1. Executive Summary
- Company: ArcBest Corporation
- Ticker: ARCB
- Sector: Transportation & Logistics
- Current Price: $60.77
- Market Cap: ~$1.39 billion
- Analyst Rating: Consensus = Buy (5 Buy, 7 Hold, 1 Sell)
- 12-Month Target Price (Avg.): $92.25 (+49.47% upside) (Source: StockAnalysis)
2. Company Overview
- Business Model: ArcBest provides integrated logistics and freight solutions. It operates LTL freight services through ABF Freight, expedited logistics via Panther Premium, and truckload brokerage via MoLo Solutions.
- Industry Position: One of the top 15 U.S. trucking/logistics companies, managing over 240 facilities and a fleet of ~4,000 tractors and 22,000+ trailers.
- Brands/Divisions:
- ABF Freight (LTL shipping)
- U-Pack (residential moving)
- Panther Premium Logistics (expedited freight)
- MoLo Solutions (brokerage)
- Leadership: Judy R. McReynolds – Chairman, President, and CEO
3. Financial Analysis
- Revenue: $4.18 billion in FY 2024, down 5.6% YoY
- Net Income: $173 million in 2024, up 21.9% YoY
- EPS: GAAP EPS = $7.28; non-GAAP = $6.28
- Balance Sheet:
- Total Assets: ~$3.0 billion
- Total Liabilities: ~$1.5 billion (stable leverage)
- Cash Flow: $350 million in operating cash flow for 2024, showing strength
4. Stock Performance
- 1-Year Return: –34.67% (underperformed market)
- Dividend: Annual dividend = $0.32 (Yield ~0.5%)
- Volatility: Beta = 1.38 (more volatile than market)
- Recent Result: Q1 2025 net income = $3.1 million (return to profitability after previous quarterly loss)
5. Valuation Analysis
- P/E Ratio: ~11.13 (reasonable vs. peers)
- P/S Ratio: ~0.33 (undervalued relative to sales)
- P/B Ratio: ~1.0 (fairly valued to book)
- DCF: Not disclosed
- Peer Comparison: Valuation attractive vs. peers due to cash flow strength and low P/S
6. Industry & Market Analysis
- Trends: Growth in e-commerce and B2B logistics driving demand for LTL and integrated freight services
- Market Position: Strong U.S. footprint with differentiated offerings in freight brokerage, LTL, and residential moving
- Macro Risks: Labor shortages, fuel price volatility, inflation, and interest rate changes could affect profitability
7. Risk Analysis
- Market Risk: Economic slowdown could reduce shipping volumes
- Financial Risk: Moderate debt; rising interest rates may increase financing costs
- Regulatory Risk: Environmental and safety regulations could increase operating expenses
- Geopolitical Risk: Trade conflicts or tariffs may disrupt freight demand
8. Growth Catalysts
- Digital Logistics: Investments in tech-enabled freight management platforms
- Network Expansion: Expanding into emerging markets and deepening coverage in existing areas
- M&A: Acquired MoLo Solutions in 2021, enhancing truckload brokerage capabilities
- Industry Tailwinds: Long-term logistics demand driven by omnichannel retail and e-commerce
9. Analyst Sentiment
- Consensus: Buy
- Target Price: $92.25
- Recent News: Returned to profitability in Q1 2025 with $3.1M net income; analysts view performance rebound positively
10. Conclusion
ArcBest is a well-established logistics firm with a diversified revenue base across LTL freight, moving services, and brokerage. Despite recent stock underperformance, the company’s strong cash flows, solid leadership, and undervalued metrics make it attractive to long-term investors. However, macroeconomic and operational risks require close monitoring.
Investor Type Fit: Suitable for value and turnaround investors seeking exposure to U.S. logistics infrastructure.