NEW YORK (TheStreet) -- Alpha Natural Resources (ANR - Get Report) dipped Monday after the EPA announced a plan to reduce carbon emissions from the power sector by 30% nationwide below 2005 levels by 2030.
The EPA said the plan would reduce particle pollution, nitrogen oxides and sulfur dioxide by more than 25% and would also cut instances of asthma attacks. The proposal includes a flexible timeline for each state to submit plans to the EPA by June 2016, with an option for states to submit their plans in two parts if they need more time.
The stock was down 1.18% to $3.34 at 2:08 p.m.
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- The gross profit margin for ALPHA NATURAL RESOURCES INC is currently extremely low, coming in at 5.92%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.00% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$53.96 million or 182.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- ANR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 47.88%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ALPHA NATURAL RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- ANR, with its decline in revenue, underperformed when compared the industry average of 3.0%. Since the same quarter one year prior, revenues fell by 16.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: ANR Ratings Report