ALLIANCE RESOURCE PARTNERS (ARLP)
US01877R1086
Taking everything into account, ARLP scores 6 out of 10 in our fundamental rating. ARLP was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. ARLP gets an excellent profitability rating and is at the same time showing great financial health properties. ARLP has a bad growth rate and is valued cheaply. Finally ARLP also has an excellent dividend rating. These ratings could make ARLP a good candidate for value and dividend investing.
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
The Return On Assets of ARLP (21.94%) is better than 87.79% of its industry peers.
Looking at the Return On Equity, with a value of 33.35%, ARLP is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
ARLP's Return On Invested Capital of 20.74% is amongst the best of the industry. ARLP outperforms 88.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARLP is significantly below the industry average of 45.95%.
The 3 year average ROIC (16.77%) for ARLP is below the current ROIC(20.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.94% | ||
| ROE | 33.35% | ||
| ROIC | 20.74% |
ROA(3y)16.81%
ROA(5y)11.98%
ROE(3y)26.94%
ROE(5y)20.1%
ROIC(3y)16.77%
ROIC(5y)12.48%
1.3 Margins
ARLP has a better Profit Margin (23.84%) than 61.97% of its industry peers.
ARLP's Profit Margin has improved in the last couple of years.
ARLP has a Operating Margin (26.19%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ARLP has grown nicely.
With an excellent Gross Margin value of 93.05%, ARLP belongs to the best of the industry, outperforming 97.65% of the companies in the same industry.
ARLP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.19% | ||
| PM (TTM) | 23.84% | ||
| GM | 93.05% |
OM growth 3Y67.45%
OM growth 5Y9.53%
PM growth 3YN/A
PM growth 5Y5.52%
GM growth 3Y-1.85%
GM growth 5Y-0.27%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARLP is creating value.
The number of shares outstanding for ARLP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ARLP has less shares outstanding
ARLP has a better debt/assets ratio than last year.
2.2 Solvency
ARLP has a debt to FCF ratio of 0.79. This is a very positive value and a sign of high solvency as it would only need 0.79 years to pay back of all of its debts.
The Debt to FCF ratio of ARLP (0.79) is better than 85.45% of its industry peers.
ARLP has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
ARLP has a better Debt to Equity ratio (0.17) than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.79 | ||
| Altman-Z | N/A |
ROIC/WACC2.28
WACC9.1%
2.3 Liquidity
A Current Ratio of 2.27 indicates that ARLP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.27, ARLP is doing good in the industry, outperforming 77.93% of the companies in the same industry.
ARLP has a Quick Ratio of 1.71. 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 Quick ratio (1.71) than 74.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.25% over the past year.
ARLP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.25% yearly.
The Revenue has been growing slightly by 6.21% in the past year.
Measured over the past years, ARLP shows a small growth in Revenue. The Revenue has been growing by 5.09% on average per year.
EPS 1Y (TTM)10.25%
EPS 3Y184.58%
EPS 5Y15.25%
EPS growth Q2Q-46.01%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y24.56%
Revenue growth 5Y5.09%
Revenue growth Q2Q-10.74%
3.2 Future
Based on estimates for the next years, ARLP will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.69% on average per year.
ARLP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.67% yearly.
EPS Next Y-18.39%
EPS Next 2Y-9.17%
EPS Next 3Y-10.69%
EPS Next 5YN/A
Revenue Next Year-2.67%
Revenue Next 2Y-1.12%
Revenue Next 3Y-2.67%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 4.44, which indicates a rather cheap valuation of ARLP.
Based on the Price/Earnings ratio, ARLP is valued cheaply inside the industry as 89.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.20, ARLP is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.44, the valuation of ARLP can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARLP is valued cheaply inside the industry as 90.61% of the companies are valued more expensively.
ARLP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.44 | ||
| Fwd PE | 5.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARLP indicates a rather cheap valuation: ARLP is cheaper than 88.26% of the companies listed in the same industry.
78.40% of the companies in the same industry are more expensive than ARLP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
ARLP has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ARLP's earnings are expected to decrease with -10.69% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-9.17%
EPS Next 3Y-10.69%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 13.30%, which is a nice return.
ARLP's Dividend Yield is rather good when compared to the industry average which is at 5.79. ARLP pays more dividend than 95.77% of the companies in the same industry.
ARLP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.3% |
5.2 History
The dividend of ARLP is nicely growing with an annual growth rate of 6.10%!
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)6.1%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
59.58% of the earnings are spent on dividend by ARLP. This is a bit on the high side, but may be sustainable.
ARLP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP59.58%
EPS Next 2Y-9.17%
EPS Next 3Y-10.69%
ALLIANCE RESOURCE PARTNERS
NASDAQ:ARLP (4/26/2024, 1:48:40 PM)
21.475
-0.02 (-0.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.3% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.44 | ||
| Fwd PE | 5.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.94% | ||
| ROE | 33.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.19% | ||
| PM (TTM) | 23.84% | ||
| GM | 93.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.25%
EPS 3Y184.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-18.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.21%
Revenue growth 3Y24.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y