ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
USA - NASDAQ:ARLP - US01877R1086
24.4 USD
-0.6 (-2.4%)
24.4 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ARLP. ARLP was compared to 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 it does not seem to be growing.
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.
ARLP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.13%, ARLP belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
ARLP's Return On Equity of 13.01% is fine compared to the rest of the industry. ARLP outperforms 70.95% of its industry peers.
ARLP's Return On Invested Capital of 9.91% is amongst the best of the industry. ARLP outperforms 80.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARLP 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's Profit Margin of 10.18% is in line compared to the rest of the industry. ARLP outperforms 55.24% of its industry peers.
In the last couple of years the Profit Margin of ARLP has declined.
The Operating Margin of ARLP (14.42%) is comparable to the rest of the industry.
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.
Compared to 1 year ago, ARLP has more shares outstanding
Compared to 5 years ago, ARLP has more shares outstanding
ARLP has a worse debt/assets ratio than last year.
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.
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.
The Debt to Equity ratio of ARLP (0.24) is better 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
A Current Ratio of 1.96 indicates that ARLP should not have too much problems paying its short term obligations.
ARLP's Current ratio of 1.96 is fine compared to the rest of the industry. ARLP outperforms 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%.
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.
The Revenue for ARLP has decreased by -28.27% in the past year. This is quite bad
The Revenue has been growing slightly by 4.53% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.29% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.20, the valuation of ARLP can be described as correct.
ARLP's Price/Earnings ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 65.24% of the companies in the same industry.
ARLP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.06.
The Price/Forward Earnings ratio is 8.98, which indicates a very decent valuation of ARLP.
80.95% of the companies in the same industry are more expensive than ARLP, based on the Price/Forward Earnings ratio.
ARLP is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| 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 70.95% 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 74.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 5.75 |
4.3 Compensation for Growth
The decent profitability rating of ARLP 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
ARLP has a Yearly Dividend Yield of 9.60%, which is a nice return.
Compared to an average industry Dividend Yield of 6.14, ARLP pays a better dividend. On top of this ARLP pays more dividend than 88.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.6% |
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
155.69% of the earnings are spent on dividend by ARLP. 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-4.53%
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 | 9.6% |
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)-0.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)5.75%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-1.66%
Revenue NY rev (3m)-4.57%
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 | 5.75 |
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.