NasdaqGS:ARLP

Stock Analysis Report

Alliance Resource Partners

Executive Summary

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

Rewards


Snowflake Analysis


Similar Companies

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

5.0%

ARLP

17.5%

US Oil and Gas

12.5%

US Market


1 Year Return

-82.2%

ARLP

-57.2%

US Oil and Gas

-12.7%

US Market

Return vs Industry: ARLP underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: ARLP underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

ARLPIndustryMarket
7 Day5.0%17.5%12.5%
30 Day-46.6%-36.4%-14.7%
90 Day-66.7%-52.2%-21.5%
1 Year-79.4%-82.2%-55.5%-57.2%-10.9%-12.7%
3 Year-77.4%-84.1%-52.3%-56.9%12.6%5.4%
5 Year-81.0%-89.3%-55.6%-62.5%31.9%17.5%

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 ($3.6) is trading below our estimate of fair value ($24.24)

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 (1.2x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: ARLP is good value based on its PE Ratio (1.2x) compared to the US market (13x).


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 good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.5x).

Future Growth

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

-37.3%

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 (-37.3% per year).

Earnings vs Market: ARLP's earnings are forecast to decline over the next 3 years (-37.3% 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 (-1.7% per year).

High Growth Revenue: ARLP's revenue is forecast to decline over the next 3 years (-1.7% 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?

13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARLP has a large one-off gain of $161.9M impacting its December 31 2019 financial results.

Growing Profit Margin: ARLP's current net profit margins (20%) are higher than last year (17.9%).


Past Earnings Growth Analysis

Earnings Trend: ARLP's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: ARLP's earnings growth over the past year (9.7%) is below its 5-year average (13.7% per year).

Earnings vs Industry: ARLP earnings growth over the past year (9.7%) exceeded the Oil and Gas industry -11.4%.


Return on Equity

High ROE: ARLP's Return on Equity (32.2%) is considered high.

Financial Health

How is Alliance Resource Partners's financial position?


Financial Position Analysis

Short Term Liabilities: ARLP's short term assets ($319.6M) exceed its short term liabilities ($195.6M).

Long Term Liabilities: ARLP's short term assets ($319.6M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: ARLP's debt to equity ratio (57%) is considered high.

Reducing Debt: ARLP's debt to equity ratio has reduced from 80.9% to 57% over the past 5 years.

Debt Coverage: ARLP's debt is well covered by operating cash flow (71.4%).

Interest Coverage: ARLP's interest payments on its debt are well covered by EBIT (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 0.4x debt).

Dividend

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

44.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARLP's dividend (44.44%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: ARLP's dividend (44.44%) is in the top 25% of dividend payers in the US market (5.49%)


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 (65.7%), 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 (121.7% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

11.0yrs

Average management tenure


CEO

Joe Craft (68yo)

20.58s

Tenure

US$12,963

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 at Alliance Resource Partners L.P. since  ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD12.96K) is below average for companies of similar size in the US market ($USD2.17M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Craft
Chairman20.58yrsUS$12.96k15.31% $70.1m
Brian Cantrell
Senior VP & CFO of Alliance Resource Management GP16.42yrsUS$1.11m0.15% $681.6k
Thomas Wynne
Senior VP & COO of Alliance Resource Management GP11yrsUS$1.53m0.89% $4.1m
R. Davis
Senior VP13yrsUS$1.38m0.11% $504.5k
Kirk Tholen
Senior VP & Chief Strategic Officer of Alliance Resource Management GP0.25yrUS$1.67mno data
Robert Fouch
VP, Controller & Chief Accounting Officer of Alliance Resource Management GP1yrno data0.046% $212.7k
Cary Marshall
VP of Corporate Finance & Treasurerno datano datano data
Heath Lovell
Vice President of Public Affairs - Alliance Resource Management GP LLC2.75yrsno datano data
Charles Wesley
Executive VP & Director of Alliance Resource Management GP11.17yrsUS$25.00k1.88% $8.6m
Robert Sachse
Executive Vice President of Alliance Resource Management GP19.58yrsUS$1.22m0.16% $733.5k

11.0yrs

Average Tenure

61.5yo

Average Age

Experienced Management: ARLP's management team is seasoned and experienced (11 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Craft
Chairman20.58yrsUS$12.96k15.31% $70.1m
Charles Wesley
Executive VP & Director of Alliance Resource Management GP11.17yrsUS$25.00k1.88% $8.6m
Robert Druten
Independent Director of Alliance Resource Management GP1.17yrsUS$187.58k0.020% $92.3k
John Robinson
Independent Director of Alliance Resource Management GP20.25yrsUS$176.00k0.015% $66.4k
Nick Carter
Independent Director of Alliance Resource Management GP4.92yrsUS$166.00k0.016% $72.0k
Wilson Torrence
Independent Director of Alliance Resource Management GP13.17yrsUS$213.03k0.032% $145.4k

8.0yrs

Average Tenure

69.5yo

Average Age

Experienced Board: ARLP's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$457.903m
  • Shares outstanding: 127.20m
  • 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., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through three segments: Illinois Basin, Appalachia, and Minerals. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. It also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns interests in various oil and gas mineral interests located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2019, it had approximately 1.69 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of the company. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:40
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.