ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
Overall ARLP gets a fundamental rating of 6 out of 10. We evaluated ARLP against 210 industry peers in the Oil, Gas & Consumable Fuels industry. ARLP scores excellent on profitability, but there are some minor concerns on its financial health. ARLP has a correct valuation and a medium growth rate. Finally ARLP also has an excellent dividend rating. These ratings would make ARLP suitable for dividend investing!
1. Profitability
1.1 Basic Checks
ARLP had positive earnings in the past year.
In the past year ARLP had a positive cash flow from operations.
ARLP had positive earnings in 4 of the past 5 years.
ARLP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARLP has a better Return On Assets (17.49%) than 91.43% of its industry peers.
ARLP's Return On Equity of 27.82% is amongst the best of the industry. ARLP outperforms 87.62% of its industry peers.
ARLP has a better Return On Invested Capital (17.24%) than 90.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARLP is significantly below the industry average of 27.47%.
| 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
With a decent Profit Margin value of 16.45%, ARLP is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Profit Margin of ARLP has declined.
ARLP has a Operating Margin (18.89%) which is in line with its industry peers.
ARLP's Operating Margin has improved in the last couple of years.
ARLP's Gross Margin of 93.93% 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 | 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.
ARLP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ARLP has more shares outstanding
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 85.71% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that ARLP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, ARLP is in the better half of the industry, outperforming 65.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.95
WACC8.83%
2.3 Liquidity
ARLP has a Current Ratio of 2.20. This indicates that ARLP is financially healthy and has no problem in meeting its short term obligations.
ARLP's Current ratio of 2.20 is fine compared to the rest of the industry. ARLP outperforms 77.14% of its industry peers.
A Quick Ratio of 1.68 indicates that ARLP should not have too much problems paying its short term obligations.
The Quick ratio of ARLP (1.68) is better than 72.86% 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 -40.50% 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.
Looking at the last year, ARLP shows a very strong growth in Revenue. The Revenue has grown by 20.80%.
The Revenue has been growing slightly by 4.53% on average over the past years.
EPS 1Y (TTM)-40.5%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)20.8%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-5.65%
3.2 Future
The Earnings Per Share is expected to grow by 6.89% on average over the next years.
Based on estimates for the next years, ARLP will show a small growth in Revenue. The Revenue will grow by 2.40% on average per year.
EPS Next Y-0.24%
EPS Next 2Y7.29%
EPS Next 3Y6.65%
EPS Next 5Y6.89%
Revenue Next Year-6.64%
Revenue Next 2Y-1.54%
Revenue Next 3Y-0.57%
Revenue Next 5Y2.4%
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 8.62, the valuation of ARLP can be described as reasonable.
73.81% 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 29.35.
ARLP is valuated reasonably with a Price/Forward Earnings ratio of 8.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 69.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, ARLP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARLP is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 4.05 |
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)0.93
EPS Next 2Y7.29%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.28%, ARLP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.06, ARLP pays a better dividend. On top of this ARLP pays more dividend than 91.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, ARLP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.28% |
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 Years2
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 more than its dividend. This makes the dividend growth sustainable.
DP71.28%
EPS Next 2Y7.29%
EPS Next 3Y6.65%
24.83
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners19.18%
Inst Owner Change3.52%
Ins Owners29.78%
Ins Owner Change0.07%
Market Cap3.19B
Analysts82.22
Price Target30.09 (21.18%)
Short Float %3.67%
Short Ratio8.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.28% |
Yearly Dividend2.85
Dividend Growth(5Y)5.46%
DP71.28%
Div Incr Years2
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)1.72%
EPS NQ rev (1m)-32.18%
EPS NQ rev (3m)-29.76%
EPS NY rev (1m)-11.63%
EPS NY rev (3m)-15.54%
Revenue NQ rev (1m)-5.45%
Revenue NQ rev (3m)-8.14%
Revenue NY rev (1m)-4.15%
Revenue NY rev (3m)-5.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 8.64 | ||
| P/S | 1.03 | ||
| P/FCF | 9.12 | ||
| P/OCF | 3.97 | ||
| P/B | 1.74 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 4.05 |
EPS(TTM)2.88
EY11.6%
EPS(NY)2.87
Fwd EY11.57%
FCF(TTM)2.72
FCFY10.96%
OCF(TTM)6.25
OCFY25.19%
SpS24.14
BVpS14.27
TBVpS14.27
PEG (NY)N/A
PEG (5Y)0.93
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
WACC8.83%
ROIC/WACC1.95
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)-40.5%
EPS 3Y26.29%
EPS 5Y9.26%
EPS Q2Q%-72.73%
EPS Next Y-0.24%
EPS Next 2Y7.29%
EPS Next 3Y6.65%
EPS Next 5Y6.89%
Revenue 1Y (TTM)20.8%
Revenue growth 3Y15.97%
Revenue growth 5Y4.53%
Sales Q2Q%-5.65%
Revenue Next Year-6.64%
Revenue Next 2Y-1.54%
Revenue Next 3Y-0.57%
Revenue Next 5Y2.4%
EBIT growth 1Y-12.9%
EBIT growth 3Y24.72%
EBIT growth 5Y9.14%
EBIT Next Year54.06%
EBIT Next 3Y17.18%
EBIT Next 5Y14.69%
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%