Arch Resources Inc (ARCH) Stock Fundamental Analysis
NYSE:ARCH - New York Stock Exchange, Inc. - US03940R1077 - Common Stock - Currency: USD
Taking everything into account, ARCH scores 6 out of 10 in our fundamental rating. ARCH was compared to 153 industry peers in the Metals & Mining industry. ARCH gets an excellent profitability rating and is at the same time showing great financial health properties. ARCH is cheap, but on the other hand it scores bad on growth. These ratings would make ARCH suitable for value investing!
1. Profitability
1.1 Basic Checks
ARCH had positive earnings in the past year.
ARCH had a positive operating cash flow in the past year.
Of the past 5 years ARCH 4 years were profitable.
In the past 5 years ARCH always reported a positive cash flow from operatings.
1.2 Ratios
ARCH has a better Return On Assets (7.57%) than 80.95% of its industry peers.
ARCH has a Return On Equity of 12.43%. This is amongst the best in the industry. ARCH outperforms 80.95% of its industry peers.
ARCH has a Return On Invested Capital of 8.85%. This is amongst the best in the industry. ARCH outperforms 80.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARCH is significantly above the industry average of 8.53%.
The 3 year average ROIC (29.63%) for ARCH is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROIC | 8.85% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
1.3 Margins
ARCH has a better Profit Margin (6.69%) than 75.51% of its industry peers.
ARCH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.76%, ARCH is doing good in the industry, outperforming 62.59% of the companies in the same industry.
In the last couple of years the Operating Margin of ARCH has grown nicely.
ARCH has a Gross Margin (17.11%) which is comparable to the rest of the industry.
ARCH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% |
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARCH is creating value.
Compared to 1 year ago, ARCH has more shares outstanding
The number of shares outstanding for ARCH has been increased compared to 5 years ago.
The debt/assets ratio for ARCH has been reduced compared to a year ago.
2.2 Solvency
ARCH has an Altman-Z score of 4.29. This indicates that ARCH is financially healthy and has little risk of bankruptcy at the moment.
ARCH has a better Altman-Z score (4.29) than 65.99% of its industry peers.
There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
ARCH has a Current Ratio of 2.01. This indicates that ARCH is financially healthy and has no problem in meeting its short term obligations.
ARCH has a Current ratio (2.01) which is in line with its industry peers.
ARCH has a Quick Ratio of 1.41. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ARCH (1.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
ARCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.17%.
ARCH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.55% yearly.
Looking at the last year, ARCH shows a very negative growth in Revenue. The Revenue has decreased by -17.03% in the last year.
Measured over the past years, ARCH shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
3.2 Future
Based on estimates for the next years, ARCH will show a decrease in Earnings Per Share. The EPS will decrease by -5.93% on average per year.
The Revenue is expected to decrease by -7.19% on average over the next years.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.13 indicates a correct valuation of ARCH.
ARCH's Price/Earnings ratio is a bit cheaper when compared to the industry. ARCH is cheaper than 79.59% of the companies in the same industry.
ARCH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
A Price/Forward Earnings ratio of 6.77 indicates a rather cheap valuation of ARCH.
89.12% of the companies in the same industry are more expensive than ARCH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARCH to the average of the S&P500 Index (21.20), we can say ARCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
77.55% of the companies in the same industry are more expensive than ARCH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ARCH is valued cheaper than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
The excellent profitability rating of ARCH may justify a higher PE ratio.
A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
ARCH's Dividend Yield is a higher than the industry average which is at 2.90.
With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
50.86% of the earnings are spent on dividend by ARCH. This is a bit on the high side, but may be sustainable.
ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
134.83
+0.94 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner Change-2.24%
Ins Owners2.44%
Ins Owner Change-281.34%
Market Cap2.44B
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.91 | ||
| P/FCF | 11.58 | ||
| P/OCF | 6.2 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROCE | 10.52% | ||
| ROIC | 8.85% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% | ||
| FCFM | 7.87% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.1% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 117.55% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.29 |
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%