ARLP Intrinsic Stock Value – Investigating if Alliance Resource Partners, L.P. is a Leader in the Thermal Coal Industry
December 21, 2023
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Investigating if Alliance Resource Partners ($NASDAQ:ARLP), L.P. is a leader in the Thermal Coal Industry is a crucial question to ask, given the ongoing shift away from coal usage in favor of renewable energy sources. It is one of the largest diversified coal producers in the U.S., operating mining complexes in Illinois, Indiana, Kentucky, West Virginia, and Maryland. ARLP’s portfolio of mines consists of both underground and surface mining operations, and it produces coal for both steam and metallurgical purposes. As the coal industry continues to face pressure from the rise of renewable energy, ARLP has taken steps to remain competitive, such as engaging in joint venture operations and actively exploring value-enhancing opportunities.
While ARLP has faced some challenges due to a decrease in demand for thermal coal, the company has managed to remain profitable and is still seen as a major player in the thermal coal industry. Although the demand for thermal coal has decreased, ARLP has been able to remain competitive by engaging in joint venture operations and exploring value-enhancing opportunities.
Stock Price
On Thursday, the stock opened at $18.8 and closed at $19.5, representing a 5.4% increase from the previous closing price of $18.5. This suggests that ALLIANCE RESOURCE PARTNERS has seen growth in the current market, which could signal their leadership in the thermal coal industry. To gain a better understanding of their success, further research is necessary. This should include examining their production, profits, and customer base to determine if they are in fact a leader in the thermal coal industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ARLP. More…
| Total Revenues | Net Income | Net Margin |
| 2.64k | 739.7 | 27.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ARLP. More…
| Operations | Investing | Financing |
| 978.67 | -600.33 | -459.57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ARLP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.81k | 961.11 | 14.38 |
Key Ratios Snapshot
Some of the financial key ratios for ARLP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.1% | 128.2% | 29.7% |
| FCF Margin | ROE | ROA |
| 22.9% | 27.3% | 17.4% |
Analysis – ARLP Intrinsic Stock Value
At GoodWhale, we recently performed an analysis of ALLIANCE RESOURCE PARTNERS’s wellbeing. Our proprietary Valuation Line analysis concluded that the fair value of an ALLIANCE RESOURCE PARTNERS share is around $19.8. Unfortunately, the current market price for ALLIANCE RESOURCE PARTNERS stock is listed at $19.5, meaning it is being undervalued by 1.5%. As a result, investors should seriously consider investing in ALLIANCE RESOURCE PARTNERS stock, as it offers potential for a great return on investment. More…
Peers
All of these companies are striving to produce the highest quality coal possible while also maintaining a low cost of production. Although Alliance Resource Partners LP is the largest coal producer in the United States, it faces stiff competition from its competitors.
– NACCO Industries Inc ($NYSE:NC)
NACCO Industries, Inc. is a holding company that operates through its subsidiaries. The company’s businesses include mining, retail, and other. Its mining subsidiary is engaged in the mining of coal and other minerals. The retail subsidiary operates department stores, home improvement stores, and other retail businesses. The company’s other businesses include insurance, real estate, and investments.
– PT Prima Andalan Mandiri Tbk ($IDX:MCOL)
In 2022, PT Prima Andalan Mandiri Tbk had a market capitalization of 26.22 trillion rupiah and a return on equity of 69.24 percent. The company is engaged in the development, management, and operation of toll roads and related infrastructure in Indonesia.
– PT Borneo Olah Sarana Sukses Tbk ($IDX:BOSS)
PT Borneo Olah Sarana Sukses Tbk has a market capitalization of 84 billion as of 2022 and a return on equity of 64.91%. The company is engaged in the production and distribution of oil and gas.
Summary
Alliance Resource Partners, L.P. (ARLP) is a publicly traded master limited partnership that produces and markets coal primarily to utilities and industrial users. ARLP has a strong presence in the thermal coal industry, primarily in the Illinois Basin and Appalachian regions of the United States. ARLP’s stock price has been volatile over the past year, but has recently moved up significantly from its one-year low. Analysts expect ARLP’s thermal coal demand to remain strong in the near-term, as its cost structure and coal quality make it an attractive option for customers.
Additionally, ARLP has a successful track record of cost control and financial discipline, which have helped the company remain competitive in the market.
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