Fact based stock research
Alliance Resource (NasdaqGS:ARLP)

US01877R1086

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Alliance Resource stock research in summary

arlp.com

ANALYSIS: With an Obermatt Combined Rank of 86 (better than 86% compared with investment alternatives), Alliance Resource (Coal & Consumable Fuels, USA) shares have much better financial characteristics than comparable stocks. Shares of Alliance Resource are a good value (attractively priced) with a consolidated Value Rank of 73 (better than 73% of alternatives), are safely financed (Safety Rank of 88, which means low debt burdens), but show below-average growth (Growth Rank of 47). ...read more

RECOMMENDATION: A Combined Rank of 86, is a strong buy recommendation based on Alliance Resource's financial characteristics. As the company Alliance Resource's key financial metrics exhibit good value (Obermatt Value Rank of 73) but low growth (Obermatt Growth Rank of 47) while being safely financed (Obermatt Safety Rank of 88), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 73% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	73
Growth Rank	47
Safety Rank	88
Combined Rank	86

Country	USA
Industry	Coal & Consumable Fuels
Index	Dividends USA, Sound Pay USA, NASDAQ
Size class	Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Alliance Resource

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	80	69	96	73
GROWTH
GROWTH	32	37	61	47
SAFETY
SAFETY	88	90	82	88
SENTIMENT
SENTIMENT	n/a	99	92	^new
360° VIEW
360° VIEW	n/a	100	100	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Alliance Resource is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	80	69	96	73
GROWTH
GROWTH	32	37	61	47
SAFETY
SAFETY	88	90	82	88
COMBINED
COMBINED	80	86	98	86

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Alliance Resource the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 73 (better than 73% compared with alternatives), Alliance Resource shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Alliance Resource. Price-to-Sales (P/S) is 57, which means that the stock price compared with what market professionals expect for future sales is lower than for 57% of comparable companies, indicating a good value concerning Alliance Resource's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 100 (dividends are expected to be higher than 100% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 64% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Alliance Resource to 36. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, is a buy recommendation based on Alliance Resource's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	72	70	75	57
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	1	95	67
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	46	62	52	36
DIVIDEND YIELD
DIVIDEND YIELD	74	95	98	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	80	69	96	73

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Alliance Resource; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), Alliance Resource shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Alliance Resource. Sales Growth has a below market rank of 26, which means that, currently, professionals expect the company to grow less than 74% of its competitors. The same is valid for Capital Growth, with a rank of 47, and Profit Growth, with a rank of 37. Currently, professionals expect the company to grow its profits less than 63% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 91, which means that the stock returns have recently been above 91% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Alliance Resource, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	16	29	23	26
PROFIT GROWTH
PROFIT GROWTH	4	60	78	37
CAPITAL GROWTH
CAPITAL GROWTH	n/a	25	71	47
STOCK RETURNS
STOCK RETURNS	94	75	51	91
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	32	37	61	47

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Alliance Resource.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 88 (better than 88% compared with alternatives) for 2024, the company Alliance Resource has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Alliance Resource is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Alliance Resource. Leverage is at 74, meaning the company has a below-average debt-to-equity ratio. It has less debt than 74% of its competitors. Refinancing is at a rank of 88, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 88% of its competitors. Finally, Liquidity is also good at a rank of 79, which means that the company generates more profit to service its debt than 79% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 88 (better than 88% compared with alternatives), Alliance Resource has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Alliance Resource but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	60	62	72	74
REFINANCING
REFINANCING	68	82	88	88
LIQUIDITY
LIQUIDITY	72	72	56	79
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	90	82	88

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Alliance Resource and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	76	100	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	99	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	84	81	^new
MARKET PULSE
MARKET PULSE	n/a	70	50	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	99	92	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Alliance Resource.
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