Arch Resources
Market Cap
US$497.4m
Last Updated
2020/08/13 23:43 UTC
Data Sources
Company Financials +
Executive Summary
Arch Resources, Inc. produces and sells thermal and metallurgical coal from surface and underground mines.
Rewards
Risk Analysis
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
| ARCH | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.0% | 3.1% | 0.7% |
| 30 Day | 16.7% | 7.0% | 6.4% |
| 90 Day | 13.1% | 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 Year | n/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
3 days ago | Simply Wall St
How Much Are Arch Resources, Inc. (NYSE:ARCH) Insiders Taking Off The Table?2 weeks ago | Simply Wall St
Here's Why Arch Resources (NYSE:ARCH) Has A Meaningful Debt Burden3 months ago | Simply Wall St
Need To Know: Analysts Just Made A Substantial Cut To Their Arch Coal, Inc. (NYSE:ARCH) EstimatesValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 0.33yr | US$2.93m | 0.43% $ 2.2m | |
| CEO, President & Director | 0.33yr | US$1.85m | 0.23% $ 1.1m | |
| Senior VP & COO | 0.33yr | US$1.39m | 0.14% $ 700.8k | |
| Senior VP & Chief Administrative Officer | 1.58yrs | US$785.44k | 0.084% $ 418.9k | |
| Senior VP of Law | 20.42yrs | US$905.94k | 0.084% $ 417.1k | |
| Senior VP & CFO | 0.33yr | no data | 0.0098% $ 48.5k | |
| VP & Chief Accounting Officer | no data | no data | 0.0072% $ 36.0k | |
| Senior Vice President of Strategy | 12yrs | no data | 0.059% $ 294.3k | |
| Senior Vice President of Metallurgical & International Thermal Coal - Arch Coal Sales | 8.5yrs | no data | no data | |
| Senior VP & Chief Commercial Officer | 1.58yrs | no data | no data | |
| Controller & Director of External Financial Reporting | 12.33yrs | no data | no data | |
| President of Eastern Operations | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 0.33yr | US$2.93m | 0.43% $ 2.2m | |
| CEO, President & Director | 0.33yr | US$1.85m | 0.23% $ 1.1m | |
| Independent Director | 3.83yrs | US$120.00k | 0.025% $ 125.6k | |
| Independent Director | 1.5yrs | US$168.44k | 0.013% $ 64.0k | |
| Lead Independent Director | 0.33yr | US$172.92k | 0.042% $ 209.3k | |
| Independent Director | 3.83yrs | US$116.25k | 0.0096% $ 47.6k | |
| Independent Director | 3.83yrs | US$125.00k | 0.030% $ 149.1k | |
| Independent Director | 3.83yrs | US$115.00k | 0.025% $ 125.6k | |
| Independent Director | 1.5yrs | US$168.44k | 0.026% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ACCA | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Oct 2016 |
| ARCH | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/13 23:43 |
| End of Day Share Price | 2020/08/13 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.