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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hallador Energy Co.

Alliance Resource Partners LP

NACCO Industries, Inc.

Warrior Met Coal, Inc.

CONSOL Energy, Inc.

Natural Resource Partners LP

Alpha Metallurgical Resources, Inc.

Arch Resources, Inc.

Ramaco Resources, Inc.

Peabody Energy Corp.

SunCoke Energy, 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 39.04%

With ROE of 18.75%, it has a very attractive valuation with a 1.92 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 8.10%, its profits have fallen by -5.6%

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.6% over the previous quarter and collectively hold 18.65% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

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, Medium Return

Absolute

Risk Adjusted

Volatility

Alliance Resource Partners LP

7.72%

0.65

24.04%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.57%

EBIT Growth (5y)

39.04%

EBIT to Interest (avg)

11.65

Debt to EBITDA (avg)

0.60

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.06

Tax Ratio

5.11%

Dividend Payout Ratio

107.28%

Pledged Shares

Institutional Holding

18.65%

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

1.92

EV to EBIT

10.15

EV to EBITDA

5.71

EV to Capital Employed

1.76

EV to Sales

1.78

PEG Ratio

Dividend Yield

ROCE (Latest)

17.34%

ROE (Latest)

18.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

10What is working for the Company

OPERATING PROFIT MARGIN(Q)

Highest at 32.42 %

RAW MATERIAL COST(Y)

Fallen by -113.37% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 14.22 times

PRE-TAX PROFIT(Q)

Highest at USD 105.61 MM

NET PROFIT(Q)

Highest at USD 100.37 MM

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 651.14 MM

NET SALES(Q)

Lowest at USD 535.51 MM

Here's what is working for Alliance Resource Partners LP

Operating Profit Margin

Highest at 32.42 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 105.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 105.61 MM has Grown at 40.56%

over average net sales of the previous four periods of USD 75.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 100.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 100.37 MM has Grown at 48.51%

over average net sales of the previous four periods of USD 67.59 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 14.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -113.37% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Operating Cash Flow

Lowest at USD 651.14 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)

Net Sales

Lowest at USD 535.51 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)