NYSE:ARCH

Stock Analysis Report

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Executive Summary

Arch Resources, Inc. produces and sells thermal and metallurgical coal from surface and underground mines.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Arch Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ARCH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

ARCH

3.1%

US Oil and Gas

0.7%

US Market


1 Year Return

-56.4%

ARCH

-29.6%

US Oil and Gas

20.1%

US Market

Return vs Industry: ARCH underperformed the US Oil and Gas industry which returned -29.6% over the past year.

Return vs Market: ARCH underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ARCHIndustryMarket
7 Day4.0%3.1%0.7%
30 Day16.7%7.0%6.4%
90 Day13.1%6.4%20.1%
1 Year-55.5%-56.4%-26.0%-29.6%22.6%20.1%
3 Year-52.8%-55.5%-27.1%-35.1%45.1%35.7%
5 Yearn/a-28.2%-39.9%79.7%60.3%

Price Volatility Vs. Market

How volatile is Arch Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arch Resources 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: ARCH ($32.84) is trading below our estimate of fair value ($424.99)

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


Price To Earnings Ratio

PE vs Industry: ARCH is poor value based on its PE Ratio (21.3x) compared to the US Oil and Gas industry average (11.1x).

PE vs Market: ARCH is poor value based on its PE Ratio (21.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: ARCH is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: ARCH's PB Ratio (0.9x) is in line with the US Oil and Gas industry average.


Next Steps

Future Growth

How is Arch Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

107.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARCH's forecast earnings growth (107.8% per year) is above the savings rate (2.2%).

Earnings vs Market: ARCH's earnings (107.8% per year) are forecast to grow faster than the US market (24.1% per year).

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

Revenue vs Market: ARCH's revenue (7.4% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: ARCH's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARCH's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Arch Resources performed over the past 5 years?

66.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCH has a high level of non-cash earnings.

Growing Profit Margin: ARCH's current net profit margins (1.3%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: ARCH has become profitable over the past 5 years, growing earnings by 66.8% per year.

Accelerating Growth: ARCH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARCH had negative earnings growth (-93.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-52%).


Return on Equity

High ROE: ARCH's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Arch Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ARCH's short term assets ($564.5M) exceed its short term liabilities ($273.5M).

Long Term Liabilities: ARCH's short term assets ($564.5M) do not cover its long term liabilities ($981.1M).


Debt to Equity History and Analysis

Debt Level: ARCH's debt to equity ratio (64.7%) is considered high.

Reducing Debt: ARCH's debt to equity ratio has reduced from 381% to 64.7% over the past 5 years.

Debt Coverage: ARCH's debt is well covered by operating cash flow (62%).

Interest Coverage: ARCH's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.06%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARCH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARCH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARCH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARCH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ARCH is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARCH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Paul Lang (59 yo)

0.33

Tenure

US$1,854,340

Compensation

Mr. Paul A. Lang has been a Director of Arch Resources, Inc. since February 27, 2020 and has been its Chief Executive Officer since April 30, 2020. He has been the President of Arch Resources, Inc. since A ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.85M) is about average for companies of similar size in the US market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Eaves
Executive Chairman0.33yrUS$2.93m0.43%
$ 2.2m
Paul Lang
CEO, President & Director0.33yrUS$1.85m0.23%
$ 1.1m
John Drexler
Senior VP & COO0.33yrUS$1.39m0.14%
$ 700.8k
John Ziegler
Senior VP & Chief Administrative Officer1.58yrsUS$785.44k0.084%
$ 418.9k
Robert Jones
Senior VP of Law20.42yrsUS$905.94k0.084%
$ 417.1k
Matthew Giljum
Senior VP & CFO0.33yrno data0.0098%
$ 48.5k
John Lorson
VP & Chief Accounting Officerno datano data0.0072%
$ 36.0k
Deck Slone
Senior Vice President of Strategy12yrsno data0.059%
$ 294.3k
Matthew Ferguson
Senior Vice President of Metallurgical & International Thermal Coal - Arch Coal Sales8.5yrsno datano data
Paul Demzik
Senior VP & Chief Commercial Officer1.58yrsno datano data
Gregory Szczepan
Controller & Director of External Financial Reporting12.33yrsno datano data
J. Sykes
President of Eastern Operationsno datano datano data

1.6yrs

Average Tenure

58yo

Average Age

Experienced Management: ARCH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Eaves
Executive Chairman0.33yrUS$2.93m0.43%
$ 2.2m
Paul Lang
CEO, President & Director0.33yrUS$1.85m0.23%
$ 1.1m
Richard Navarre
Independent Director3.83yrsUS$120.00k0.025%
$ 125.6k
Holly Koeppel
Independent Director1.5yrsUS$168.44k0.013%
$ 64.0k
James Chapman
Lead Independent Director0.33yrUS$172.92k0.042%
$ 209.3k
Patrick Bartels
Independent Director3.83yrsUS$116.25k0.0096%
$ 47.6k
Patrick Kriegshauser
Independent Director3.83yrsUS$125.00k0.030%
$ 149.1k
Sherman Edmiston
Independent Director3.83yrsUS$115.00k0.025%
$ 125.6k
Robert Hamill
Independent Director1.5yrsUS$168.44k0.026%
$ 131.4k

1.5yrs

Average Tenure

58yo

Average Age

Experienced Board: ARCH's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: ARCH 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

Arch Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arch Resources, Inc.
  • Ticker: ARCH
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$497.410m
  • Shares outstanding: 15.15m
  • Website: https://www.archrsc.com

Number of Employees


Location

  • Arch Resources, Inc.
  • One CityPlace Drive
  • Suite 300
  • St. Louis
  • Missouri
  • 63141
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACCADB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2016
ARCHNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2016

Biography

Arch Resources, Inc. produces and sells thermal and metallurgical coal from surface and underground mines. As of December 31, 2019, the company operated eight active mines. It also owned or controlled prim ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/13 23:43
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.