Summary Points
- ARCB trades at a discount to competitors; however, relative growth has been average and
EBITDA margins are relatively lower. - Majority of business is asset-intensive with high capex requirements and limited control over revenues and expenses.
- Investors should consider off-balance sheet items, pension obligations and make adjustments for equipment financing.
ArcBest (NASDAQ:ARCB), formerly Arkansas Best, is a freight transport and logistics company. There are several publicly listed competitors such as Old Dominion (NASDAQ:ODFL), Heartland Express (NASDAQ:HTLD), Swift Transportation (NYSE:SWFT), Werner (NASDAQ:WERN) and others. The stock appeared in my value model and when I saw that it traded at a discount to its industry I decided to take a closer look.
