Alliance Resource Partners, L.P.
Alliance Resource Partners, L.P. Fundamental Analysis
Alliance Resource Partners, L.P. (ARLP) shows moderate financial fundamentals with a PE ratio of 11.34, profit margin of 14.18%, and ROE of 17.15%. The company generates $2.2B in annual revenue with weak year-over-year growth of -4.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ARLP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentARLP demonstrates superior asset utilization.
Valuation Score
ExcellentARLP trades at attractive valuation levels.
Growth Score
WeakARLP faces weak or negative growth trends.
Financial Health Score
ExcellentARLP maintains a strong and stable balance sheet.
Profitability Score
ModerateARLP maintains healthy but balanced margins.
Key Financial Metrics
Is ARLP Expensive or Cheap?
P/E Ratio
ARLP trades at 11.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ARLP's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Alliance Resource Partners, L.P. at 1.91 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.63 times EBITDA. This is generally considered low.
How Well Does ARLP Make Money?
Net Profit Margin
For every $100 in sales, Alliance Resource Partners, L.P. keeps $14.18 as profit after all expenses.
Operating Margin
Core operations generate 17.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.15 in profit for every $100 of shareholder equity.
ROA
Alliance Resource Partners, L.P. generates $10.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Alliance Resource Partners, L.P. generates strong operating cash flow of $652.31M, reflecting robust business health.
Free Cash Flow
Alliance Resource Partners, L.P. generates strong free cash flow of $388.55M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.02 in free cash annually.
FCF Yield
ARLP converts 11.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How ARLP Stacks Against Its Sector Peers
| Metric | ARLP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.34 | 20.21 | Better (Cheaper) |
| ROE | 17.15% | 936.00% | Weak |
| Net Margin | 14.18% | -49264.00% (disorted) | Strong |
| Debt/Equity | 0.26 | -0.56 (disorted) | Distorted |
| Current Ratio | 2.10 | 4.81 | Strong Liquidity |
| ROA | 10.90% | -11576037.00% (disorted) | Strong |
ARLP 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 Alliance Resource Partners, L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.97%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-9.55%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
56.16%
Industry Style: Cyclical, Value, Commodity
High Growth