ALLIANCE RESOURCE PARTNERS (ARLP)
US01877R1086
ARLP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 206 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 valuation in line with the averages, but on the other hand it scores bad on growth. ARLP also has an excellent dividend rating. With these ratings, ARLP could be worth investigating further for dividend investing!.
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.
Each year in the past 5 years ARLP had a positive operating cash flow.
1.2 Ratios
ARLP has a Return On Assets of 19.97%. This is amongst the best in the industry. ARLP outperforms 90.20% of its industry peers.
Looking at the Return On Equity, with a value of 31.82%, ARLP belongs to the top of the industry, outperforming 87.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.69%, ARLP belongs to the top of the industry, outperforming 90.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ARLP is significantly below the industry average of 29.25%.
The 3 year average ROIC (16.77%) for ARLP is below the current ROIC(18.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 31.82% | ||
| ROIC | 18.69% |
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
The Profit Margin of ARLP (19.31%) is better than 63.73% of its industry peers.
ARLP's Profit Margin has improved in the last couple of years.
ARLP has a Operating Margin (20.88%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ARLP has grown nicely.
ARLP has a better Gross Margin (93.09%) than 97.55% 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 | 20.88% | ||
| PM (TTM) | 19.31% | ||
| GM | 93.09% |
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.
The number of shares outstanding for ARLP has been reduced compared to 5 years ago.
The debt/assets ratio for ARLP has been reduced compared to a year ago.
2.2 Solvency
ARLP has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
The Debt to FCF ratio of ARLP (1.59) is better than 80.88% of its industry peers.
ARLP has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.24, ARLP is in the better half of the industry, outperforming 65.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | N/A |
ROIC/WACC2.1
WACC8.92%
2.3 Liquidity
ARLP has a Current Ratio of 2.36. This indicates that ARLP is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ARLP (2.36) is better than 77.94% of its industry peers.
ARLP has a Quick Ratio of 1.69. 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 (1.69) than 73.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for ARLP have decreased strongly by -37.03% in the last year.
Measured over the past years, ARLP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.25% on average per year.
The Revenue has grown by 18.69% in the past year. This is quite good.
The Revenue has been growing slightly by 5.09% on average over the past years.
EPS 1Y (TTM)-37.03%
EPS 3Y184.58%
EPS 5Y15.25%
EPS Q2Q%-44.07%
Revenue 1Y (TTM)18.69%
Revenue growth 3Y24.56%
Revenue growth 5Y5.09%
Sales Q2Q%-3.61%
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 -17.44% on average per year.
ARLP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.36% yearly.
EPS Next Y-28.87%
EPS Next 2Y-16.17%
EPS Next 3Y-17.44%
EPS Next 5YN/A
Revenue Next Year-4.26%
Revenue Next 2Y-2.87%
Revenue Next 3Y-4.36%
Revenue Next 5YN/A
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
ARLP is valuated reasonably with a Price/Earnings ratio of 8.09.
74.02% of the companies in the same industry are more expensive than ARLP, based on the Price/Earnings ratio.
ARLP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.29.
Based on the Price/Forward Earnings ratio of 8.38, the valuation of ARLP can be described as reasonable.
Based on the Price/Forward Earnings ratio, ARLP is valued a bit cheaper than 74.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.01. ARLP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
ARLP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARLP is cheaper than 73.53% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARLP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.16 | ||
| EV/EBITDA | 4.26 |
4.3 Compensation for Growth
ARLP has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ARLP's earnings are expected to decrease with -17.44% in the coming years.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-16.17%
EPS Next 3Y-17.44%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 10.04%, which is a nice return.
Compared to an average industry Dividend Yield of 6.59, ARLP pays a better dividend. On top of this ARLP pays more dividend than 86.76% of the companies listed in the same industry.
ARLP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.04% |
5.2 History
On average, the dividend of ARLP grows each year by 6.10%, which is quite nice.
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)6.1%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
ARLP pays out 60.02% of its income as dividend. This is not a sustainable payout ratio.
ARLP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP60.02%
EPS Next 2Y-16.17%
EPS Next 3Y-17.44%
ALLIANCE RESOURCE PARTNERS
NASDAQ:ARLP (11/22/2024, 8:23:51 PM)
After market: 27.5472 -0.94 (-3.31%)28.49
+0.61 (+2.19%)
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 Cap3.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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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 | 8.09 | ||
| Fwd PE | 8.38 | ||
| 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)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 31.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.88% | ||
| PM (TTM) | 19.31% | ||
| GM | 93.09% | ||
| 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.69 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-37.03%
EPS 3Y184.58%
EPS 5Y
EPS Q2Q%
EPS Next Y-28.87%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.69%
Revenue growth 3Y24.56%
Revenue growth 5Y
Sales 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