ARCH RESOURCES INC (ARCH)
US03940R1077 - Common Stock
Overall ARCH gets a fundamental rating of 6 out of 10. We evaluated ARCH against 154 industry peers in the Metals & Mining industry. ARCH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARCH has a bad growth rate and is valued cheaply. With these ratings, ARCH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ARCH was profitable.
In the past year ARCH had a positive cash flow from operations.
ARCH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARCH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ARCH (13.22%) is better than 93.51% of its industry peers.
Looking at the Return On Equity, with a value of 21.94%, ARCH belongs to the top of the industry, outperforming 91.56% of the companies in the same industry.
ARCH has a better Return On Invested Capital (14.81%) than 88.96% 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 8.82%.
The 3 year average ROIC (29.63%) for ARCH is well above the current ROIC(14.81%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.22% | ||
| ROE | 21.94% | ||
| ROIC | 14.81% |
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 (10.89%) than 81.17% of its industry peers.
In the last couple of years the Profit Margin of ARCH has grown nicely.
ARCH's Operating Margin of 12.56% is fine compared to the rest of the industry. ARCH outperforms 68.83% of its industry peers.
In the last couple of years the Operating Margin of ARCH has grown nicely.
The Gross Margin of ARCH (20.91%) is better than 61.04% of its industry peers.
In the last couple of years the Gross Margin of ARCH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.56% | ||
| PM (TTM) | 10.89% | ||
| GM | 20.91% |
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
ARCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ARCH has been increased compared to 1 year ago.
ARCH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARCH has an improved debt to assets ratio.
2.2 Solvency
ARCH has an Altman-Z score of 4.86. This indicates that ARCH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.86, ARCH is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
The Debt to FCF ratio of ARCH is 0.33, which is an excellent value as it means it would take ARCH, only 0.33 years of fcf income to pay off all of its debts.
ARCH's Debt to FCF ratio of 0.33 is amongst the best of the industry. ARCH outperforms 91.56% of its industry peers.
ARCH has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
ARCH has a Debt to Equity ratio of 0.07. This is in the better half of the industry: ARCH outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 4.86 |
ROIC/WACC1.66
WACC8.95%
2.3 Liquidity
A Current Ratio of 2.64 indicates that ARCH has no problem at all paying its short term obligations.
With a Current ratio value of 2.64, ARCH perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
ARCH has a Quick Ratio of 1.89. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
ARCH has a Quick ratio (1.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.89 |
3. Growth
3.1 Past
The earnings per share for ARCH have decreased strongly by -65.09% in the last year.
Measured over the past years, ARCH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
ARCH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.68%.
ARCH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)-65.09%
EPS 3YN/A
EPS 5Y12.55%
EPS growth Q2Q-70.26%
Revenue 1Y (TTM)-20.68%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Revenue growth Q2Q-21.81%
3.2 Future
ARCH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.39% yearly.
The Revenue is expected to decrease by -6.65% on average over the next years.
EPS Next Y-11.88%
EPS Next 2Y-0.95%
EPS Next 3Y-6.39%
EPS Next 5YN/A
Revenue Next Year-15.73%
Revenue Next 2Y-6.73%
Revenue Next 3Y-6.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ARCH is valuated reasonably with a Price/Earnings ratio of 9.42.
Based on the Price/Earnings ratio, ARCH is valued cheaper than 86.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ARCH is valued rather cheaply.
A Price/Forward Earnings ratio of 6.79 indicates a rather cheap valuation of ARCH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 94.81% of the companies listed in the same industry.
ARCH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCH is valued cheaper than 85.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARCH is valued cheaper than 94.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.51 | ||
| EV/EBITDA | 5.22 |
4.3 Compensation for Growth
The excellent profitability rating of ARCH may justify a higher PE ratio.
ARCH's earnings are expected to decrease with -6.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-0.95%
EPS Next 3Y-6.39%
5. Dividend
5.1 Amount
ARCH has a yearly dividend return of 0.63%, which is pretty low.
ARCH's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to an average S&P500 Dividend Yield of 2.41, ARCH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of ARCH is nicely growing with an annual growth rate of 47.85%!
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
56.81% 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.
DP56.81%
EPS Next 2Y-0.95%
EPS Next 3Y-6.39%
ARCH RESOURCES INC
NYSE:ARCH (5/6/2024, 4:05:00 PM)
After market: 160.16 0 (0%)160.16
-1.27 (-0.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 6.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.22% | ||
| ROE | 21.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.56% | ||
| PM (TTM) | 10.89% | ||
| GM | 20.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-65.09%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.68%
Revenue growth 3Y28.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y