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Market Cap

US$767.6m

Last Updated

2021/05/05 23:46 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 73.3% below our estimate of its fair value

Earnings are forecast to grow 59.48% per year

Risk Analysis

No risks detected for ARCH from our risk checks.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ARCH's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

ARCH

3.3%

US Oil and Gas

-1.6%

US Market


1 Year Return

87.8%

ARCH

45.3%

US Oil and Gas

52.8%

US Market

Return vs Industry: ARCH exceeded the US Oil and Gas industry which returned 37.7% over the past year.

Return vs Market: ARCH exceeded the US Market which returned 52.4% over the past year.


Shareholder returns

ARCHIndustryMarket
7 Day3.8%3.3%-1.6%
30 Day14.7%6.4%1.3%
90 Day2.7%23.9%3.5%
1 Year87.8%87.8%54.8%45.3%55.4%52.8%
3 Year-31.8%-34.9%-14.8%-26.5%63.5%53.2%
5 Yearn/a2.9%-17.1%125.8%100.7%

Long-Term 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 ($50.19) is trading below our estimate of fair value ($188.31)

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


Price To Earnings Ratio

PE vs Industry: ARCH is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: ARCH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARCH is overvalued based on its PB Ratio (2.7x) compared to the US Oil and Gas industry average (1.5x).


Future Growth

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

59.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARCH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ARCH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ARCH's is expected to become profitable in the next 3 years.

Revenue vs Market: ARCH's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: ARCH's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARCH's Return on Equity is forecast to be low in 3 years time (14.4%).


Past Performance

How has Arch Resources performed over the past 5 years?

48.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCH is currently unprofitable.

Growing Profit Margin: ARCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARCH is unprofitable, but has reduced losses over the past 5 years at a rate of 48.3% per year.

Accelerating Growth: Unable to compare ARCH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ARCH is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-41.9%).


Return on Equity

High ROE: ARCH has a negative Return on Equity (-115.6%), as it is currently unprofitable.


Financial Health

How is Arch Resources's financial position?


Financial Position Analysis

Short Term Liabilities: ARCH's short term assets ($583.2M) exceed its short term liabilities ($297.7M).

Long Term Liabilities: ARCH's short term assets ($583.2M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ARCH's debt to equity ratio (194.4%) is considered high.

Reducing Debt: ARCH had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if ARCH has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ARCH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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

0.84%

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?

2.3yrs

Average management tenure


CEO

Paul Lang (59 yo)

1.08yrs

Tenure

US$3,681,055

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 ($USD3.68M) is above average for companies of similar size in the US market ($USD2.33M).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ARCH's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: ARCH's board of directors are not considered experienced ( 2.3 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$767.609m
  • Shares outstanding: 15.29m
  • Website: https://www.archrsc.com

Number of Employees


Location

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

Listings


Biography

Arch Resources, Inc. produces and sells thermal and metallurgical coal from surface and underground mines. As of December 31, 2020, the company operated seven 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 Analysis2021/05/05 23:46
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
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.