With a price/earnings ratio of 1.24, Alliance Resource Partners Lp P/E ratio is greater than that of about only 1.93% of stocks in our set with positive earnings.
Of note is the ratio of Alliance Resource Partners Lp's sales and general administrative expense to its total operating expenses; just 8.42% of US stocks have a lower such ratio.
Alliance Resource Partners Lp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 45.75%, greater than the shareholder yield of 91.2% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Alliance Resource Partners Lp, a group of peers worth examining would be CCR, PDCE, SLCA, BTU, and ETM.
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 73th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 370.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Alliance Resource Partners Lp ended up being:
34% of the company's capital comes from equity, which is greater than only 21.81% of stocks in our cash flow based forecasting set.
Alliance Resource Partners Lp's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 2.02% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than merely 21.49% of stocks in its sector (Basic Materials).
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 ICL, POL, CE, IAG, and PGTI.