ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
We assign a fundamental rating of 4 out of 10 to ARLP. ARLP was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While ARLP is still in line with the averages on profitability rating, there are concerns on its financial health. ARLP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ARLP had positive earnings 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
With a decent Return On Assets value of 8.15%, ARLP is doing good in the industry, outperforming 78.37% of the companies in the same industry.
ARLP has a Return On Equity of 13.05%. This is in the better half of the industry: ARLP outperforms 67.79% 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 75.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARLP is significantly below the industry average of 23.99%.
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 | 8.15% | ||
| ROE | 13.05% | ||
| 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 has a Profit Margin (10.21%) which is comparable to the rest of the industry.
ARLP's Profit Margin has declined in the last couple of years.
ARLP has a Operating Margin (14.42%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARLP has grown nicely.
ARLP's Gross Margin of 95.44% is amongst the best of the industry. ARLP outperforms 99.52% 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) | 10.21% | ||
| 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.
ARLP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARLP has been increased compared to 5 years ago.
The debt/assets ratio for ARLP is higher compared to a year ago.
2.2 Solvency
ARLP has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
ARLP has a Debt to Equity ratio of 0.24. This is in the better half of the industry: ARLP outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC1.07
WACC9.25%
2.3 Liquidity
ARLP has a Current Ratio of 1.96. This is a normal value and indicates that ARLP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARLP (1.96) is better than 77.40% of its industry peers.
ARLP has a Quick Ratio of 1.37. This is a normal value and indicates that ARLP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, ARLP is in the better half of the industry, outperforming 70.19% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
Looking at the last year, ARLP shows a very negative growth in Revenue. The Revenue has decreased by -27.45% in the last year.
The Revenue has been growing slightly by 4.53% on average over the past years.
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
ARLP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.15% yearly.
The Revenue is expected to grow by 0.80% on average over the next years.
EPS Next Y-9.42%
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
EPS Next 5Y4.15%
Revenue Next Year-7.11%
Revenue Next 2Y-3.81%
Revenue Next 3Y-1.73%
Revenue Next 5Y0.8%
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
With a Price/Earnings ratio of 13.68, ARLP is valued correctly.
ARLP's Price/Earnings is on the same level as the industry average.
ARLP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.24.
The Price/Forward Earnings ratio is 9.73, which indicates a very decent valuation of ARLP.
Based on the Price/Forward Earnings ratio, ARLP is valued a bit cheaper than 66.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.42. ARLP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
ARLP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 63.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The decent profitability rating of ARLP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.03%, ARLP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, ARLP pays a better dividend. On top of this ARLP pays more dividend than 85.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.03% |
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 77.57% of its income as dividend. This is not a sustainable payout ratio.
ARLP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.57%
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
26.41
-0.31 (-1.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.8%
Inst Owner Change-1.6%
Ins Owners29.44%
Ins Owner Change0.07%
Market Cap3.39B
Analysts82.22
Price Target30.43 (15.22%)
Short Float %1.79%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.03% |
Yearly Dividend2.85
Dividend Growth(5Y)5.46%
DP77.57%
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)0%
PT rev (3m)-1.11%
EPS NQ rev (1m)-14.83%
EPS NQ rev (3m)-14.83%
EPS NY rev (1m)0%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 9.73 | ||
| P/S | 1.48 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.89 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)1.93
EY7.31%
EPS(NY)2.71
Fwd EY10.27%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS17.84
BVpS13.96
TBVpS13.96
PEG (NY)N/A
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 13.05% | ||
| ROCE | 12.55% | ||
| ROIC | 9.91% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 10.12% | ||
| OM | 14.42% | ||
| PM (TTM) | 10.21% | ||
| GM | 95.44% | ||
| FCFM | N/A |
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-ScoreN/A
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC9.25%
ROIC/WACC1.07
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-9.42%
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
EPS Next 5Y4.15%
Revenue 1Y (TTM)-27.45%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-7.73%
Revenue Next Year-7.11%
Revenue Next 2Y-3.81%
Revenue Next 3Y-1.73%
Revenue Next 5Y0.8%
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-16.88%
FCF growth 3Y4.98%
FCF growth 5Y10.84%
OCF growth 1Y-2.56%
OCF growth 3Y23.61%
OCF growth 5Y9.3%