ArcBest Corporation Common Stock (ARCB)
CyclicalFairStock Score: 17/100 — RISKY
Key Financials
| Current Price | $122.71 |
| Market Cap | $2.7B |
| P/E Ratio | 50.5 |
| ROE | 4.33% |
| Dividend Yield | 0.31% |
| Sector | Industrials |
Strengths
- Generates $79 million in annual free cash flow (2.9% yield on market cap)
- Conservative balance sheet with debt-to-equity of just 0.36, providing financial flexibility
- Established organization with 14,000 employees providing operational scale
Concerns
- Trades significantly above Graham Number ($58) with negative 106% margin of safety—limited downside protection
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Revenue declining at 2.9% year-over-year signals potential demand weakness or market share loss
- Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
AI Analysis
ArcBest Corporation Common Stock is a small-cap industrials company valued at $2.7 billion. Revenue stands at $4.0 billion, though the company is currently unprofitable. From a quality standpoint, ArcBest shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 2.6 in the grey zone. On valuation, the stock is commanding a steep 45.8x multiple, with trades far above its Graham Number ($58) with no margin of safety. Growth dynamics show revenue growing at -2.9% and profit growth of -128.0%. Our composite FairStock Score of 17/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $79 million in annual free cash flow (2.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 46x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer