Arch Resources Stock Intrinsic Value – ARCH RESOURCES Reports Second Quarter Earnings for FY2023
August 21, 2023
🌥️Earnings Overview
On July 27 2023, ARCH RESOURCES ($NYSE:ARCH) released their earnings report for the second quarter of FY2023, which ran until June 30 2023. Total revenue amounted to USD 757.3 million, representing a decrease of 33.2% compared to the same period in the previous year. Net income was reported at USD 77.4 million, reflecting a decrease of 81.0% compared to the second quarter of FY2022.
Stock Price
The stock opened at $112.0 and closed at $122.6, indicating an overall increase of 1.6% from the previous closing price of $120.7. This gain demonstrates ARCH RESOURCES‘ success in meeting its financial goals for the quarter. The quarterly report showed that ARCH RESOURCES is continuing to make progress in its operations and remains well-positioned for continued growth into the future. The company reported strong financial results and improved profitability, demonstrating the effectiveness of its strategies and positioning it to remain a leader in the industry.
Overall, these earnings indicate that ARCH RESOURCES is in a good position to continue to deliver strong results in the coming quarters, setting the stage for further growth and success in the future. Investors should be encouraged by the positive results seen in this quarter’s earnings report as it indicates that the company is on track for continued success. 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 |
| 3.35k | 926.94 | 27.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arch Resources. More…
| Operations | Investing | Financing |
| 971.26 | -245.1 | -806.61 |
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 |
| 2.39k | 961.34 | 76.34 |
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 |
| 20.9% | 267.1% | 22.1% |
| FCF Margin | ROE | ROA |
| 23.1% | 32.0% | 19.4% |
Analysis – Arch Resources Stock Intrinsic Value
At GoodWhale, we have performed a comprehensive analysis of ARCH RESOURCES‘s financials. Our proprietary Valuation Line indicates that the intrinsic value of a single ARCH RESOURCES share is around $99.6. However, the current stock price of ARCH RESOURCES is at $122.6, which is overvalued by 23.1%. This implies that there may be a potential opportunity to sell the stock at current prices and reap additional profits. More…
Peers
The coal industry is competitive, with a handful of large companies vying for market share. Arch Resources Inc is one of the largest coal producers in the world, and it competes with Exxaro Resources Ltd, Hallador Energy Co, and PT Bayan Resources Tbk. These companies are all large, well-established players in the coal industry, and they are all fighting for market share.
– Exxaro Resources Ltd ($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
Investors looking to analyze ARCH RESOURCES should note the company’s second quarter of FY2023 results, with total revenue dropping 33.2% year-on-year to USD 757.3 million. This led to an 81.0% decrease in net income to USD 77.4 million from the same period in the previous year. This news may be worrying for investors, given the significant drop in year-on-year performance. However, investors should focus on future performance of the company, review their strategy and monitor management’s efforts to improve expansion and profitability.
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