Alliance Resource Partners, L.P. - Common Limited Partnership Interests (ARLP) Company Bio
Alliance Resource Partners LP is a diversified producer and marketer of coal to major United States utilities and industrial users. The company's mines are in Illinois, Indiana, Kentucky, Maryland and West Virginia. The company was founded in 1971 and is based in Tulsa, Oklahoma.
ARLP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ARLP, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Alliance Resource Partners Lp ranked in the 41th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Alliance Resource Partners Lp, consider:
Interest coverage, a measure of earnings relative to interest payments, is -1.95 -- which is good for besting just 15.31% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
49% of the company's capital comes from equity, which is greater than only 19.46% of stocks in our cash flow based forecasting set.
Alliance Resource Partners Lp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 23.89% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ARLP, try NUE, CCF, TECK, HL, and NRP.
Alliance Resource Partners, L.P. (NASDAQ: ARLP) will report its fourth quarter 2020 financial results before the market opens on Monday, February 1, 2021. Alliance management will discuss these results during a conference call beginning at 10:00 a.m. Eastern that same day.
In this article we will take a look at whether hedge funds think Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get […]