ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
USA - NASDAQ:ARLP - US01877R1086
24.4 USD
-0.6 (-2.4%)
24.4 USD
0 (0%)
Overall ARLP gets a fundamental rating of 5 out of 10. We evaluated ARLP against 210 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 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.
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 8.13%, ARLP belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
ARLP has a Return On Equity of 13.01%. This is in the better half of the industry: ARLP outperforms 70.95% of its industry peers.
ARLP has a Return On Invested Capital of 9.91%. This is amongst the best in the industry. ARLP outperforms 80.48% 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 21.78%.
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
ARLP has a Profit Margin (10.18%) which is in line with its industry peers.
ARLP's Profit Margin has declined in the last couple of years.
ARLP has a Operating Margin of 14.42%. This is comparable to the rest of the industry: ARLP outperforms 47.14% of its industry peers.
ARLP's Operating Margin has improved in the last couple of years.
ARLP's Gross Margin of 95.44% is amongst the best of the industry. ARLP outperforms 99.05% of its industry peers.
ARLP's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARLP is creating 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.
The debt/assets ratio for ARLP is higher compared to a year ago.
2.2 Solvency
ARLP has a debt to FCF ratio of 1.58. This is a very positive value and a sign of high solvency as it would only need 1.58 years to pay back of all of its debts.
ARLP has a Debt to FCF ratio of 1.58. This is amongst the best in the industry. ARLP outperforms 86.19% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that ARLP is not too dependend on debt financing.
ARLP has a better Debt to Equity ratio (0.24) than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.13
WACC8.75%
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.
ARLP has a better Current ratio (1.96) than 76.19% of its industry peers.
A Quick Ratio of 1.37 indicates that ARLP should not have too much problems paying its short term obligations.
ARLP has a better Quick ratio (1.37) than 68.10% of its industry peers.
| 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 -43.18%.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -28.27%.
ARLP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y (TTM)-43.18%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%10.61%
Revenue 1Y (TTM)-28.27%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-6.88%
3.2 Future
Based on estimates for the next years, ARLP will show a small growth in Earnings Per Share. The EPS will grow by 3.29% on average per year.
The Revenue is expected to grow by 0.61% on average over the next years.
EPS Next Y-13.67%
EPS Next 2Y-2.85%
EPS Next 3Y1.36%
EPS Next 5Y3.29%
Revenue Next Year-11.36%
Revenue Next 2Y-4.46%
Revenue Next 3Y-1.9%
Revenue Next 5Y0.61%
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
The Price/Earnings ratio is 12.20, which indicates a correct valuation of ARLP.
Based on the Price/Earnings ratio, ARLP is valued a bit cheaper than the industry average as 60.95% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.83, ARLP is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.98, the valuation of ARLP can be described as very reasonable.
80.48% of the companies in the same industry are more expensive than ARLP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARLP to the average of the S&P500 Index (32.68), we can say ARLP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARLP is valued a bit cheaper than the industry average as 69.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARLP is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 5.87 |
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)1.32
EPS Next 2Y-2.85%
EPS Next 3Y1.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.62%, ARLP is a good candidate for dividend investing.
ARLP's Dividend Yield is rather good when compared to the industry average which is at 6.76. ARLP pays more dividend than 88.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.62% |
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 155.69% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ARLP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP155.69%
EPS Next 2Y-2.85%
EPS Next 3Y1.36%
24.4
-0.6 (-2.4%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.88%
Inst Owner Change-5.17%
Ins Owners29.44%
Ins Owner Change0%
Market Cap3.13B
Revenue(TTM)2.25B
Net Income(TTM)233.20M
Analysts82.22
Price Target30.73 (25.94%)
Short Float %1.11%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.62% |
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)-0.14%
PT rev (3m)0.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.43%
EPS NY rev (1m)0.74%
EPS NY rev (3m)-9.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 8.98 | ||
| P/S | 1.37 | ||
| P/FCF | 10.69 | ||
| P/OCF | 4.64 | ||
| P/B | 1.75 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 5.87 |
EPS(TTM)2
EY8.2%
EPS(NY)2.72
Fwd EY11.14%
FCF(TTM)2.28
FCFY9.35%
OCF(TTM)5.26
OCFY21.54%
SpS17.84
BVpS13.96
TBVpS13.96
PEG (NY)N/A
PEG (5Y)1.32
Graham Number25.07
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%
ROICexgc growth 3Y12.19%
ROICexgc 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
WACC8.75%
ROIC/WACC1.13
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)-43.18%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%10.61%
EPS Next Y-13.67%
EPS Next 2Y-2.85%
EPS Next 3Y1.36%
EPS Next 5Y3.29%
Revenue 1Y (TTM)-28.27%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-6.88%
Revenue Next Year-11.36%
Revenue Next 2Y-4.46%
Revenue Next 3Y-1.9%
Revenue Next 5Y0.61%
EBIT growth 1Y-54.04%
EBIT growth 3Y24.72%
EBIT growth 5Y9.14%
EBIT Next Year37.48%
EBIT Next 3Y15.79%
EBIT Next 5Y11.26%
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%
ALLIANCE RESOURCE PARTNERS / ARLP FAQ
What is the ChartMill fundamental rating of ALLIANCE RESOURCE PARTNERS (ARLP) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ARLP.
Can you provide the valuation status for ALLIANCE RESOURCE PARTNERS?
ChartMill assigns a valuation rating of 6 / 10 to ALLIANCE RESOURCE PARTNERS (ARLP). This can be considered as Fairly Valued.
Can you provide the profitability details for ALLIANCE RESOURCE PARTNERS?
ALLIANCE RESOURCE PARTNERS (ARLP) has a profitability rating of 7 / 10.
Can you provide the financial health for ARLP stock?
The financial health rating of ALLIANCE RESOURCE PARTNERS (ARLP) is 5 / 10.
Can you provide the expected EPS growth for ARLP stock?
The Earnings per Share (EPS) of ALLIANCE RESOURCE PARTNERS (ARLP) is expected to decline by -13.67% in the next year.