Alliance Resource Partners
Market Cap
US$742.8m
Last Updated
2021/05/09 23:38 UTC
Data Sources
Company Financials +
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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 20.1% per year for the next 3 years
Dividend of 6.85% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Good value with mediocre balance sheet.
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 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.
Market Performance
7 Day Return
6.6%
ARLP
7.4%
US Oil and Gas
0.2%
US Market
1 Year Return
73.8%
ARLP
40.3%
US Oil and Gas
49.9%
US Market
Return vs Industry: ARLP exceeded the US Oil and Gas industry which returned 40.3% over the past year.
Return vs Market: ARLP exceeded the US Market which returned 49.9% over the past year.
Shareholder returns
| ARLP | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | 7.4% | 0.2% |
| 30 Day | 1.2% | 9.7% | 1.5% |
| 90 Day | -8.0% | 20.9% | 3.3% |
| 1 Year | 76.8%73.8% | 49.3%40.3% | 52.4%49.9% |
| 3 Year | -58.7%-67.6% | -13.9%-25.6% | 63.7%53.4% |
| 5 Year | -39.0%-60.3% | 5.1%-15.3% | 130.6%104.9% |
Long-Term 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
2 years ago | Simply Wall St
Could Alliance Resource Partners LP's (NASDAQ:ARLP) Investor Composition Impacts Your Returns?2 years ago | Simply Wall St
Can Alliance Resource Partners LP (NASDAQ:ARLP) Save Your Portfolio?2 years ago | Simply Wall St
Should You Expect Alliance Resource Partners LP (NASDAQ:ARLP) To Continue Delivering An ROE Of 28.62%?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 ($5.84) is trading below our estimate of fair value ($18.31)
Significantly Below Fair Value: ARLP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARLP is poor value based on its PE Ratio (18.4x) compared to the US Oil and Gas industry average (14.4x).
PE vs Market: ARLP is good value based on its PE Ratio (18.4x) compared to the US market (20.2x).
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 good value based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (1.6x).
Future Growth
How is Alliance Resource Partners forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-20.1%
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 (-20.1% per year).
Earnings vs Market: ARLP's earnings are forecast to decline over the next 3 years (-20.1% per year).
High Growth Earnings: ARLP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ARLP's revenue (1.6% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: ARLP's revenue (1.6% 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?
-16.3%
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 16.3% 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 (-41.2%).
Return on Equity
High ROE: ARLP's Return on Equity (3.7%) is considered low.
Financial Health
How is Alliance Resource Partners's financial position?
Financial Position Analysis
Short Term Liabilities: ARLP's short term assets ($256.8M) exceed its short term liabilities ($211.3M).
Long Term Liabilities: ARLP's short term assets ($256.8M) do not cover its long term liabilities ($840.0M).
Debt to Equity History and Analysis
Debt Level: ARLP's debt to equity ratio (49.2%) is considered high.
Reducing Debt: ARLP's debt to equity ratio has reduced from 93% to 49.2% over the past 5 years.
Debt Coverage: ARLP's debt is well covered by operating cash flow (69.6%).
Interest Coverage: ARLP's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Balance Sheet
Dividend
What is Alliance Resource Partners's current dividend yield, its reliability and sustainability?
6.85%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARLP's dividend (6.85%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: ARLP's dividend (6.85%) is in the top 25% of dividend payers in the US market (3.4%)
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 high payout ratio (126.2%), ARLP's dividend payments are not well 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 (93.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.2yrs
Average management tenure
CEO
Joe Craft (69 yo)
21.75yrs
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 ($USD2.37M).
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 (12.2 years average tenure).
Board Members
Experienced Board: ARLP's board of directors are considered experienced (9.2 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$742.820m
- 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
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 segm...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/09 23:38 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.