NEW YORK (TheStreet) -- Shares of Alpha Natural Resources Inc. (ANR) are climbing higher by 4.53% to $2.54 in late afternoon trading on Thursday, as the coal sector continues to rise following Tuesday's election results.
With a Republican majority in Congress coal miners are expecting the party, led by Senator Mitch McConnell, will oppose the EPA's restrictions on coal as well as other environmental regulations they consider to be "burdensome," Bloomberg reports.
Republicans will also seek to approve the Keystone XL Pipeline as they now possess the number of supporting votes needed to move the project forward.
"I think you're going to see us bring up energy legislation right away and Keystone will be one of the first things we pass," North Dakota Republican Senator John Hoeven said, according to Fox News.
Separately, TheStreet Ratings team rates ALPHA NATURAL RESOURCES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALPHA NATURAL RESOURCES INC (ANR) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 176.1% when compared to the same quarter one year ago, falling from -$185.68 million to -$512.63 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness 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.
- Net operating cash flow has significantly decreased to -$217.05 million or 10445.47% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for ALPHA NATURAL RESOURCES INC is currently extremely low, coming in at 11.12%. Regardless of ANR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ANR's net profit margin of -48.63% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio of 1.09 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, ANR has managed to keep a strong quick ratio of 1.64, which demonstrates the ability to cover short-term cash needs.
- You can view the full analysis from the report here: ANR Ratings Report