Arch Resources, Inc.
Arch Resources, Inc. Fundamental Analysis
Arch Resources, Inc. (ARCH) shows moderate financial fundamentals with a PE ratio of 5.30, profit margin of 14.75%, and ROE of 32.62%. The company generates $3.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 93.8/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ARCH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentARCH demonstrates superior asset utilization.
Valuation Score
ExcellentARCH trades at attractive valuation levels.
Growth Score
ModerateARCH shows steady but slowing expansion.
Financial Health Score
ExcellentARCH maintains a strong and stable balance sheet.
Profitability Score
ModerateARCH maintains healthy but balanced margins.
Key Financial Metrics
Is ARCH Expensive or Cheap?
P/E Ratio
ARCH trades at 5.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARCH's PEG of -0.17 indicates potential undervaluation.
Price to Book
The market values Arch Resources, Inc. at 1.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.51 times EBITDA. This is generally considered low.
How Well Does ARCH Make Money?
Net Profit Margin
For every $100 in sales, Arch Resources, Inc. keeps $14.75 as profit after all expenses.
Operating Margin
Core operations generate 17.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.62 in profit for every $100 of shareholder equity.
ROA
Arch Resources, Inc. generates $18.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arch Resources, Inc. produces operating cash flow of $631.04M, showing steady but balanced cash generation.
Free Cash Flow
Arch Resources, Inc. generates strong free cash flow of $456.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $25.19 in free cash annually.
FCF Yield
ARCH converts 18.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How ARCH Stacks Against Its Sector Peers
| Metric | ARCH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.30 | 20.21 | Better (Cheaper) |
| ROE | 32.62% | 936.00% | Weak |
| Net Margin | 14.75% | -49264.00% (disorted) | Strong |
| Debt/Equity | 0.10 | -0.56 (disorted) | Distorted |
| Current Ratio | 2.49 | 4.81 | Strong Liquidity |
| ROA | 18.68% | -11576037.00% (disorted) | Strong |
ARCH outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arch Resources, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity