ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - US01877R1086
22.99 USD
+0.24 (+1.05%)
22.99 USD
0 (0%)
Overall ARLP gets a fundamental rating of 5 out of 10. We evaluated ARLP against 208 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of ARLP get a neutral evaluation. Nothing too spectacular is happening here. ARLP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ARLP had positive earnings in the past year.
ARLP had a positive operating cash flow in the past year.
Of the past 5 years ARLP 4 years were profitable.
In the past 5 years ARLP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.13%, ARLP is in the better half of the industry, outperforming 77.88% of the companies in the same industry.
The Return On Equity of ARLP (13.01%) is better than 69.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.91%, ARLP is in the better half of the industry, outperforming 78.37% of the companies in the same industry.
ARLP had an Average Return On Invested Capital over the past 3 years of 18.03%. This is significantly below the industry average of 23.39%.
The last Return On Invested Capital (9.91%) for ARLP is well below the 3 year average (18.03%), which needs to be investigated, but indicates that ARLP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 13.01% | ||
| ROIC | 9.91% |
ROA(3y)18.19%
ROA(5y)11.33%
ROE(3y)28.63%
ROE(5y)17.6%
ROIC(3y)18.03%
ROIC(5y)13.17%
1.3 Margins
ARLP's Profit Margin of 10.18% is in line compared to the rest of the industry. ARLP outperforms 54.33% of its industry peers.
In the last couple of years the Profit Margin of ARLP has declined.
The Operating Margin of ARLP (14.42%) is comparable to the rest of the industry.
ARLP's Operating Margin has improved in the last couple of years.
ARLP has a Gross Margin of 95.44%. This is amongst the best in the industry. ARLP outperforms 99.04% of its industry peers.
In the last couple of years the Gross Margin of ARLP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.42% | ||
| PM (TTM) | 10.18% | ||
| GM | 95.44% |
OM growth 3Y7.55%
OM growth 5Y4.41%
PM growth 3Y9.48%
PM growth 5Y-6.57%
GM growth 3Y-0.43%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARLP is creating value.
Compared to 1 year ago, ARLP has more shares outstanding
Compared to 5 years ago, ARLP has more shares outstanding
The debt/assets ratio for ARLP is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ARLP is 1.58, which is an excellent value as it means it would take ARLP, only 1.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARLP (1.58) is better than 86.06% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that ARLP is not too dependend on debt financing.
ARLP has a better Debt to Equity ratio (0.24) than 67.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.03
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.96 indicates that ARLP should not have too much problems paying its short term obligations.
ARLP has a better Current ratio (1.96) than 76.44% of its industry peers.
A Quick Ratio of 1.37 indicates that ARLP should not have too much problems paying its short term obligations.
ARLP has a Quick ratio of 1.37. This is in the better half of the industry: ARLP outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
ARLP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.23%.
Measured over the past years, ARLP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.26% on average per year.
The Revenue for ARLP has decreased by -27.45% in the past year. This is quite bad
ARLP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y (TTM)-52.23%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-40.26%
Revenue 1Y (TTM)-27.45%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-7.73%
3.2 Future
The Earnings Per Share is expected to grow by 3.48% on average over the next years.
Based on estimates for the next years, ARLP will show a small growth in Revenue. The Revenue will grow by 0.28% on average per year.
EPS Next Y-18.36%
EPS Next 2Y-4.22%
EPS Next 3Y1.3%
EPS Next 5Y3.48%
Revenue Next Year-9.63%
Revenue Next 2Y-4.26%
Revenue Next 3Y-2.35%
Revenue Next 5Y0.28%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.91, which indicates a very decent valuation of ARLP.
Based on the Price/Earnings ratio, ARLP is valued a bit cheaper than the industry average as 66.83% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.14. ARLP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.70, the valuation of ARLP can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARLP is valued a bit cheaper than 75.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ARLP to the average of the S&P500 Index (22.80), we can say ARLP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
ARLP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 72.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARLP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.07 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
ARLP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-4.22%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 10.36%, which is a nice return.
Compared to an average industry Dividend Yield of 6.33, ARLP pays a better dividend. On top of this ARLP pays more dividend than 91.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.36% |
5.2 History
The dividend of ARLP has a limited annual growth rate of 5.46%.
ARLP has been paying a dividend for at least 10 years, so it has a reliable track record.
ARLP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.46%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
ARLP pays out 155.69% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ARLP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP155.69%
EPS Next 2Y-4.22%
EPS Next 3Y1.3%
22.99
+0.24 (+1.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners17.83%
Inst Owner Change-7.79%
Ins Owners29.44%
Ins Owner Change-0.05%
Market Cap2.95B
Analysts82.22
Price Target30.77 (33.84%)
Short Float %1.69%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.36% |
Yearly Dividend2.85
Dividend Growth(5Y)5.46%
DP155.69%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.43%
Min EPS beat(2)-26.07%
Max EPS beat(2)11.21%
EPS beat(4)1
Avg EPS beat(4)-26.13%
Min EPS beat(4)-64.88%
Max EPS beat(4)11.21%
EPS beat(8)2
Avg EPS beat(8)-16.24%
EPS beat(12)5
Avg EPS beat(12)-10.3%
EPS beat(16)7
Avg EPS beat(16)-9.84%
Revenue beat(2)0
Avg Revenue beat(2)-5.64%
Min Revenue beat(2)-7.26%
Max Revenue beat(2)-4.02%
Revenue beat(4)0
Avg Revenue beat(4)-6.56%
Min Revenue beat(4)-8.7%
Max Revenue beat(4)-4.02%
Revenue beat(8)1
Avg Revenue beat(8)-5.63%
Revenue beat(12)1
Avg Revenue beat(12)-5.11%
Revenue beat(16)3
Avg Revenue beat(16)-3.98%
PT rev (1m)1.12%
PT rev (3m)1.12%
EPS NQ rev (1m)-9.75%
EPS NQ rev (3m)-6.72%
EPS NY rev (1m)-9.87%
EPS NY rev (3m)-11.69%
Revenue NQ rev (1m)-4.9%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)-2.67%
Revenue NY rev (3m)-2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 8.7 | ||
| P/S | 1.29 | ||
| P/FCF | 10.07 | ||
| P/OCF | 4.37 | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 5.4 |
EPS(TTM)1.93
EY8.39%
EPS(NY)2.64
Fwd EY11.49%
FCF(TTM)2.28
FCFY9.93%
OCF(TTM)5.26
OCFY22.86%
SpS17.84
BVpS13.96
TBVpS13.96
PEG (NY)N/A
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.13% | ||
| ROE | 13.01% | ||
| ROCE | 12.55% | ||
| ROIC | 9.91% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 10.12% | ||
| OM | 14.42% | ||
| PM (TTM) | 10.18% | ||
| GM | 95.44% | ||
| FCFM | 12.79% |
ROA(3y)18.19%
ROA(5y)11.33%
ROE(3y)28.63%
ROE(5y)17.6%
ROIC(3y)18.03%
ROIC(5y)13.17%
ROICexc(3y)19.36%
ROICexc(5y)14.1%
ROICexgc(3y)19.37%
ROICexgc(5y)14.11%
ROCE(3y)22.82%
ROCE(5y)16.67%
ROICexcg growth 3Y12.19%
ROICexcg growth 5Y6.08%
ROICexc growth 3Y12.32%
ROICexc growth 5Y7.45%
OM growth 3Y7.55%
OM growth 5Y4.41%
PM growth 3Y9.48%
PM growth 5Y-6.57%
GM growth 3Y-0.43%
GM growth 5Y0.04%
F-Score4
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.58 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 133.82% | ||
| Cap/Sales | 16.67% | ||
| Interest Coverage | 7.03 | ||
| Cash Conversion | 109.59% | ||
| Profit Quality | 125.68% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | N/A |
F-Score4
WACC9.65%
ROIC/WACC1.03
Cap/Depr(3y)138.02%
Cap/Depr(5y)99.95%
Cap/Sales(3y)15.38%
Cap/Sales(5y)12.62%
Profit Quality(3y)85.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-52.23%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-40.26%
EPS Next Y-18.36%
EPS Next 2Y-4.22%
EPS Next 3Y1.3%
EPS Next 5Y3.48%
Revenue 1Y (TTM)-27.45%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-7.73%
Revenue Next Year-9.63%
Revenue Next 2Y-4.26%
Revenue Next 3Y-2.35%
Revenue Next 5Y0.28%
EBIT growth 1Y-54.04%
EBIT growth 3Y24.72%
EBIT growth 5Y9.14%
EBIT Next Year37.48%
EBIT Next 3Y15.79%
EBIT Next 5Y11.31%
FCF growth 1Y-58.54%
FCF growth 3Y4.98%
FCF growth 5Y10.84%
OCF growth 1Y-36.1%
OCF growth 3Y23.61%
OCF growth 5Y9.3%