ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
Taking everything into account, ARLP scores 6 out of 10 in our fundamental rating. ARLP was compared to 213 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 decent growth rate and is not valued too expensively. ARLP also has an excellent dividend rating. These ratings would make ARLP suitable for dividend investing!
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 17.49%. This is amongst the best in the industry. ARLP outperforms 93.43% of its industry peers.
ARLP has a Return On Equity of 27.82%. This is amongst the best in the industry. ARLP outperforms 89.20% of its industry peers.
ARLP has a better Return On Invested Capital (17.24%) than 92.02% 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 25.87%.
| 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 Profit Margin of 16.45%. This is in the better half of the industry: ARLP outperforms 66.20% of its industry peers.
ARLP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 18.89%, ARLP perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
In the last couple of years the Operating Margin of ARLP has grown nicely.
ARLP has a better Gross Margin (93.93%) 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.
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 1.35, 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.
Looking at the Debt to FCF ratio, with a value of 1.35, ARLP belongs to the top of the industry, outperforming 88.26% 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.
ARLP has a better Debt to Equity ratio (0.25) than 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.61
WACC10.7%
2.3 Liquidity
ARLP has a Current Ratio of 2.20. This indicates that ARLP is financially healthy and has no problem in meeting its short term obligations.
ARLP has a better Current ratio (2.20) than 78.40% of its industry peers.
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 74.65% 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 -51.30%.
ARLP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.26% yearly.
The Revenue has grown by 16.97% in the past year. This is quite good.
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)-51.3%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-52.89%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-17.07%
3.2 Future
The Earnings Per Share is expected to grow by 7.80% 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 1.51% on average per year.
EPS Next Y-7.56%
EPS Next 2Y-2.88%
EPS Next 3Y1.76%
EPS Next 5Y7.8%
Revenue Next Year-7.03%
Revenue Next 2Y-4.3%
Revenue Next 3Y-1.73%
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 11.75, 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 61.03% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.82. ARLP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.69, the valuation of ARLP can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARLP is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ARLP to the average of the S&P500 Index (21.76), we can say ARLP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
ARLP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 74.18% of the companies in the same industry.
ARLP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 76.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| 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)1.27
EPS Next 2Y-2.88%
EPS Next 3Y1.76%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 10.52%, which is a nice return.
Compared to an average industry Dividend Yield of 6.77, ARLP pays a better dividend. On top of this ARLP pays more dividend than 88.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.52% |
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 Years2
Div Non Decr Years4
5.3 Sustainability
71.28% of the earnings are spent on dividend by ARLP. 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 2Y-2.88%
EPS Next 3Y1.76%
26.32
-0.1 (-0.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners19.18%
Inst Owner Change-2.5%
Ins Owners29.78%
Ins Owner Change0.02%
Market Cap3.38B
Analysts82.22
Price Target30.43 (15.62%)
Short Float %1.56%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.52% |
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)1.13%
PT rev (3m)1.13%
EPS NQ rev (1m)-14.83%
EPS NQ rev (3m)-8.08%
EPS NY rev (1m)2.65%
EPS NY rev (3m)-7.34%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-4.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.69 | ||
| P/S | 1.09 | ||
| P/FCF | 9.67 | ||
| P/OCF | 4.21 | ||
| P/B | 1.84 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 4.28 |
EPS(TTM)2.24
EY8.51%
EPS(NY)2.72
Fwd EY10.32%
FCF(TTM)2.72
FCFY10.34%
OCF(TTM)6.25
OCFY23.76%
SpS24.14
BVpS14.27
TBVpS14.27
PEG (NY)N/A
PEG (5Y)1.27
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
WACC10.7%
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)-51.3%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-52.89%
EPS Next Y-7.56%
EPS Next 2Y-2.88%
EPS Next 3Y1.76%
EPS Next 5Y7.8%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-17.07%
Revenue Next Year-7.03%
Revenue Next 2Y-4.3%
Revenue Next 3Y-1.73%
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%