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ARLP

Alliance Resource PartnersNasdaqGS:ARLP Stock Report

Last Price

US$13.54

Market Cap

US$1.7b

7D

-7.7%

1Y

158.9%

Updated

21 Jan, 2022

Data

Company Financials +
ARLP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends4/6

ARLP Stock Overview

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

Alliance Resource Partners Competitors

Arch Resources

NYSE:ARCH

US$1.4b

Peabody Energy

NYSE:BTU

US$1.4b

CONSOL Energy

NYSE:CEIX

US$708.9m

Natural Resource Partners

NYSE:NRP

US$428.3m

Price History & Performance

Summary of all time highs, changes and price drops for Alliance Resource Partners
Historical stock prices
Current Share PriceUS$13.54
52 Week HighUS$15.03
52 Week LowUS$4.98
Beta1.81
1 Month Change12.83%
3 Month Change16.42%
1 Year Change158.89%
3 Year Change-27.94%
5 Year Change-44.39%
Change since IPO187.89%

Recent News & Updates

Nov 30

Alliance Resource Partners: Expect Higher Distributions In 2022 But Watch Out For 2023

After reinstating their distributions early in 2021, Alliance Resource Partners has now doubled them following a strong third quarter. This has been supported by their surging free cash flow and when looking ahead, they could afford to double their distributions once again providing these favorable operating conditions continue unabated. This has also sent their net debt plunging towards zero by approximately the middle of 2022. This makes it reasonable to expect higher distributions in 2022 given the lack of competing uses for their ample free cash flow. Despite being positive, it would be best to watch out for 2023 and beyond with management voicing concerns over coal power plants closures and thus I still believe that only a neutral rating is appropriate.

Sep 15

Alliance Resource Partners: A Higher Yield Is Inbound, Could Be 10%+

After only reinstating their distributions one quarter ago, Alliance Resource Partners is already talking of taking a relook with an eye towards further increases. Their free cash flow has surged during the second quarter of 2021, which provides a very solid base for higher distributions. Even without further operating condition improvements, they could still conservatively offer a 10%+ distribution yield on current cost. They have now reached their leverage target and when combined with their strong liquidity, they have no financial handbrake stopping higher distributions. Whilst this makes it appear that a higher yield is inbound, the long-term questions over their future coal-reliant earnings remain, and thus I only believe that a neutral rating is appropriate.

Shareholder Returns

ARLPUS Oil and GasUS Market
7D-7.7%-3.9%-6.1%
1Y158.9%46.2%4.2%

Return vs Industry: ARLP exceeded the US Oil and Gas industry which returned 48.8% over the past year.

Return vs Market: ARLP exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is ARLP's price volatile compared to industry and market?
ARLP volatility
ARLP Average Weekly Movement5.8%
Oil and Gas Industry Average Movement7.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: ARLP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ARLP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19712,902Joe Crafthttps://www.arlp.com

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.

Alliance Resource Partners Fundamentals Summary

How do Alliance Resource Partners's earnings and revenue compare to its market cap?
ARLP fundamental statistics
Market CapUS$1.72b
Earnings (TTM)US$158.14m
Revenue (TTM)US$1.46b

10.9x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARLP income statement (TTM)
RevenueUS$1.46b
Cost of RevenueUS$920.62m
Gross ProfitUS$542.40m
ExpensesUS$384.25m
EarningsUS$158.14m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 31, 2022

Earnings per share (EPS)1.24
Gross Margin37.07%
Net Profit Margin10.81%
Debt/Equity Ratio37.4%

How did ARLP perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

48.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARLP ($13.54) is trading below our estimate of fair value ($26.31)

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 (10.9x) compared to the US Oil and Gas industry average (17.9x).

PE vs Market: ARLP is good value based on its PE Ratio (10.9x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARLP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARLP is good value based on its PB Ratio (1.5x) compared to the US Oil and Gas industry average (2.2x).


Future Growth

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

2.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ARLP's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if ARLP's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARLP's revenue (2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ARLP's revenue (2% per year) is forecast to grow slower than 20% 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?

-23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARLP has high quality earnings.

Growing Profit Margin: ARLP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ARLP's earnings have declined by 23.8% per year over the past 5 years.

Accelerating Growth: ARLP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ARLP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).


Return on Equity

High ROE: ARLP's Return on Equity (13.7%) is considered low.


Financial Health

How is Alliance Resource Partners's financial position?


Financial Position Analysis

Short Term Liabilities: ARLP's short term assets ($326.2M) exceed its short term liabilities ($191.1M).

Long Term Liabilities: ARLP's short term assets ($326.2M) do not cover its long term liabilities ($776.1M).


Debt to Equity History and Analysis

Debt Level: ARLP's net debt to equity ratio (28.5%) is considered satisfactory.

Reducing Debt: ARLP's debt to equity ratio has reduced from 63.6% to 37.4% over the past 5 years.

Debt Coverage: ARLP's debt is well covered by operating cash flow (95%).

Interest Coverage: ARLP's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

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

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARLP's dividend (5.91%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: ARLP's dividend (5.91%) is in the top 25% of dividend payers in the US market (3.55%)


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.2%), ARLP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARLP's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).


Next Steps

Management

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

13.9yrs

Average management tenure


CEO

Joe Craft (70 yo)

22.42yrs

Tenure

US$1

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 ($USD1.00) is below average for companies of similar size in the US market ($USD3.73M).

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


Leadership Team

Experienced Management: ARLP's management team is seasoned and experienced (13.9 years average tenure).


Board Members

Experienced Board: ARLP's board of directors are seasoned and experienced ( 10.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ARLP insiders have only sold shares 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 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
  • Implied Market Cap: US$1.722b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:39
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.