ALLIANCE RESOURCE PARTNERS (ARLP) Stock Fundamental Analysis
NASDAQ:ARLP - Nasdaq - US01877R1086 - Currency: USD
ARLP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 212 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 is valued quite cheap, but it does not seem to be growing. Finally ARLP also has an excellent dividend rating. With these ratings, ARLP could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year ARLP was profitable.
ARLP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ARLP reported negative net income in multiple years.
ARLP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ARLP has a Return On Assets of 19.97%. This is amongst the best in the industry. ARLP outperforms 91.26% of its industry peers.
ARLP has a Return On Equity of 31.82%. This is amongst the best in the industry. ARLP outperforms 88.83% of its industry peers.
With an excellent Return On Invested Capital value of 18.69%, ARLP belongs to the best of the industry, outperforming 90.29% 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 28.73%.
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 66.02% of its industry peers.
ARLP's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 20.88%, ARLP perfoms like the industry average, outperforming 49.03% of the companies in the same industry.
ARLP's Operating Margin has improved in the last couple of years.
The Gross Margin of ARLP (93.09%) is better than 97.57% 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.
ARLP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.59, ARLP belongs to the top of the industry, outperforming 81.07% of the companies in the same industry.
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 65.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | N/A |
ROIC/WACC2.07
WACC9.04%
2.3 Liquidity
A Current Ratio of 2.36 indicates that ARLP has no problem at all paying its short term obligations.
ARLP has a Current ratio of 2.36. This is in the better half of the industry: ARLP outperforms 76.70% 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's Quick ratio of 1.69 is fine compared to the rest of the industry. ARLP outperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
ARLP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.91%.
ARLP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.10% yearly.
EPS 1Y (TTM)-40.91%
EPS 3Y25.99%
EPS 5Y9.1%
EPS Q2Q%-75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.65%
3.2 Future
The Earnings Per Share is expected to grow by 7.04% 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 Y13.68%
EPS Next 2Y6.24%
EPS Next 3Y9.29%
EPS Next 5Y7.04%
Revenue Next Year-0.35%
Revenue Next 2Y-1.05%
Revenue Next 3Y2.38%
Revenue Next 5Y2.4%
3.3 Evolution
The EPS 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
With a Price/Earnings ratio of 9.78, the valuation of ARLP can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ARLP indicates a somewhat cheap valuation: ARLP is cheaper than 67.96% of the companies listed in the same industry.
ARLP is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.61, which indicates a very decent valuation of ARLP.
Based on the Price/Forward Earnings ratio, ARLP is valued a bit cheaper than the industry average as 72.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 92.74. ARLP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARLP is valued a bit cheaper than 73.30% of the companies in the same industry.
62.14% 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 | 11.94 | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
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.
PEG (NY)0.72
PEG (5Y)1.07
EPS Next 2Y6.24%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
ARLP has a Yearly Dividend Yield of 9.76%, which is a nice return.
ARLP's Dividend Yield is rather good when compared to the industry average which is at 6.57. ARLP pays more dividend than 86.89% of the companies in the same industry.
ARLP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
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 Years4
5.3 Sustainability
60.02% of the earnings are spent on dividend by ARLP. This is not a sustainable payout ratio.
The dividend of ARLP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP60.02%
EPS Next 2Y6.24%
EPS Next 3Y9.29%
ALLIANCE RESOURCE PARTNERS
NASDAQ:ARLP (2/4/2025, 8:27:14 PM)
After market: 28.1 +0.12 (+0.43%)27.98
+0.38 (+1.38%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.39%
Inst Owner Change-0.67%
Ins Owners29.73%
Ins Owner Change-0.05%
Market Cap3.58B
Analysts82.22
Price Target30.09 (7.54%)
Short Float %2.96%
Short Ratio7.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.76% |
Yearly Dividend2.87
Dividend Growth(5Y)6.1%
DP60.02%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.79%
Min EPS beat(2)-24.76%
Max EPS beat(2)-18.83%
EPS beat(4)1
Avg EPS beat(4)-10.13%
Min EPS beat(4)-24.76%
Max EPS beat(4)27.21%
EPS beat(8)4
Avg EPS beat(8)-2.91%
EPS beat(12)5
Avg EPS beat(12)-9.26%
EPS beat(16)8
Avg EPS beat(16)11.95%
Revenue beat(2)0
Avg Revenue beat(2)-7.13%
Min Revenue beat(2)-8%
Max Revenue beat(2)-6.26%
Revenue beat(4)1
Avg Revenue beat(4)-4.65%
Min Revenue beat(4)-8%
Max Revenue beat(4)3.04%
Revenue beat(8)1
Avg Revenue beat(8)-4.23%
Revenue beat(12)3
Avg Revenue beat(12)-3.44%
Revenue beat(16)3
Avg Revenue beat(16)-3.83%
PT rev (1m)0%
PT rev (3m)9.26%
EPS NQ rev (1m)-9.46%
EPS NQ rev (3m)-32.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.17%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 8.61 | ||
| P/S | 1.14 | ||
| P/FCF | 11.94 | ||
| P/OCF | 4.91 | ||
| P/B | 1.88 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 4.14 |
EPS(TTM)2.86
EY10.22%
EPS(NY)3.25
Fwd EY11.62%
FCF(TTM)2.34
FCFY8.38%
OCF(TTM)5.7
OCFY20.37%
SpS24.49
BVpS14.86
TBVpS14.86
PEG (NY)0.72
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.97% | ||
| ROE | 31.82% | ||
| ROCE | 23.66% | ||
| ROIC | 18.69% | ||
| ROICexc | 20.11% | ||
| ROICexgc | 20.11% | ||
| OM | 20.88% | ||
| PM (TTM) | 19.31% | ||
| GM | 93.09% | ||
| FCFM | 9.57% |
ROA(3y)16.81%
ROA(5y)11.98%
ROE(3y)26.94%
ROE(5y)20.1%
ROIC(3y)16.77%
ROIC(5y)12.48%
ROICexc(3y)18.07%
ROICexc(5y)13.3%
ROICexgc(3y)18.08%
ROICexgc(5y)13.44%
ROCE(3y)21.23%
ROCE(5y)15.79%
ROICexcg growth 3Y89.83%
ROICexcg growth 5Y6.22%
ROICexc growth 3Y90.18%
ROICexc growth 5Y8.01%
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%
F-Score5
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 160.4% | ||
| Cap/Sales | 13.71% | ||
| Interest Coverage | 16.79 | ||
| Cash Conversion | 79.11% | ||
| Profit Quality | 49.56% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | N/A |
F-Score5
WACC9.04%
ROIC/WACC2.07
Cap/Depr(3y)100.75%
Cap/Depr(5y)87.97%
Cap/Sales(3y)11.82%
Cap/Sales(5y)12.03%
Profit Quality(3y)111.55%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.91%
EPS 3Y25.99%
EPS 5Y9.1%
EPS Q2Q%-75%
EPS Next Y13.68%
EPS Next 2Y6.24%
EPS Next 3Y9.29%
EPS Next 5Y7.04%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.65%
Revenue Next Year-0.35%
Revenue Next 2Y-1.05%
Revenue Next 3Y2.38%
Revenue Next 5Y2.4%
EBIT growth 1Y-14.64%
EBIT growth 3Y108.58%
EBIT growth 5Y15.1%
EBIT Next Year5.94%
EBIT Next 3Y1.55%
EBIT Next 5Y5.3%
FCF growth 1Y-27.65%
FCF growth 3Y15.18%
FCF growth 5Y-1.51%
OCF growth 1Y8.88%
OCF growth 3Y27.52%
OCF growth 5Y3.65%