ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
USA - NASDAQ:ARLP - US01877R1086
25.02 USD
+0.34 (+1.38%)
25.02 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. ARLP has an excellent profitability rating, but 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.
ARLP had a positive operating cash flow in the past year.
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
The Return On Assets of ARLP (8.13%) is better than 81.90% of its industry peers.
ARLP has a Return On Equity of 13.01%. This is in the better half of the industry: ARLP outperforms 71.43% of its industry peers.
ARLP's Return On Invested Capital of 9.91% is amongst the best of the industry. ARLP outperforms 80.95% 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 21.85%.
The last Return On Invested Capital (9.91%) for ARLP is well below the 3 year average (18.03%), which needs to be investigated, but indicates that ARLP had better years and this may not be a problem.
| 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 of 10.18%. This is comparable to the rest of the industry: ARLP outperforms 55.71% of its industry peers.
ARLP's Profit Margin has declined in the last couple of years.
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.
The Gross Margin of ARLP (95.44%) is better than 99.52% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARLP is creating value.
ARLP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARLP has more shares outstanding
ARLP has a worse debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 1.58, ARLP belongs to the top of the industry, outperforming 87.62% of the companies in the same industry.
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 66.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.13
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.96 indicates that ARLP should not have too much problems paying its short term obligations.
ARLP has a better Current ratio (1.96) than 76.19% 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.
Looking at the Quick ratio, with a value of 1.37, ARLP is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
| 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%.
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)-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
ARLP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.29% yearly.
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
A Price/Earnings ratio of 12.51 indicates a correct valuation of ARLP.
Based on the Price/Earnings ratio, ARLP is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
ARLP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 9.20, which indicates a very decent valuation of ARLP.
81.43% of the companies in the same industry are more expensive than ARLP, based on the Price/Forward Earnings ratio.
ARLP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 9.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARLP is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
75.71% 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 | 10.96 | ||
| EV/EBITDA | 5.81 |
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)1.35
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.
ARLP's Dividend Yield is rather good when compared to the industry average which is at 5.89. ARLP pays more dividend than 89.05% of the companies 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 | 9.6% |
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.
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%
25.02
+0.34 (+1.38%)
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 Cap3.21B
Revenue(TTM)2.25B
Net Income(TTM)233.20M
Analysts82.22
Price Target30.73 (22.82%)
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 | 12.51 | ||
| Fwd PE | 9.2 | ||
| P/S | 1.4 | ||
| P/FCF | 10.96 | ||
| P/OCF | 4.76 | ||
| P/B | 1.79 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)2
EY7.99%
EPS(NY)2.72
Fwd EY10.86%
FCF(TTM)2.28
FCFY9.12%
OCF(TTM)5.26
OCFY21.01%
SpS17.84
BVpS13.96
TBVpS13.96
PEG (NY)N/A
PEG (5Y)1.35
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
WACC8.77%
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.