ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
We assign a fundamental rating of 6 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.
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 94.29% of its industry peers.
With an excellent Return On Equity value of 27.82%, ARLP belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Invested Capital of ARLP (17.24%) is better than 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARLP is significantly below the industry average of 23.80%.
| 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 better Profit Margin (16.45%) than 66.19% 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 50.95% of the companies in the same industry.
ARLP's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 93.93%, ARLP belongs to the best of the industry, outperforming 99.05% of the companies in the same industry.
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
ARLP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ARLP has been increased compared to 1 year ago.
ARLP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARLP has a worse debt to assets ratio.
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.
ARLP has a better Debt to FCF ratio (1.35) than 86.67% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ARLP is not too dependend on debt financing.
ARLP's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. ARLP outperforms 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.79
WACC9.62%
2.3 Liquidity
A Current Ratio of 2.20 indicates that ARLP has no problem at all paying its short term obligations.
The Current ratio of ARLP (2.20) is better than 80.48% 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 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The earnings per share for ARLP have decreased strongly by -51.30% in the last year.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.97%.
ARLP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
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
ARLP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.15% yearly.
ARLP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.80% yearly.
EPS Next Y-9.42%
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
EPS Next 5Y4.15%
Revenue Next Year-7.15%
Revenue Next 2Y-3.81%
Revenue Next 3Y-1.73%
Revenue Next 5Y0.8%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 12.03 indicates a correct valuation of ARLP.
Compared to the rest of the industry, the Price/Earnings ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 63.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARLP to the average of the S&P500 Index (27.19), we can say ARLP is valued rather cheaply.
ARLP is valuated reasonably with a Price/Forward Earnings ratio of 9.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 67.62% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ARLP to the average of the S&P500 Index (35.33), we can say ARLP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARLP is valued a bit cheaper than 75.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARLP is valued a bit cheaper than the industry average as 75.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 4.4 |
4.3 Compensation for Growth
The decent profitability rating of ARLP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.43%, ARLP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.41, ARLP pays a better dividend. On top of this ARLP pays more dividend than 89.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.43% |
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
71.28% of the earnings are spent on dividend by ARLP. This is not a sustainable payout ratio.
ARLP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP71.28%
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
NASDAQ:ARLP (7/15/2025, 8:00:00 PM)
26.94
-0.29 (-1.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.8%
Inst Owner Change0%
Ins Owners29.44%
Ins Owner Change0.07%
Market Cap3.46B
Analysts84.44
Price Target30.43 (12.95%)
Short Float %1.74%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.43% |
Yearly Dividend2.85
Dividend Growth(5Y)5.46%
DP71.28%
Div Incr Years0
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)0%
PT rev (3m)1.13%
EPS NQ rev (1m)-14.83%
EPS NQ rev (3m)-14.83%
EPS NY rev (1m)-2.01%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)-3.88%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.12 | ||
| P/FCF | 9.9 | ||
| P/OCF | 4.31 | ||
| P/B | 1.89 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 4.4 |
EPS(TTM)2.24
EY8.31%
EPS(NY)2.71
Fwd EY10.07%
FCF(TTM)2.72
FCFY10.11%
OCF(TTM)6.25
OCFY23.21%
SpS24.14
BVpS14.27
TBVpS14.27
PEG (NY)N/A
PEG (5Y)1.3
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
WACC9.62%
ROIC/WACC1.79
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-9.42%
EPS Next 2Y-2.94%
EPS Next 3Y1.76%
EPS Next 5Y4.15%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-17.07%
Revenue Next Year-7.15%
Revenue Next 2Y-3.81%
Revenue Next 3Y-1.73%
Revenue Next 5Y0.8%
EBIT growth 1Y-12.9%
EBIT growth 3Y24.72%
EBIT growth 5Y9.14%
EBIT Next Year42.72%
EBIT Next 3Y15.21%
EBIT Next 5Y11.31%
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%