ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
Overall ARLP gets a fundamental rating of 6 out of 10. We evaluated ARLP against 212 industry peers in the Oil, Gas & Consumable Fuels industry. While ARLP has a great profitability rating, there are some minor concerns on its financial health. ARLP has a correct valuation and a medium growth rate. ARLP also has an excellent dividend rating. These ratings could make ARLP a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year ARLP was profitable.
In the past year ARLP had a positive cash flow from operations.
ARLP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARLP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.49%, ARLP belongs to the best of the industry, outperforming 91.98% of the companies in the same industry.
ARLP's Return On Equity of 27.82% is amongst the best of the industry. ARLP outperforms 88.21% of its industry peers.
The Return On Invested Capital of ARLP (17.24%) is better than 91.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARLP is significantly below the industry average of 25.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 27.82% | ||
| ROIC | 17.24% |
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 16.45% is fine compared to the rest of the industry. ARLP outperforms 65.57% of its industry peers.
ARLP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.89%, ARLP is in line with its industry, outperforming 50.00% of the companies in the same industry.
ARLP's Operating Margin has improved in the last couple of years.
The Gross Margin of ARLP (93.93%) is better than 99.06% 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 | 18.89% | ||
| PM (TTM) | 16.45% | ||
| GM | 93.93% |
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 just above the Cost of Capital (WACC), so ARLP is still creating some value.
The number of shares outstanding for ARLP has been increased compared to 1 year ago.
The number of shares outstanding for ARLP has been increased compared to 5 years ago.
Compared to 1 year ago, ARLP has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ARLP is 1.35, which is an excellent value as it means it would take ARLP, only 1.35 years of fcf income to pay off all of its debts.
ARLP has a better Debt to FCF ratio (1.35) than 87.74% of its industry peers.
ARLP has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
ARLP has a Debt to Equity ratio of 0.25. This is in the better half of the industry: ARLP outperforms 66.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.61
WACC10.73%
2.3 Liquidity
A Current Ratio of 2.20 indicates that ARLP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.20, ARLP is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that ARLP should not have too much problems paying its short term obligations.
ARLP has a Quick ratio of 1.68. This is in the better half of the industry: ARLP outperforms 74.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
ARLP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.65%.
ARLP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.26% yearly.
Looking at the last year, ARLP shows a quite strong growth in Revenue. The Revenue has grown by 16.97% in the last year.
The Revenue has been growing slightly by 4.53% on average over the past years.
EPS 1Y (TTM)-50.65%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-50.41%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-17.07%
3.2 Future
ARLP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.80% yearly.
The Revenue is expected to grow by 1.51% on average over the next years.
EPS Next Y-9.95%
EPS Next 2Y5.68%
EPS Next 3Y6.65%
EPS Next 5Y7.8%
Revenue Next Year-6.92%
Revenue Next 2Y-1.54%
Revenue Next 3Y-0.57%
Revenue Next 5Y1.51%
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 stable.
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 11.96, which indicates a very decent valuation of ARLP.
ARLP's Price/Earnings ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 60.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of ARLP to the average of the S&P500 Index (28.22), we can say ARLP is valued rather cheaply.
The Price/Forward Earnings ratio is 8.44, which indicates a very decent valuation of ARLP.
Based on the Price/Forward Earnings ratio, ARLP is valued a bit cheaper than 74.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. ARLP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 71.70% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ARLP is valued a bit cheaper than the industry average as 72.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 4.28 |
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 2Y5.68%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 10.61%, which is a nice return.
Compared to an average industry Dividend Yield of 7.34, ARLP pays a better dividend. On top of this ARLP pays more dividend than 88.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.61% |
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 Years2
Div Non Decr Years4
5.3 Sustainability
ARLP pays out 71.28% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ARLP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.28%
EPS Next 2Y5.68%
EPS Next 3Y6.65%
27.16
+0.76 (+2.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners19.18%
Inst Owner Change3.2%
Ins Owners29.78%
Ins Owner Change0.02%
Market Cap3.49B
Analysts82.22
Price Target30.77 (13.29%)
Short Float %1.51%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.61% |
Yearly Dividend2.85
Dividend Growth(5Y)5.46%
DP71.28%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.82%
Min EPS beat(2)-64.88%
Max EPS beat(2)-24.76%
EPS beat(4)1
Avg EPS beat(4)-20.31%
Min EPS beat(4)-64.88%
Max EPS beat(4)27.21%
EPS beat(8)3
Avg EPS beat(8)-12.62%
EPS beat(12)5
Avg EPS beat(12)-11.19%
EPS beat(16)7
Avg EPS beat(16)-6.54%
Revenue beat(2)0
Avg Revenue beat(2)-7.48%
Min Revenue beat(2)-8.7%
Max Revenue beat(2)-6.26%
Revenue beat(4)1
Avg Revenue beat(4)-4.98%
Min Revenue beat(4)-8.7%
Max Revenue beat(4)3.04%
Revenue beat(8)1
Avg Revenue beat(8)-5.3%
Revenue beat(12)2
Avg Revenue beat(12)-4.2%
Revenue beat(16)3
Avg Revenue beat(16)-4.3%
PT rev (1m)2.26%
PT rev (3m)2.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.14%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-6.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 8.44 | ||
| P/S | 1.13 | ||
| P/FCF | 9.98 | ||
| P/OCF | 4.34 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 4.28 |
EPS(TTM)2.27
EY8.36%
EPS(NY)3.22
Fwd EY11.84%
FCF(TTM)2.72
FCFY10.02%
OCF(TTM)6.25
OCFY23.02%
SpS24.14
BVpS14.27
TBVpS14.27
PEG (NY)N/A
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.49% | ||
| ROE | 27.82% | ||
| ROCE | 21.83% | ||
| ROIC | 17.24% | ||
| ROICexc | 18.17% | ||
| ROICexgc | 18.17% | ||
| OM | 18.89% | ||
| PM (TTM) | 16.45% | ||
| GM | 93.93% | ||
| FCFM | 11.28% |
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-Score5
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 158.87% | ||
| Cap/Sales | 14.63% | ||
| Interest Coverage | 13.06 | ||
| Cash Conversion | 92.21% | ||
| Profit Quality | 68.58% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | N/A |
F-Score5
WACC10.73%
ROIC/WACC1.61
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)-50.65%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-50.41%
EPS Next Y-9.95%
EPS Next 2Y5.68%
EPS Next 3Y6.65%
EPS Next 5Y7.8%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-17.07%
Revenue Next Year-6.92%
Revenue Next 2Y-1.54%
Revenue Next 3Y-0.57%
Revenue Next 5Y1.51%
EBIT growth 1Y-12.9%
EBIT growth 3Y24.72%
EBIT growth 5Y9.14%
EBIT Next Year40.58%
EBIT Next 3Y16.51%
EBIT Next 5Y13.59%
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%