A small moving company that started over 90 years ago as OK Transfer has grown and evolved into one of the country's premier trucking companies. Today that company is named ArcBest Corporation and it is a multibillion dollar freight transportation and logistics company with five subsidiaries that solve complex transportation and logistics challenges: ABF Freight, ABF Logistics, Panther Premium Logistics, FleetNet America and ArcBest Technologies.
ArcBest Corporation provides freight transportation services and integrated logistics solutions worldwide. The company's Freight Transportation segment transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products through less than container load services. This segment also offers motor carrier services in Canada and Puerto Rico through arrangements with other trucking companies. Its Premium Logistics & Expedited Freight Services segment provides expedited freight transportation services to commercial and government customers; premium logistics services, such as deployment of specialized equipment to meet line haul requirements; and domestic and international freight transportation with air, ocean, and ground service. The company's Transportation Management segment offers third-party transportation brokerage and management services by sourcing various capacity solutions, including dry van over the road and intermodal, flatbed, temperature-controlled, and specialized equipment. This segment also provides full container load and expedited less than container load ocean transportation services; and transportation and warehouse management services. Its Emergency & Preventative Maintenance segment offers roadside assistance and maintenance management services for commercial vehicles through third-party service providers. The company's Household Goods Moving Services segment provides third-party transportation, warehousing, and delivery services to consumer, corporate, and military household goods moving markets. As of December 31, 2014, it operated approximately 4,100 tractors and 19,900 trailers. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. The company was founded in 1923 and is headquartered in Fort Smith, Arkansas.
(Summary) (Company) (Chart)
| 7 October 2015 Price $26.53 1yr Target $39.22 Analysts 9 Dividend $0.24 Payout Ratio 11.88% 1yr Cap Gain 49.52% Yield 0.90% 1yr Tot Return 50.42% | EPS (ttm) $2.02 EPS next yr $2.82 EPS next 5yr 19.20% 1yr Potential $54.14 P/E 13.16 PEG 0.69 Beta 1.74 Market Cap $689.74 Mil Revenues $2.69 Bil Earnings $53.00 Mil Profit Margin 1.97% | 1yr EarnGR 186.44% 3yr EarnGR 93.12% 5yr EarnGR --- 1yr DivGR 33.33% 3yr DivGR --- 5yr DivGR --- Quick Ratio 1.50 Current Ratio 1.50 Debt/Equity 0.28 ROA 4.60% ROE 9.40% |
The Subsidiaries
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The Company's HIstory
In 1923 the company was founded as a local freight hauler, the company operated in and around Fort Smith, Arkansas, as OK Transfer. In 1935 OK Transfer acquired Arkansas Motor Freight (AMF) and assumed its name and became an interstate carrier with the purchase of Motor Express. In the 1940s Operated as a regional carrier in Arkansas, Missouri and Louisiana. In 1951 Robert A. Young Jr. purchased AMF and made other key acquisitions. In 1956 AMF acquired Best Motor Freight and became Arkansas Best Freight System Inc. the next year – later renamed ABF. In 1966 Arkansas Best Corporation is formed. System expansion continued with the purchase of Healzer Cartage Company, Delta Motor Line and others. In 1972 Arkansas Best Corporation becomes a public company listed on the New York Stock Exchange. In 1978 With the purchase of Navajo Freight Lines, ABF becomes one of 12 transcontinental motor carriers. In 1980 The Motor Carrier Act of 1980 is introduced, and the trucking industry is deregulated. In 1988 Arkansas Best Corporation endures a hostile takeover attempt. A leveraged buyout is executed and Arkansas Best becomes a private company. In 1992 Arkansas Best Corporation once again becomes a public company, now traded on the Nasdaq Stock Exchange. In 1994 Arkansas Best expands its global capabilities through its own non-vessel operating common carrier (NVOCC) operation. In 1995 Worldway acquisition, which includes the purchase of FleetNet America. In 2006 Robert A. Young III retires as CEO after a 42-year career. He remains as Chairman of the Arkansas Best Corporation Board. In 2010 Judy R. McReynolds is named President and CEO of Arkansas Best Corporation. In 2011 Arkansas Best completes the purchase of Albert Moving. In 2012 Arkansas Best purchases Panther Expedited. In 2013 Arkansas Best expands its portfolio of transportation solutions with the formation of ABF Logistics. And finally, in 2014 Arkansas Best is renamed ArcBest Corporation.
My Perspective
I like this company primarily because of its fundamentals and the fact that it has pulled back from the high 40s earlier in 2015. This company has a high growth rate, a low payout rate, has more assets than liabilities, and can easily cover its debts. It's also expanding its footprint in Fort Smith, AR, and bringing almost 1000 jobs to the community. I expect this company to grow for another 90 years and I intend to be one of the company's shareholders and benefit from that growth.
I expect that with an estimated five year growth rate of almost twenty percent, the analysts have suggested price targets that are simply too low. I believe this company's stock could easily double in the next 18 months and the same could possibly be said for the dividend.
I expect to start a position in this company in the next few weeks and then grow that position through dividends and the sale of options. I also expect to be able to easily trade in and out of this stock as well and to sell some very lucrative options because of the stock's high beta (1.74).
If managed properly, this stock could be a lot of fun.
I like this company primarily because of its fundamentals and the fact that it has pulled back from the high 40s earlier in 2015. This company has a high growth rate, a low payout rate, has more assets than liabilities, and can easily cover its debts. It's also expanding its footprint in Fort Smith, AR, and bringing almost 1000 jobs to the community. I expect this company to grow for another 90 years and I intend to be one of the company's shareholders and benefit from that growth.
I expect that with an estimated five year growth rate of almost twenty percent, the analysts have suggested price targets that are simply too low. I believe this company's stock could easily double in the next 18 months and the same could possibly be said for the dividend.
I expect to start a position in this company in the next few weeks and then grow that position through dividends and the sale of options. I also expect to be able to easily trade in and out of this stock as well and to sell some very lucrative options because of the stock's high beta (1.74).
If managed properly, this stock could be a lot of fun.
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