ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
USA - NASDAQ:ARLP - US01877R1086
23.68 USD
-0.25 (-1.04%)
23.52 USD
-0.16 (-0.68%)
Taking everything into account, ARLP scores 5 out of 10 in our fundamental rating. ARLP was compared to 210 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 on the other hand it scores bad on growth.
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.
ARLP had positive earnings in 4 of the past 5 years.
In the past 5 years ARLP always reported a positive cash flow from operatings.
1.2 Ratios
ARLP has a Return On Assets of 8.13%. This is in the better half of the industry: ARLP outperforms 79.05% of its industry peers.
With a decent Return On Equity value of 13.01%, ARLP is doing good in the industry, outperforming 70.00% of the companies in the same industry.
ARLP has a better Return On Invested Capital (9.91%) than 79.05% of its industry peers.
ARLP had an Average Return On Invested Capital over the past 3 years of 18.03%. This is below the industry average of 21.66%.
The 3 year average ROIC (18.03%) for ARLP is well above the current ROIC(9.91%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of ARLP (10.18%) is comparable to the rest of the industry.
ARLP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 14.42%, ARLP perfoms like the industry average, outperforming 46.19% of the companies in the same industry.
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 99.05% 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
ARLP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ARLP has more shares outstanding
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
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.
With an excellent Debt to FCF ratio value of 1.58, ARLP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that ARLP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, ARLP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.11
WACC8.91%
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 75.71% 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.
ARLP's Quick ratio of 1.37 is fine compared to the rest of the industry. ARLP outperforms 69.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for ARLP have decreased strongly by -52.23% in the last year.
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.
ARLP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.45%.
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
ARLP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.48% yearly.
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
A Price/Earnings ratio of 12.27 indicates a correct 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 64.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, ARLP is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.96, the valuation of ARLP can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 76.67% of the companies listed in the same industry.
ARLP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than ARLP, based on the Enterprise Value to EBITDA ratio.
ARLP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 75.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.38 | ||
| EV/EBITDA | 5.6 |
4.3 Compensation for Growth
The decent profitability rating of ARLP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y-4.22%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 10.03%, which is a nice return.
ARLP's Dividend Yield is rather good when compared to the industry average which is at 6.00. ARLP pays more dividend than 91.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.03% |
5.2 History
The dividend of ARLP has a limited annual growth rate of 5.46%.
ARLP has paid a dividend for at least 10 years, which is 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.
ARLP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP155.69%
EPS Next 2Y-4.22%
EPS Next 3Y1.3%
23.68
-0.25 (-1.04%)
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 Change0%
Market Cap3.04B
Analysts82.22
Price Target30.77 (29.94%)
Short Float %1.35%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.03% |
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)0%
PT rev (3m)1.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 8.96 | ||
| P/S | 1.33 | ||
| P/FCF | 10.38 | ||
| P/OCF | 4.51 | ||
| P/B | 1.7 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.6 |
EPS(TTM)1.93
EY8.15%
EPS(NY)2.64
Fwd EY11.16%
FCF(TTM)2.28
FCFY9.64%
OCF(TTM)5.26
OCFY22.2%
SpS17.84
BVpS13.96
TBVpS13.96
PEG (NY)N/A
PEG (5Y)1.33
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
WACC8.91%
ROIC/WACC1.11
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%