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Arch Coal

NYSE:ARCH
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARCH
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

Arch Coal, Inc. produces and sells thermal and metallurgical coal from surface and underground mines. The last earnings update was 27 days ago. More info.


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ARCH Share Price and Events
7 Day Returns
-1.5%
NYSE:ARCH
0.4%
US Oil and Gas
-0.7%
US Market
1 Year Returns
13.1%
NYSE:ARCH
-16.7%
US Oil and Gas
3%
US Market
ARCH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arch Coal (ARCH) -1.5% 0.8% 0.5% 13.1% - -
US Oil and Gas 0.4% -4.6% -2.2% -16.7% -0.1% -32.7%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • ARCH outperformed the Oil and Gas industry which returned -16.7% over the past year.
  • ARCH outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
ARCH
Industry
5yr Volatility vs Market

ARCH Value

 Is Arch Coal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arch Coal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arch Coal.

NYSE:ARCH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ARCH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.901 (1 + (1- 21%) (21.63%))
1.037
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.037 * 5.96%)
8.91%

Discounted Cash Flow Calculation for NYSE:ARCH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arch Coal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ARCH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.91%)
2019 285.40 Analyst x3 262.05
2020 170.10 Analyst x3 143.41
2021 82.00 Analyst x1 63.48
2022 57.77 Est @ -29.55% 41.06
2023 46.29 Est @ -19.87% 30.21
2024 40.23 Est @ -13.09% 24.11
2025 36.88 Est @ -8.34% 20.29
2026 35.03 Est @ -5.02% 17.70
2027 34.08 Est @ -2.7% 15.81
2028 33.72 Est @ -1.07% 14.36
Present value of next 10 years cash flows $632.48
NYSE:ARCH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $33.72 × (1 + 2.73%) ÷ (8.91% – 2.73%)
$560.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $560.52 ÷ (1 + 8.91%)10
$238.74
NYSE:ARCH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $632.48 + $238.74
$871.22
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $871.22 / 16.81
$51.83
NYSE:ARCH Discount to Share Price
Calculation Result
Value per share (USD) From above. $51.83
Current discount Discount to share price of $90.28
= -1 x ($90.28 - $51.83) / $51.83
-74.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Arch Coal is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arch Coal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arch Coal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ARCH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $17.29
NYSE:ARCH Share Price ** NYSE (2019-05-17) in USD $90.28
United States of America Oil and Gas Industry PE Ratio Median Figure of 100 Publicly-Listed Oil and Gas Companies 12.94x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arch Coal.

NYSE:ARCH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ARCH Share Price ÷ EPS (both in USD)

= 90.28 ÷ 17.29

5.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arch Coal is good value based on earnings compared to the US Oil and Gas industry average.
  • Arch Coal is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Arch Coal's expected growth come at a high price?
Raw Data
NYSE:ARCH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-23.6%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 75 Publicly-Listed Oil and Gas Companies 0.51x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:ARCH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.22x ÷ -23.6%

-0.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arch Coal earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Arch Coal's assets?
Raw Data
NYSE:ARCH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $41.27
NYSE:ARCH Share Price * NYSE (2019-05-17) in USD $90.28
United States of America Oil and Gas Industry PB Ratio Median Figure of 194 Publicly-Listed Oil and Gas Companies 1.05x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:ARCH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ARCH Share Price ÷ Book Value per Share (both in USD)

= 90.28 ÷ 41.27

2.19x

* Primary Listing of Arch Coal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arch Coal is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Arch Coal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Arch Coal has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ARCH Future Performance

 How is Arch Coal expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-23.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arch Coal expected to grow at an attractive rate?
  • Arch Coal's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Arch Coal's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Arch Coal's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ARCH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ARCH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -23.6%
NYSE:ARCH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -0.7%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 12.9%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ARCH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ARCH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,536 1
2021-12-31 2,244 343 190 6
2020-12-31 2,286 399 210 8
2019-12-31 2,346 430 307 8
NYSE:ARCH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,387 436 325
2018-12-31 2,407 418 313
2018-09-30 2,361 360 308
2018-06-30 2,341 341 253
2018-03-31 2,299 338 247
2017-12-31 2,325 396 238
2017-09-30 2,340 189 625
2017-06-30 2,277 117 505
2017-03-31 2,147 -8 292
2016-12-31 1,974 -144 33
2016-09-30 1,962 4 -1,066
2016-06-30 2,100 21 -3,014

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arch Coal's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Arch Coal's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ARCH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Arch Coal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARCH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 10.47 13.43 8.42 4.00
2020-12-31 12.41 17.01 8.39 7.00
2019-12-31 17.36 19.29 14.08 7.00
NYSE:ARCH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 17.29
2018-12-31 15.90
2018-09-30 15.02
2018-06-30 11.72
2018-03-31 10.87
2017-12-31 10.05
2017-09-30 22.84
2017-06-30 18.86
2017-03-31 11.25
2016-12-31 1.34
2016-09-30 -50.08
2016-06-30 -141.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Arch Coal is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Arch Coal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arch Coal has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ARCH Past Performance

  How has Arch Coal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arch Coal's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arch Coal has delivered over 20% year on year earnings growth in the past 5 years.
  • Arch Coal's 1-year earnings growth is less than its 5-year average (31.8% vs 42.3%)
  • Arch Coal's earnings growth has exceeded the US Oil and Gas industry average in the past year (31.8% vs 31.4%).
Earnings and Revenue History
Arch Coal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arch Coal Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ARCH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,387.38 325.33 102.11
2018-12-31 2,407.49 312.58 103.50
2018-09-30 2,361.07 307.75 99.43
2018-06-30 2,341.43 252.91 97.66
2018-03-31 2,298.94 246.77 95.66
2017-12-31 2,324.62 238.45 89.89
2017-09-30 2,340.07 624.64 89.12
2017-06-30 2,276.83 504.87 87.51
2017-03-31 2,147.27 291.82 83.84
2016-12-31 1,974.40 33.45 84.79
2016-09-30 1,961.96 -1,066.38 85.52
2016-06-30 2,100.20 -3,014.43 90.76
2016-03-31 2,324.36 -3,006.65 96.00
2015-12-31 2,573.26 -2,913.14 98.78
2015-09-30 2,755.20 -2,520.91 99.62
2015-06-30 2,808.84 -618.65 102.03
2015-03-31 2,878.15 -547.41 107.69
2014-12-31 2,937.12 -558.35 114.22
2014-09-30 2,911.31 -691.01 124.34
2014-06-30 2,960.40 -801.56 125.00
2014-03-31 3,012.96 -785.05 129.38
2013-12-31 3,014.36 -745.23 133.45
2013-09-30 3,162.01 -679.47 131.31
2013-06-30 3,345.91 -447.03 135.77
2013-03-31 3,545.26 -809.20 136.65
2012-12-31 3,768.13 -739.18 134.30
2012-09-30 4,129.85 -361.27 125.61
2012-06-30 4,353.35 -377.05 125.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arch Coal made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Arch Coal used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Arch Coal has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Arch Coal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arch Coal has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ARCH Health

 How is Arch Coal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arch Coal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arch Coal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arch Coal's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Arch Coal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arch Coal Company Filings, last reported 1 month ago.

NYSE:ARCH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 699.95 328.30 383.41
2018-12-31 704.82 317.98 427.73
2018-09-30 687.14 314.31 408.21
2018-06-30 640.95 317.69 402.48
2018-03-31 688.46 322.07 432.98
2017-12-31 665.87 325.92 429.23
2017-09-30 672.48 321.17 452.97
2017-06-30 785.06 323.05 493.37
2017-03-31 801.71 325.93 470.09
2016-12-31 746.58 362.88 393.44
2016-09-30 -1,676.09 5,060.24 511.66
2016-06-30 -1,626.99 5,063.10 473.23
2016-03-31 -1,449.13 5,067.94 594.19
2015-12-31 -1,244.29 5,073.31 650.97
2015-09-30 -605.44 5,140.73 694.52
2015-06-30 1,394.03 5,146.34 689.41
2015-03-31 1,560.32 5,152.35 939.49
2014-12-31 1,668.15 5,160.37 983.19
2014-09-30 1,934.40 5,156.16 1,045.00
2014-06-30 2,031.39 5,143.62 988.80
2014-03-31 2,126.69 5,142.95 1,114.33
2013-12-31 2,253.25 5,151.50 1,159.51
2013-09-30 2,581.65 5,097.43 1,381.85
2013-06-30 2,710.91 5,102.48 892.67
2013-03-31 2,782.35 5,110.51 978.53
2012-12-31 2,854.57 5,118.78 1,018.93
2012-09-30 3,165.27 4,581.14 650.12
2012-06-30 3,142.42 4,575.61 512.53
  • Arch Coal's level of debt (46.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (241.9% vs 46.9% today).
  • Debt is well covered by operating cash flow (132.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.6x coverage).
X
Financial health checks
We assess Arch Coal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arch Coal has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ARCH Dividends

 What is Arch Coal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.99%
Current annual income from Arch Coal dividends. Estimated to be 1.99% next year.
If you bought $2,000 of Arch Coal shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Arch Coal's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Arch Coal's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment

Purchase Arch Coal before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ARCH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 66 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ARCH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.80 1.00
2021-12-31 1.80 5.00
2020-12-31 1.80 5.00
2019-12-31 1.80 5.00
NYSE:ARCH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-23 1.800 1.874
2019-02-14 1.800 1.984
2018-10-23 1.600 1.853
2018-07-31 1.600 1.768
2018-04-26 1.600 1.987
2018-02-23 1.600 1.679
2018-02-13 1.600 1.708
2017-10-31 1.400 1.618
2017-07-27 1.400 1.881
2017-05-02 1.400 1.988

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Arch Coal has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Arch Coal only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Arch Coal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (10.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (8.6x coverage).
X
Income/ dividend checks
We assess Arch Coal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arch Coal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arch Coal has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ARCH Management

 What is the CEO of Arch Coal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Eaves
COMPENSATION $9,227,715
AGE 60
TENURE AS CEO 7.1 years
CEO Bio

Mr. John W. Eaves, also known as Jo, has been Chief Executive Officer of Arch Coal, Inc. since April 26, 2012. Mr. Eaves served as President of Arch Coal, Inc since April 28, 2006 until April 23, 2015. He served as the Chief Operating Officer at Arch Coal Inc. since December 2002 until April 26, 2012. Mr. Eaves joined Arch Coal Inc. in 1987 and served as its Executive Vice President from December 2002 to April 28, 2006. He served as Senior Vice President of Marketing at Arch Coal Inc. from February 2000 to December 2002. He served as President of Arch Coal Sales Company Inc. from September 1995 to December 2002. Mr. Eaves served as the Vice President of Marketing at Arch Coal Inc. from July 1997 to February 2000. He served in various capacities with Diamond Shamrock, Arch's predecessor and Natomas Coal Company. He has more than 30 years of experience in the coal industry. Mr. Eaves served as Chairman of the Board at Arch Coal Inc. since April 23, 2015 until October 7, 2016. Mr. Eaves served as Vice Chairman of Advanced Emissions Solutions, Inc. until November 10, 2011 and served as its Interim Vice Chairman since March 2006. He has been an Independent Director at CF Industries Holdings, Inc. since July 24, 2017. He is a Director of International Coal Group, Inc. and CoaLogix Inc. Mr. Eaves has been a Director at Arch Coal Inc. since February 23, 2006. Mr. Eaves has been a Director of CoaLogix Inc. since July 2009. He served as a Director of Advanced Emissions Solutions, Inc. from October 2003 to November 10, 2011. He serves on the boards of the National Association of Manufacturers and the National Mining Association. Mr. Eaves holds a B.S. from the University of Kentucky and completed the Executive Management program at the Wharton School of the University of Pennsylvania and the Advanced Management Program at Harvard Business School.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Arch Coal management team in years:

7.3
Average Tenure
56
Average Age
  • The average tenure for the Arch Coal management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Eaves

TITLE
CEO & Director
COMPENSATION
$9M
AGE
60
TENURE
7.1 yrs

Paul Lang

TITLE
President & COO
COMPENSATION
$6M
AGE
57
TENURE
4.1 yrs

John Drexler

TITLE
CFO & Senior VP
COMPENSATION
$4M
AGE
48
TENURE
11.1 yrs

John Ziegler

TITLE
Senior VP & Chief Administrative Officer
COMPENSATION
$2M
AGE
51
TENURE
0.3 yrs

Bob Jones

TITLE
Senior VP of Law
COMPENSATION
$2M
AGE
61
TENURE
19.2 yrs

John Lorson

TITLE
VP & Chief Accounting Officer

Deck Slone

TITLE
Senior Vice President of Strategy & Public Policy
AGE
54
TENURE
10.8 yrs

Matt Ferguson

TITLE
Senior Vice President of Metallurgical & International Thermal Coal - Arch Coal Sales
TENURE
7.3 yrs

Paul Demzik

TITLE
Senior VP & Chief Commercial Officer
AGE
56
TENURE
0.3 yrs

Greg Szczepan

TITLE
Controller & Director of External Financial Reporting
TENURE
11.1 yrs
Board of Directors Tenure

Average tenure and age of the Arch Coal board of directors in years:

2.6
Average Tenure
56
Average Age
  • The average tenure for the Arch Coal board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jim Chapman

TITLE
Chairman
COMPENSATION
$340K
AGE
56
TENURE
2.6 yrs

John Eaves

TITLE
CEO & Director
COMPENSATION
$9M
AGE
60
TENURE
13.3 yrs

Patrick Bartels

TITLE
Director
COMPENSATION
$245K
AGE
43
TENURE
2.6 yrs

Patrick Kriegshauser

TITLE
Director
COMPENSATION
$250K
AGE
56
TENURE
2.6 yrs

Rick Navarre

TITLE
Director
COMPENSATION
$243K
AGE
57
TENURE
2.6 yrs

Sherman Edmiston

TITLE
Director
COMPENSATION
$240K
AGE
56
TENURE
2.6 yrs

Bob Hamill

TITLE
Director
AGE
55
TENURE
0.3 yrs

Holly Koeppel

TITLE
Director
AGE
59
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Arch Coal insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Apr 19 Buy Robert Hamill Individual 26. Apr 19 26. Apr 19 1,000 $98.97 $98,970
18. Mar 19 Sell Monarch Alternative Capital LP Company 01. Mar 19 15. Mar 19 -253,380 $93.63 $-23,490,890
X
Management checks
We assess Arch Coal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arch Coal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ARCH News

Simply Wall St News

Have Insiders Been Buying Arch Coal, Inc. (NYSE:ARCH) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Arch Coal, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Arch Coal The Last 12 Months Of Insider Transactions At Arch Coal Director Robert Hamill made the biggest insider purchase in the last 12 months. … When combined with notable insider ownership, these factors suggest Arch Coal insiders are well aligned, and that they may think the share price is too low.

Simply Wall St -

A Closer Look At Arch Coal, Inc.'s (NYSE:ARCH) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.46 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Are Analysts Saying About Arch Coal, Inc.'s (NYSE:ARCH) Earnings Outlook?

The most recent earnings release Arch Coal, Inc.'s (NYSE:ARCH) announced in December 2018a

Simply Wall St -

Is Arch Coal, Inc. (NYSE:ARCH) A Great Dividend Stock?

In the last few years Arch Coal, Inc. … Let's dig deeper into whether Arch Coal should have a place in your portfolio. … Check out our latest analysis for Arch Coal

Simply Wall St -

Arch Coal, Inc. (NYSE:ARCH): What Can We Expect In The Future?

After Arch Coal, Inc.'s (NYSE:ARCH) earnings announcement on 31 December 2018, … the consensus outlook from analysts appear … with profits predicted to drop by -13% next year

Simply Wall St -

Read This Before Considering Arch Coal, Inc. (NYSE:ARCH) For Its Upcoming US$0.45 Dividend

Investors who want to cash in on Arch Coal, Inc.'s (NYSE:ARCH) upcoming dividend of US$0.45 per share have only 3 days left to buy the shares before its ex-dividend date, 04 March 2019, in time for dividends payable on the 15 March 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Arch Coal's latest financial data to analyse its dividend characteristics. … 5 questions I ask before picking a dividend stock?

Simply Wall St -

Is Arch Coal, Inc.’s (NYSE:ARCH) 14% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

A Closer Look At Arch Coal, Inc.'s (NYSE:ARCH) Impressive ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Arch Coal has a return on equity of 45% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Arch Coal Inc's (NYSE:ARCH) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as Arch Coal Inc (NYSE:ARCH) with its market cap of US$1.5b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Should You Be Tempted To Buy Arch Coal Inc (NYSE:ARCH) Because Of Its PE Ratio?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Arch Coal Inc (NYSE:ARCH) is currently trading at a trailing P/E of 8.1, which is lower than the industry average of 14.7. … Check out our latest analysis for Arch Coal

Simply Wall St -

ARCH Company Info

Description

Arch Coal, Inc. produces and sells thermal and metallurgical coal from surface and underground mines. As of December 31, 2018, the company operated nine active mines. It also owned or controlled primarily through long-term leases approximately 28,292 acres of coal land in Ohio; 1,060 acres of coal land in Maryland; 10,195 acres of coal land in Virginia; 359,122 acres of coal land in West Virginia; 81,868 acres of coal land in Wyoming; 268,802 acres of coal land in Illinois; 33,527 acres of coal land in Kentucky; 9,840 acres of coal land in Montana; 21,802 acres of coal land in New Mexico; 358 acres of coal land in Pennsylvania; and 19,146 acres of coal land in Colorado, as well as owned or controlled through long-term leases smaller parcels of property in Alabama, Indiana, Washington, Arkansas, California, Utah, and Texas. The company sells its products to utility, steel producers, and other industrial facilities in the United States, Europe, Asia, Central and South America, and Africa. Arch Coal, Inc. was founded in 1969 and is headquartered in St. Louis, Missouri.

Details
Name: Arch Coal, Inc.
ARCH
Exchange: NYSE
Founded: 1969
$1,517,593,167
16,809,849
Website: http://www.archcoal.com
Address: Arch Coal, Inc.
One CityPlace Drive,
Suite 300,
St. Louis,
Missouri, 63141,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ARCH Class A Common Stock New York Stock Exchange US USD 05. Oct 2016
DB ACCA Class A Common Stock Deutsche Boerse AG DE EUR 05. Oct 2016
Number of employees
Current staff
Staff numbers
3,822
Arch Coal employees.
Industry
Coal and Consumable Fuels
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 03:15
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/04/23
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.