ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
We assign a fundamental rating of 6 out of 10 to ARLP. ARLP was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. ARLP scores excellent on profitability, but 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 would make ARLP suitable 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.
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 17.49%, ARLP belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
ARLP has a Return On Equity of 27.82%. This is amongst the best in the industry. ARLP outperforms 88.21% of its industry peers.
ARLP's Return On Invested Capital of 17.24% is amongst the best of the industry. ARLP outperforms 91.04% of its industry peers.
ARLP had an Average Return On Invested Capital over the past 3 years of 18.03%. This is significantly below the industry average of 27.42%.
| 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 has a better Profit Margin (16.45%) than 65.09% of its industry peers.
In the last couple of years the Profit Margin of ARLP has declined.
ARLP has a Operating Margin of 18.89%. This is comparable to the rest of the industry: ARLP outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of ARLP has grown nicely.
ARLP's Gross Margin of 93.93% is amongst the best of the industry. ARLP outperforms 99.06% of its industry peers.
ARLP's Gross Margin has been stable in the last couple of years.
| 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
ARLP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ARLP has been increased compared to 1 year ago.
ARLP has more shares outstanding than it did 5 years ago.
ARLP has a worse debt/assets ratio than last year.
2.2 Solvency
ARLP has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.35, ARLP belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
ARLP has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.25, ARLP is doing good in the industry, outperforming 66.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.6
WACC10.81%
2.3 Liquidity
A Current Ratio of 2.20 indicates that ARLP has no problem at all paying its short term obligations.
ARLP has a better Current ratio (2.20) than 79.25% of its industry peers.
ARLP has a Quick Ratio of 1.68. This is a normal value and indicates that ARLP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ARLP (1.68) is better than 74.53% 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 -40.50%.
ARLP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.26% yearly.
ARLP shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.80%.
Measured over the past years, ARLP shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
EPS 1Y (TTM)-40.5%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)20.8%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-5.65%
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.
ARLP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.51% yearly.
EPS Next Y-9.95%
EPS Next 2Y5.68%
EPS Next 3Y6.65%
EPS Next 5Y7.8%
Revenue Next Year-6.64%
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
A Price/Earnings ratio of 9.53 indicates a reasonable valuation of ARLP.
Compared to the rest of the industry, the Price/Earnings ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 68.87% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARLP to the average of the S&P500 Index (28.92), we can say ARLP is valued rather cheaply.
ARLP is valuated reasonably with a Price/Forward Earnings ratio of 10.58.
64.15% of the companies in the same industry are more expensive than ARLP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.65. ARLP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARLP is valued a bit cheaper than 71.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARLP is valued a bit cheaper than 71.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 4.43 |
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)1.03
EPS Next 2Y5.68%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 10.31%, which is a nice return.
Compared to an average industry Dividend Yield of 7.41, ARLP pays a better dividend. On top of this ARLP pays more dividend than 87.74% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.31% |
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.
ARLP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.28%
EPS Next 2Y5.68%
EPS Next 3Y6.65%
27.45
+0.24 (+0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners19.18%
Inst Owner Change2.48%
Ins Owners29.78%
Ins Owner Change0.02%
Market Cap3.53B
Analysts82.22
Price Target30.09 (9.62%)
Short Float %3.16%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.31% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.76%
EPS NY rev (1m)-9.73%
EPS NY rev (3m)-20.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 10.58 | ||
| P/S | 1.14 | ||
| P/FCF | 10.08 | ||
| P/OCF | 4.39 | ||
| P/B | 1.92 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)2.88
EY10.49%
EPS(NY)2.59
Fwd EY9.45%
FCF(TTM)2.72
FCFY9.92%
OCF(TTM)6.25
OCFY22.78%
SpS24.14
BVpS14.27
TBVpS14.27
PEG (NY)N/A
PEG (5Y)1.03
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
WACC10.81%
ROIC/WACC1.6
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)-40.5%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-72.73%
EPS Next Y-9.95%
EPS Next 2Y5.68%
EPS Next 3Y6.65%
EPS Next 5Y7.8%
Revenue 1Y (TTM)20.8%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-5.65%
Revenue Next Year-6.64%
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%