
Negative
Mar 10, 2025
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.
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.