Alliance Resource Partners LP () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hallador Energy Co.

Alliance Resource Partners LP

NACCO Industries, Inc.

CONSOL Energy, Inc.

Natural Resource Partners LP

SunCoke Energy, Inc.

Warrior Met Coal, Inc.

Arch Resources, Inc.

Alpha Metallurgical Resources, Inc.

Peabody Energy Corp.

Ramaco Resources, Inc.

Why is Alliance Resource Partners LP ?

High Management Efficiency with a high ROE of 21.64%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.60 times

Healthy long term growth as Operating profit has grown by an annual rate 29.48%

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 675.07 MM
NET PROFIT(HY) At USD 148.3 MM has Grown at -39.56%
ROCE(HY) Lowest at 12.59%

With ROE of 16.61%, it has a very attractive valuation with a 1.83 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.20%, its profits have fallen by -47.9%

Below par performance in long term as well as near term

Along with generating -7.20% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Alliance Resource Partners LP should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alliance Resource Partners LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alliance Resource Partners LP

-100.0%

-0.20

26.00%

S&P 500

12.16%

0.81

19.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.50%

EBIT Growth (5y)

29.48%

EBIT to Interest (avg)

11.65

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.09

Tax Ratio

5.11%

Dividend Payout Ratio

100.97%

Pledged Shares

Institutional Holding

18.05%

ROCE (avg)

21.87%

ROE (avg)

21.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.83

EV to EBIT

10.28

EV to EBITDA

5.70

EV to Capital Employed

1.68

EV to Sales

1.58

PEG Ratio

Dividend Yield

ROCE (Latest)

16.35%

ROE (Latest)

16.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 153.17%

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 675.07 MM

NET PROFIT(HY)

At USD 148.3 MM has Grown at -39.56%

ROCE(HY)

Lowest at 12.59%

RAW MATERIAL COST(Y)

Grown by 14.92% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 23.48 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.23 times

Here's what is working for Alliance Resource Partners LP

Dividend Payout Ratio

Highest at 153.17%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Alliance Resource Partners LP

Net Profit

At USD 148.3 MM has Grown at -39.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 675.07 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 23.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 11.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 14.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales