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Fundamental analysis: ArcBest Corporation (ARCB)

Awarener score: 7.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Lacking) and growth (Good), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been growing at a good pace. It's been top tier when measured against peer companies.
  • ArcBest Corporation business shows some variation, there's some risk. It looks bottom tier against rivals.

Margins score: 5.3

  • ARCB profit margins -on goods and services sold- are usually very poor. They stand mediocre against rival companies.
  • Business profit on sales tends to be good. It's below average when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain in a weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still mediocre against similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain weak when measured against rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 9.1

  • ArcBest Corporation profit -on goods and services sold- has been growing at an extremely fast pace. It's been impressive in relation to competitors.
  • In recent years, earnings -on operations- have been growing at an excellent step, which has been better than most comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares great when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be excellent in relation to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was better than most rivals.
  • In the previous years, growth trend on total net profit has been excellent, and great when measured against peer companies.
  • Earnings per share have grown at an excellent rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 6.0

  • ARCB had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

  • ArcBest Corporation usually gets excellent returns on the resources it controls. It proves weak when measured against peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's weak when measured against comparable enterprises.

Usage of Funds score: 6.4

  • ARCB usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands weak when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is last-in-rank when measured against industry peers.
  • In the past twelve months it paid low dividends, considering the current stock price. It came mediocre against competitors.
  • Dividend payments have been more or less stable in recent years. The company has behaved a disappointment compared to similar firms.
  • Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks top-notch against comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands in good shape compared to rivals.
  • The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks more than average in relation to competitors.

Balance Sheet score: 6.5

  • ArcBest Corporation intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a very weak position compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat worse than rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is mediocre against similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks below average when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks great when measured against industry peers.
  • The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's rather normal in relation to similar companies.
  • Net interest expenses consume a slight portion of usual business earnings, and are very easily bearable. It stands slightly worse than rival firms.
  • Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are huge in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks in good shape compared to similar firms.
  • Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 7.8

  • ArcBest Corporation looks very cheap in relation to profits and financial position. It happens to be more than average in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains close to average when compared to peers.
  • In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands better than most similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still great when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks great when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still close to average when compared to peer companies.

Total score: 6.9


ARCB logos

Company at a glance: ArcBest Corporation (ARCB)

Sector, industry: Industrials, Trucking

Market Cap: 1.97 billions

Revenues TTM: 5.27 billions

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.

Awarener score: 7.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Lacking) and growth (Good), and the company's inclination to return cash to the stockholders (Very good).