NasdaqGS:ARLP

Stock Analysis Report

Alliance Resource Partners

Executive Summary

Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States.

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Share Price & News

How has Alliance Resource Partners's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARLP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

ARLP

-1.4%

US Oil and Gas

0.7%

US Market


1 Year Return

-37.0%

ARLP

-13.8%

US Oil and Gas

12.9%

US Market

Return vs Industry: ARLP underperformed the US Oil and Gas industry which returned -13.8% over the past year.

Return vs Market: ARLP underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

ARLPIndustryMarket
7 Day5.2%-1.4%0.7%
30 Day-9.0%3.5%4.4%
90 Day-17.6%4.3%7.0%
1 Year-28.2%-37.0%-10.7%-13.8%15.4%12.9%
3 Year-27.5%-47.8%-5.6%-14.3%49.1%39.5%
5 Year-55.9%-74.4%-24.0%-34.9%62.7%44.7%

Price Volatility Vs. Market

How volatile is Alliance Resource Partners's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alliance Resource Partners undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARLP ($12.32) is trading below our estimate of fair value ($26.19)

Significantly Below Fair Value: ARLP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARLP is good value based on its PE Ratio (3.8x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: ARLP is good value based on its PE Ratio (3.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ARLP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ARLP is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (0.8x).

Future Growth

How is Alliance Resource Partners forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-57.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARLP's earnings are forecast to decline over the next 3 years (-57.2% per year).

Earnings vs Market: ARLP's earnings are forecast to decline over the next 3 years (-57.2% per year).

High Growth Earnings: ARLP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ARLP's revenue is expected to decline over the next 3 years (-5.2% per year).

High Growth Revenue: ARLP's revenue is forecast to decline over the next 3 years (-5.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ARLP's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Alliance Resource Partners performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARLP has large one-off items impacting its financial results.

Growing Profit Margin: ARLP's current net profit margins (20.5%) are higher than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: ARLP's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: ARLP's earnings growth over the past year (9.5%) is below its 5-year average (11.7% per year).

Earnings vs Industry: ARLP earnings growth over the past year (9.5%) exceeded the Oil and Gas industry -12.3%.


Return on Equity

High ROE: ARLP's Return on Equity (32%) is considered high.


Return on Assets


Return on Capital Employed

Financial Health

How is Alliance Resource Partners's financial position?


Financial Position Analysis

Short Term Liabilities: ARLP's short term assets ($341.4M) exceeds its short term liabilities ($309.7M)

Long Term Liabilities: ARLP's short term assets (341.4M) do not cover its long term liabilities (966.1M)


Debt to Equity History and Analysis

Debt Level: ARLP's debt to equity ratio (52.3%) is considered high

Reducing Debt: ARLP's debt to equity ratio has reduced from 76.2% to 52.3% over the past 5 years.

Debt Coverage: ARLP's debt is well covered by operating cash flow (74.1%).

Interest Coverage: ARLP's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: ARLP has a high level of physical assets or inventory.

Debt Coverage by Assets: ARLP's debt is not covered by short term assets (assets are 0.5x debt).

Dividend

What is Alliance Resource Partners's current dividend yield, its reliability and sustainability?

17.53%

Current Dividend Yield


Dividend Yield vs Market

company17.5%marketbottom25%1.4%markettop25%3.6%industryaverage4.1%forecastin3Years15.0%

Current dividend yield vs market & industry

Notable Dividend: ARLP's dividend (17.53%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ARLP's dividend (17.53%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: ARLP's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARLP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.1%), ARLP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARLP's dividends in 3 years are not forecast to be well covered by earnings (172.2% payout ratio).

Management

What is the CEO of Alliance Resource Partners's salary, the management and board of directors tenure and is there insider trading?

11.7yrs

Average management tenure


CEO

Joe Craft (68yo)

20.3yrs

Tenure

US$468,258

Compensation

Mr. Joseph W. Craft, III, also known as Joe has the been the President and Chief Executive Officer of Alliance Resource Management GP LLC, Managing General Partner of Alliance Resource Partners LP since Au ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD468.26K) is below average for companies of similar size in the US market ($USD3.92M).

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

11.7yrs

Average Tenure

61.5yo

Average Age

Experienced Management: ARLP's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

69.5yo

Average Age

Experienced Board: ARLP's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: ARLP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$54,76601 Nov 19
Robert Fouch
EntityIndividual
Role
Chief Accounting Officer
VP, Controller & Chief Accounting Officer of Alliance Resource Management GP
Shares5,000
Max PriceUS$10.95
BuyUS$86,33514 Aug 19
Wilson Torrence
EntityIndividual
Role
Member of the Board of Directors
Director of Alliance Resource Management GP
Shares5,600
Max PriceUS$15.55
SellUS$205,53131 Jul 19
Robert Druten
EntityIndividual
Role
Member of the Board of Directors
Director of Alliance Holdings GP LP
Shares12,000
Max PriceUS$17.13

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joe Craft (68yo)

    Chairman

    • Tenure: 20.3yrs
    • Compensation: US$468.26k
  • Charlie Wesley (64yo)

    Executive VP & Director of Alliance Resource Management GP

    • Tenure: 10.8yrs
    • Compensation: US$25.00k
  • Brian Cantrell (59yo)

    Senior VP & CFO of Alliance Resource Management GP

    • Tenure: 16.1yrs
    • Compensation: US$1.26m
  • Robert Sachse (70yo)

    Executive Vice President of Alliance Resource Management GP

    • Tenure: 19.3yrs
    • Compensation: US$1.22m
  • R. Davis (61yo)

    Senior VP

    • Tenure: 12.8yrs
    • Compensation: US$1.59m
  • Tom Wynne (62yo)

    Senior VP & COO of Alliance Resource Management GP

    • Tenure: 10.7yrs
    • Compensation: US$1.71m
  • Timothy Whelan (56yo)

    Senior Vice President - Sales & Marketing of Alliance Coal

    • Tenure: 0yrs
    • Compensation: US$1.28m
  • Cary Marshall

    VP of Corporate Finance & Treasurer

    • Tenure: 0yrs
  • Bob Fouch (61yo)

    VP, Controller & Chief Accounting Officer of Alliance Resource Management GP

    • Tenure: 0.8yrs
  • Heath Lovell

    Vice President of Public Affairs - Alliance Resource Management GP LLC

    • Tenure: 2.4yrs

Board Members

  • Joe Craft (68yo)

    Chairman

    • Tenure: 20.3yrs
    • Compensation: US$468.26k
  • Charlie Wesley (64yo)

    Executive VP & Director of Alliance Resource Management GP

    • Tenure: 10.8yrs
    • Compensation: US$25.00k
  • Bob Druten (71yo)

    Director of Alliance Holdings GP LP

    • Tenure: 0.8yrs
  • John Robinson (68yo)

    Director of Alliance Resource Management GP

    • Tenure: 19.9yrs
    • Compensation: US$190.00k
  • Nick Carter (73yo)

    Director of Alliance Resource Management GP

    • Tenure: 4.6yrs
    • Compensation: US$180.00k
  • Wilson Torrence (77yo)

    Director of Alliance Resource Management GP

    • Tenure: 12.8yrs
    • Compensation: US$178.85k

Company Information

Alliance Resource Partners, L.P.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alliance Resource Partners, L.P.
  • Ticker: ARLP
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$1.579b
  • Shares outstanding: 128.13m
  • Website: https://www.arlp.com

Number of Employees


Location

  • Alliance Resource Partners, L.P.
  • 1717 South Boulder Avenue
  • Suite 400
  • Tulsa
  • Oklahoma
  • 74119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARLPNasdaqGS (Nasdaq Global Select)YesCommon UnitsUSUSDAug 1999
AR6DB (Deutsche Boerse AG)YesCommon UnitsDEEURAug 1999

Biography

Alliance Resource Partners, L.P. produces and markets coal primarily to utilities and industrial users in the United States. The company operates through two segments, Illinois Basin and Appalachia. It pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:31
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.