ArcBest Story

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ARCB -- USA Stock  

USD 30.14  0.38  1.25%

ArcBest is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 29th of July 2020. ArcBest Earnings before Tax are projected to increase significantly based on the last few years of reporting. The past year's Earnings before Tax were at 51.47 Million. The current year Enterprise Value is expected to grow to about 919 M, whereas Net Income Per Employee is forecasted to decline to 2,456. As many baby boomers are still indifferent towards industrials space, it makes sense to go over ArcBest as a unique choice for millenniums.
Published over a month ago
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You think ArcBest (NASDAQ:ARCB) debt is an issue for investors?
This firm currently holds 613.08 M in liabilities with Debt to Equity (D/E) ratio of 0.81, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ArcBest has an asset utilization ratio of 235.96 percent. This suggests that the company is making $2.36 for each dollar of assets. An increasing asset utilization means that ArcBest is more efficient with each dollar of assets it utilizes for everyday operations.
ArcBest financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ArcBest, including all of ArcBest's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of ArcBest assets, the company is considered highly leveraged. Understanding the composition and structure of overall ArcBest debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding ArcBest Total Debt

ArcBest liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ArcBest has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on ArcBest balance sheet include debt obligations and money owed to different ArcBest vendors, workers, and loan providers. Below is the chart of ArcBest main long-term debt accounts currently reported on its balance sheet.
You can use ArcBest financial leverage analysis tool to get a better grip on understanding its financial position

How important is ArcBest's Liquidity

ArcBest financial leverage refers to using borrowed capital as a funding source to finance ArcBest ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ArcBest financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between ArcBest's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for ArcBest, but it might be worth checking our own buy vs. sell analysis

Acquisition by STEVEN LEONARD of 9800 shares of ArcBest subject to Rule 16b-3

Legal trades by ArcBest insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
ArcBest insider trading alert for grant of common stock par value $0.01 per share by STEVEN LEONARD, Chf Sales & Cust Enga Off (1), on 7th of September 2020. This event was filed by Arcbest Corp with SEC on 2020-05-14. Statement of changes in beneficial ownership - SEC Form 4. STEVEN LEONARD currently serves as vice president?customer solutions of ArcBest [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving ArcBest Investor Appetite?

The company reported the previous year's revenue of 2.98 B. Net Income was 36.98 M with profit before overhead, payroll, taxes, and interest of 204.16 M.

Asset Breakdown

914.1 M
Assets Non Current
635.4 M
Current Assets
Total Assets1.55 Billion
Current Assets635.38 Million
Assets Non Current914.06 Million
Goodwill162.99 Million
Tax Assets24.02 Million

Our ArcBest analysis suggests possible reversion in August

The total risk alpha is down to 0.67 as of today. ArcBest shows above-average downside volatility for the selected time horizon. We advise investors to inspect ArcBest further and ensure that all market timing and asset allocation strategies are consistent with the estimation of ArcBest future alpha.

Our Final Take On ArcBest

Whereas many other companies within the trucking industry are still a little expensive, even after the recent corrections, ArcBest may offer a potential longer-term growth to investors. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in ArcBest. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ArcBest.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of ArcBest. Please refer to our Terms of Use for any information regarding our disclosure principles.

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