NASDAQ:ARLP is an undervalued gem with solid fundamentals.

Last update: Feb 6, 2024

Uncover the hidden value in ALLIANCE RESOURCE PARTNERS (NASDAQ:ARLP) as our stock screening tool recommends it as an undervalued choice. NASDAQ:ARLP maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Examination for NASDAQ:ARLP

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:ARLP boasts a 9 out of 10:

Based on the Price/Earnings ratio of 3.79, the valuation of ARLP can be described as very cheap.
ARLP's Price/Earnings ratio is rather cheap when compared to the industry. ARLP is cheaper than 86.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.62, ARLP is valued rather cheaply.
The Price/Forward Earnings ratio is 4.29, which indicates a rather cheap valuation of ARLP.
ARLP's Price/Forward Earnings ratio is rather cheap when compared to the industry. ARLP is cheaper than 92.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.25. ARLP is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, ARLP is valued cheaply inside the industry as 85.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARLP is valued cheaper than 83.26% of the companies in the same industry.
ARLP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of ARLP may justify a higher PE ratio.

Profitability Analysis for NASDAQ:ARLP

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:ARLP, the assigned 7 is noteworthy for profitability:

ARLP has a Return On Assets of 25.12%. This is amongst the best in the industry. ARLP outperforms 86.05% of its industry peers.
With a decent Return On Equity value of 38.66%, ARLP is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 23.86%, ARLP belongs to the top of the industry, outperforming 85.58% of the companies in the same industry.
The 3 year average ROIC (10.85%) for ARLP is below the current ROIC(23.86%), indicating increased profibility in the last year.
The Profit Margin of ARLP (26.75%) is better than 62.79% of its industry peers.
In the last couple of years the Profit Margin of ARLP has grown nicely.
ARLP's Operating Margin has improved in the last couple of years.
ARLP has a Gross Margin of 95.01%. This is amongst the best in the industry. ARLP outperforms 98.14% of its industry peers.

Assessing Health Metrics for NASDAQ:ARLP

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ARLP has earned a 6 out of 10:

ARLP has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
ARLP has a Debt to FCF ratio of 0.60. This is amongst the best in the industry. ARLP outperforms 87.44% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that ARLP is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, ARLP is doing good in the industry, outperforming 71.63% of the companies in the same industry.
A Current Ratio of 2.14 indicates that ARLP has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.14, ARLP is doing good in the industry, outperforming 76.28% of the companies in the same industry.
ARLP has a better Quick ratio (1.65) than 70.70% of its industry peers.

What does the Growth looks like for NASDAQ:ARLP

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:ARLP has achieved a 4 out of 10:

The Earnings Per Share has grown by an impressive 76.34% over the past year.
The Revenue has grown by 20.67% in the past year. This is a very strong growth!

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Check the latest full fundamental report of ARLP for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.