ArcBest Corp (ARCB) stock analysis

P/E above its 5-year median

ArcBest's P/E of 107.0 is above its own 5-year median of 11.7.

P/E above the industry

ArcBest's P/E of 107.0 is above the Trucking and Courier Services, except Air median of 34.1.

EV/EBITDA above its 5-year median

ArcBest's EV/EBITDA of 13.4 is above its 5-year median of 6.2.

P/B above the industry

ArcBest's price-to-book of 2.35 is above the Trucking and Courier Services, except Air median of 1.83.

Trading above fair value

The share price of $135.91 is above our fair value estimate of $65.75.

Margin of safety under 20%

The price is 107% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -7.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -39.3% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -70.5% over the last twelve months, against a 5-year average of -3.3% a year.

Growing faster than the industry

Revenue grew 8.1% over the last twelve months; the Trucking and Courier Services, except Air median is 7.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 2.2% over the last twelve months and averaged 17.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.7%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

ArcBest's return on equity of 2.2% is below the Trucking and Courier Services, except Air median of 3.4%.

Earnings shrank over 5 years

Net income shrank 3.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 0.7% over the last twelve months, against a 5-year average of 4.3%.

Net margin below the industry

ArcBest's net margin of 0.7% is below the Trucking and Courier Services, except Air median of 2.1%.

Low debt

Debt is 15.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 34.3% five years ago to 15.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 154% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 1.00 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

ArcBest paid dividends worth 0.4% of the share price over the last twelve months.

Yield below Treasuries

The 0.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; ArcBest yields 0.4%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Covered by earnings

Dividends take 37.5% of net income.

Covered by free cash flow

Dividends take 4.2% of free cash flow.