Arch Resources Stock Fair Value Calculation – Arch Resources Performance Takes a U-Turn for the Worse
June 15, 2023
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Arch Resources ($NYSE:ARCH) (ARCH) has taken a turn for the worse lately, with its performance headed in an unfavorable direction. Arch Resources is a diversified natural resource company that produces coal, uranium, and other energy-related products. Its primary focus is on the metallurgical and thermal coal markets located in the United States. This decline has been driven by a decrease in demand for coal, as well as the increasing cost of energy production due to stringent environmental regulations.
In addition, the company has been forced to scale back production due to falling demand, resulting in a decrease in revenue. Arch Resources is now facing a difficult road ahead as it tries to navigate the turbulent waters of the energy sector. The company must find ways to reduce costs and increase efficiency in order to remain competitive and profitable. In addition, it must continue to explore new sources of revenue in order to remain afloat. It remains to be seen whether or not Arch Resources will be able to turn its fortunes around in the near future.
Share Price
On Tuesday, ARCH RESOURCES took a U-turn for the worse as their stock opened at $108.6 and closed at $107.4, down 0.2% from the prior closing price of 107.6. The company’s declining performance could be a result of many factors, including changes in market conditions and unfavorable economic conditions. ARCH RESOURCES investors should remain on alert in order to navigate the potential risks associated with their investment. In the long run, it will be important for the company to take steps to improve its performance and ensure that its stock price does not continue to decrease. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arch Resources. More…
| Total Revenues | Net Income | Net Margin |
| 3.73k | 1.26k | 33.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arch Resources. More…
| Operations | Investing | Financing |
| 1.04k | -223.8 | -947.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arch Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.43k | 968.66 | 78.14 |
Key Ratios Snapshot
Some of the financial key ratios for Arch Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | 102.5% | 28.4% |
| FCF Margin | ROE | ROA |
| 23.1% | 46.8% | 27.2% |
Analysis – Arch Resources Stock Fair Value Calculation
At GoodWhale, we recently conducted an analysis of ARCH RESOURCES‘s wellbeing. After careful consideration, our proprietary Valuation Line determined that the fair value of ARCH RESOURCES share is around $101.8. However, we found that the stock is currently being traded at $107.4, implying a fair price that is overvalued by 5.5%. With this in mind, investors should be aware of the potential risks of investing in ARCH RESOURCES at this time. More…
Peers
The coal industry is competitive, with a handful of large companies vying for market share. Arch Resources Inc is one of the largest coal producers in the world, and it competes with Exxaro Resources Ltd, Hallador Energy Co, and PT Bayan Resources Tbk. These companies are all large, well-established players in the coal industry, and they are all fighting for market share.
– Exxaro Resources Ltd ($OTCPK:EXXAF)
Exxaro Resources Ltd is a coal and heavy minerals mining company with operations in South Africa, Australia, and China. The company has a market capitalization of $2.89 billion as of 2022 and a return on equity of 31.44%. Exxaro is the largest producer of coal in South Africa and also has substantial operations in iron ore, titanium ore, and zircon. The company has a strong focus on sustainable development and aims to be a leading player in the global transition to a low-carbon economy.
– Hallador Energy Co ($NASDAQ:HNRG)
Hallador Energy Co is a coal mining and processing company. The company has a market cap of 222.3 million and a return on equity of -1.47%. The company’s coal mines are located in Indiana and Ohio. The company produces and sells coal to utilities and industrial customers in the United States.
– PT Bayan Resources Tbk ($IDX:BYAN)
PT Bayan Resources Tbk is one of the largest thermal coal producers in Indonesia. The company has a market cap of 236.67T as of 2022 and a Return on Equity of 77.24%. PT Bayan Resources Tbk is engaged in the business of mining, marketing, and trading coal. The company produces a variety of coal products including thermal coal, metallurgical coal, and washed coal. PT Bayan Resources Tbk has a strong presence in the Indonesian coal market with a market share of around 20%.
Summary
Arch Resources (ARCH) is a publicly-traded coal producer headquartered in St. Louis, Missouri. The company has seen its performance trending in a negative direction as of late. Its stock price has dropped year-over-year, and analysts expect it to continue to decline in the short term. This is due to a number of factors, such as weak commodity prices, stressed balance sheets, and reduced demand for its coal products.
This could put the company at a disadvantage in the competitive coal market. As a result, potential investors should be aware of the risks associated with investing in ARCH. They should evaluate the company’s financials and consider the current risks and potential rewards before making an investment decision.
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