Alliance Resource Partners LP

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ARLP : NASDAQ : Basic Materials
$22.25 up 0.55 | 2.53%
Today's Range: 21.8 - 22.4
Avg. Daily Volume: 328900.0
04/24/17 - 4:00 PM ET

Financial Analysis


ALLIANCE RESOURCE PTNRS -LP's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. ALLIANCE RESOURCE PTNRS -LP has weak liquidity. Currently, the Quick Ratio is 0.59 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.24% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)527.4542.15
EBITDA ($mil)206.1797.2
EBIT ($mil)124.36.21
Net Income ($mil)119.621.48


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)39.7833.43
Total Assets ($mil)2193.042363.13
Total Debt ($mil)662.06919.26
Equity ($mil)1087.87986.78


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin42.7920.72
EBITDA Margin39.0917.92
Operating Margin23.571.15
Sales Turnover0.880.96
Return on Assets15.4712.95
Return on Equity31.1931.03
Debt Q4 FY16 Q4 FY15
Current Ratio0.850.74
Debt/Capital0.380.48
Interest Expense7.327.7
Interest Coverage16.980.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)74.3874.19
Div / share0.440.68
EPS1.3-0.19
Book value / share14.6313.3
Institutional Own % n/a n/a
Avg Daily Volume327364.0366508.0

Valuation


BUY. ALLIANCE RESOURCE PTNRS -LP's P/E ratio indicates a significant discount compared to an average of 145.46 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 1.47 indicates a significant discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 38.31. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ALLIANCE RESOURCE PTNRS -LP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ARLP 6.33 Peers 145.46   ARLP 2.27 Peers 11.69

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ARLP is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ARLP is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ARLP 8.72 Peers 26.05   ARLP NM Peers 0.64

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ARLP is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ARLP's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ARLP 1.47 Peers 38.31   ARLP 61.42 Peers 41.17

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ARLP is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ARLP is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ARLP 0.83 Peers 2.53   ARLP -15.06 Peers -9.44

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ARLP is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ARLP significantly trails its peers on the basis of sales growth

 

 

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