Arcbest Corp

ARCB

Trucking (No Local)

Mkt Cap

$2.446B

PE

20.07

Debt

$275.4M

Cash

$172.9M

EV

$2.548B

FCF

$68.56M

Market Cap

$2.446B

P/E Ratio

20.07

Debt

$275.4M

Cash

$172.9M

EV

$2.548B

FCF

$68.56M

Charts data: {"Earnings":[{"time":"2014-12-30","value":43877000},{"time":"2015-12-30","value":44404000},{"time":"2016-12-30","value":18514000},{"time":"2017-12-30","value":59488000},{"time":"2018-12-30","value":67112000},{"time":"2019-12-30","value":39963000},{"time":"2020-12-30","value":71100000},{"time":"2021-12-30","value":213521000},{"time":"2022-12-30","value":298209000},{"time":"2023-12-30","value":195433000}],"Sales":[{"time":"2014-12-30","value":2612693000},{"time":"2015-12-30","value":2666905000},{"time":"2016-12-30","value":2700219000},{"time":"2017-12-30","value":2826457000},{"time":"2018-12-30","value":3093788000},{"time":"2019-12-30","value":2988310000},{"time":"2020-12-30","value":2940163000},{"time":"2021-12-30","value":3980067000},{"time":"2022-12-30","value":5324052000},{"time":"2023-12-30","value":4427443000}],"Net Margins":[{"time":"2014-12-30","value":0.01679378327266158},{"time":"2015-12-30","value":0.016650011905185974},{"time":"2016-12-30","value":0.006856480900252905},{"time":"2017-12-30","value":0.021046844158605634},{"time":"2018-12-30","value":0.021692501231500027},{"time":"2019-12-30","value":0.01337311055412591},{"time":"2020-12-30","value":0.02418233274821838},{"time":"2021-12-30","value":0.053647589349626525},{"time":"2022-12-30","value":0.05601166179443777},{"time":"2023-12-30","value":0.04414127974092495}],"Assets":[{"time":"2014-12-30","value":1127622000},{"time":"2015-12-30","value":1262909000},{"time":"2016-12-30","value":1309992000},{"time":"2017-12-30","value":1365641000},{"time":"2018-12-30","value":1539231000},{"time":"2019-12-30","value":1651207000},{"time":"2020-12-30","value":1779008000},{"time":"2021-12-30","value":2112676000},{"time":"2022-12-30","value":2494286000},{"time":"2023-12-30","value":2485094000}],"Stockholders Equity":[{"time":"2014-12-30","value":560883000},{"time":"2015-12-30","value":588728000},{"time":"2016-12-30","value":598897000},{"time":"2017-12-30","value":651462000},{"time":"2018-12-30","value":717682000},{"time":"2019-12-30","value":763043000},{"time":"2020-12-30","value":828593000},{"time":"2021-12-30","value":929067000},{"time":"2022-12-30","value":1151401000},{"time":"2023-12-30","value":1242363000}],"ROE":[{"time":"2014-12-30","value":0.0782284362335817},{"time":"2015-12-30","value":0.0754236251715563},{"time":"2016-12-30","value":0.03091349597677063},{"time":"2017-12-30","value":0.09131461236419008},{"time":"2018-12-30","value":0.09351216834196761},{"time":"2019-12-30","value":0.05237319521966652},{"time":"2020-12-30","value":0.08580811085780353},{"time":"2021-12-30","value":0.22982303752043717},{"time":"2022-12-30","value":0.2589966484309116},{"time":"2023-12-30","value":0.15730748581533738}],"ROA":[{"time":"2014-12-30","value":0.06262027523407666},{"time":"2015-12-30","value":0.059779445708281434},{"time":"2016-12-30","value":0.02211463886802362},{"time":"2017-12-30","value":0.03918306494898732},{"time":"2018-12-30","value":0.07087825024314089},{"time":"2019-12-30","value":0.03862023356247884},{"time":"2020-12-30","value":0.05524314674245422},{"time":"2021-12-30","value":0.13300004354666783},{"time":"2022-12-30","value":0.16007346390911067},{"time":"2023-12-30","value":0.07521445868848421}]}

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, 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, 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.

Sector

10-Q
9/30/23
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3/31/23
10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Arcbest Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$68.56M	$86.75M	$107.7M	$131.1M	$156.5M	$183M	$209.7M	$235.2M	$258.3M	$277.3M	$291.2M	$2.912B
DCF		$75.43M	$81.43M	$86.21M	$89.47M	$91M	$90.66M	$88.43M	$84.42M	$78.84M	$71.98M	$719.8M
Value	$1.558B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 31%

Earnings Stability 64%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	1.7%	0.69%	2.1%	2.2%	1.3%	2.4%	5.4%	5.6%	4.4%	2.8%
ROA	6%	2.2%	3.9%	7.1%	3.9%	5.5%	13%	16%	7.5%	7.9%
ROE	7.5%	3.1%	9.1%	9.4%	5.2%	8.6%	23%	26%	16%	10%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.55%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.77%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.88%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.33%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +14.63%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.09%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-26.04	-7.75	168.46	2.94	39.34	3.48	1.34	1.38	2.87	4.02
Debt Equity	0.44	0.51	0.51	0.48	0.50	0.42	0.30	0.29	0.24	0.23
MIN
Graham Stability	-	-	100%	100%	83%	100%	100%	100%	100%	83%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.02.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -3.33.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.83.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	7.3%	7.4%	15%	-17%	1.2%
Net Income	40%	24%	40%	-34%	2.9%
Stockholders Equity	11%	12%	14%	7.9%	1.4%
FCF	-	-2.6%	0.72%	-57%	-860%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.43%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +23.83%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +2.91%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.6%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.39%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -2.6%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -864.45%.