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Proficient Auto Logistics, Inc. (PAL)
NASDAQ:PAL
RESEARCH TOOLSreports
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Proficient Auto Logistics, Inc.
(NASDAQ:PAL)
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Rating:45Neutral
Price Target:
$7.00
▲(1.60% Upside)
Proficient Auto Logistics, Inc. is on a growth trajectory with improved revenue and a solid equity position, but faces significant challenges with profitability and cash flow sustainability. The technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. These factors collectively result in a moderate overall stock score.
Positive Factors
Revenue Growth
The substantial increase in revenue indicates strong market demand and effective expansion strategies, enhancing the company's competitive position.
Equity Position
A strong equity position provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.
Debt Management
Low debt levels reduce financial risk and interest obligations, allowing for more resources to be allocated towards operational and strategic initiatives.
Negative Factors
Profitability Concerns
Ongoing profitability issues highlight operational inefficiencies, which could hinder long-term financial health and investment capacity.
Cash Flow Sustainability
Limited free cash flow restricts the company's ability to fund new projects and manage unexpected expenses, impacting growth potential.
Operational Inefficiencies
Operational inefficiencies can lead to higher costs and reduced profitability, affecting the company's ability to compete effectively in the market.
Proficient Auto Logistics, Inc. (PAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$191.47M
Dividend YieldN/A
Average Volume (3M)215.97K
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees671
SectorGeneral
Sector StrengthN/A
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)0.05
Shares Outstanding27,788,984
10 Day Avg. Volume265,195
30 Day Avg. Volume215,974
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.43
Price to Sales (P/S)0.60
P/FCF Ratio31.87
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda9.41
Forecast
1Y Price Target
$12.50Price Target Upside81.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 MoneyPAL generates revenue through multiple streams. Primarily, the company charges for vehicle transportation services, which include long-haul shipping, short-distance deliveries, and specialized transport for high-value or oversized vehicles. Additionally, PAL offers warehousing and storage solutions for dealerships and manufacturers, providing a fee-based service for inventory management. The company has established significant partnerships with automotive manufacturers, dealerships, and online marketplaces, allowing it to secure consistent contracts and bulk shipping agreements. Furthermore, PAL may also earn money through value-added services such as vehicle inspection, detailing, and logistics consulting, enhancing its overall revenue potential.
Proficient Auto Logistics, Inc. Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 07, 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.Q3-2024 Updates
Positive Updates
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.
Negative Updates
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. Financial Statement Overview
Summary
Proficient Auto Logistics, Inc. shows strong revenue growth and a solid equity position. However, profitability remains a concern with negative net profit margins and operational inefficiencies. Cash flow sustainability is also a challenge, despite improvements in balance sheet health.Income Statement
In the latest annual report, Proficient Auto Logistics, Inc. showed a negative net profit margin, with net income at -$8.48 million. The EBIT and EBITDA margins were also negative, indicating operational inefficiencies. However, the company has seen significant revenue growth from the previous year, as the total revenue was reported at $240.85 million compared to zero in the previous period. This marks a substantial improvement in top-line performance, although profitability remains a concern.30
Negative
Balance Sheet
The company maintains a healthy equity ratio at approximately 66.5%, indicating a strong capital structure with a significant proportion of assets financed by equity. However, the debt-to-equity ratio of 0.11 shows a manageable level of debt. While stockholders' equity is robust, the high level of debt compared to assets in the previous year has improved significantly, strengthening the balance sheet.55
Neutral
Cash Flow
The operating cash flow is positive at $10.72 million, aligning well with the net income, although the free cash flow remains relatively low at $4.54 million. The company has significantly improved its cash position, with positive financing cash flows. However, the investing cash outflows are substantial, which may impact future liquidity.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 395.70M | 240.85M | 135.76M |
| Gross Profit | 87.58M | 75.31M | 17.45M |
| EBITDA | 30.59M | 15.70M | -572.83K |
| Net Income | -9.36M | -8.48M | -981.99K |
Balance Sheet | |||
| Total Assets | 520.46M | 508.09M | 4.40M |
| Cash, Cash Equivalents and Short-Term Investments | 13.65M | 15.40M | 458.23K |
| Total Debt | 38.30M | 93.57M | 11.67M |
| Total Liabilities | 180.93M | 170.11M | 4.01M |
| Stockholders Equity | 339.53M | 337.98M | 389.17K |
Cash Flow | |||
| Free Cash Flow | 16.56M | 4.54M | -803.60K |
| Operating Cash Flow | 19.57M | 10.72M | -803.60K |
| Investing Cash Flow | -38.39M | -205.03M | 194.25K |
| Financing Cash Flow | -3.83M | 209.25M | -10.93M |
Proficient Auto Logistics, Inc. Technical Analysis
Negative
6.89
Price Trends
7.43
Negative
7.54
Negative
8.43
Negative
Market Momentum
-0.10
Positive
40.86
Neutral
30.14
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 6.89 is below the 20-day moving average (MA) of 7.60, below the 50-day MA of 7.43, and below the 200-day MA of 8.43, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.14 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | 94.23M | 8.17 | 9.29% | ― | 21.10% | 31.75% | |
64 Neutral | 280.50M | 16.78 | 0.00% | ― | 12.49% | 125.41% | |
55 Neutral | 61.54M | -8.24 | -140.61% | ― | 5.14% | -17.39% | |
55 Neutral | 161.64M | -7.06 | -40.98% | ― | 21.92% | -4.84% | |
47 Neutral | 228.33M | -6.16 | -19.61% | ― | -10.97% | -696.45% | |
45 Neutral | $191.47M | ― | -2.85% | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
PAL
Proficient Auto Logistics, Inc.
6.89
-9.65
-58.34%
AIRT
Air T
22.77
5.82
34.34%
RLGT
Radiant Logistics
5.95
-0.64
-9.71%
CRGO
Freightos Limited
3.23
1.88
139.26%
SFWL
Shengfeng Development Limited Class A
1.16
-0.15
-11.45%
FLX
BingEx Ltd. ADR
3.21
-13.28
-80.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.