Alliance Resource Partners LP

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ARLP : NASDAQ : Basic Materials
$25.475 up 0.48 | 1.9%
Today's Range: 24.75 - 25.6
Avg. Daily Volume: 351200.0
12/09/16 - 3:59 PM ET

Financial Analysis


ALLIANCE RESOURCE PTNRS -LP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged 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 very weak liquidity. Currently, the Quick Ratio is 0.24 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.73% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)552.07566.45
EBITDA ($mil)177.04191.88
EBIT ($mil)96.43107.22
Net Income ($mil)89.7883.38


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)21.3735.94
Total Assets ($mil)2244.282505.39
Total Debt ($mil)773.52968.98
Equity ($mil)1020.611049.31


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.3537.04
EBITDA Margin32.0633.87
Operating Margin17.4718.93
Sales Turnover0.870.93
Return on Assets10.7516.3
Return on Equity23.6438.92
Debt Q3 FY16 Q3 FY15
Current Ratio0.41.01
Debt/Capital0.430.48
Interest Expense8.057.5
Interest Coverage11.9814.29


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)74.3874.19
Div / share0.440.68
EPS0.910.61
Book value / share13.7214.14
Institutional Own % n/a n/a
Avg Daily Volume340404.0323398.0

Valuation


BUY. ALLIANCE RESOURCE PTNRS -LP's P/E ratio indicates a significant discount compared to an average of 40.56 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 25.22. To use another comparison, its price-to-book ratio of 1.76 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 22.94. 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 12.68 Peers 40.56   ARLP 2.63 Peers 13.38

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 16.17 Peers 57.97   ARLP 0.69 Peers 2.13

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ARLP 1.76 Peers 22.94   ARLP -45.25 Peers -248.32

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 0.92 Peers 2.75   ARLP -16.20 Peers -20.46

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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