Alliance Resource Partners LP (ARLP) Stock Analysis
Verdict: HOLD
A 12.8% yield backed by $380M FCF provides steady income, but top-line revenue contraction limits multi-year expansion.
Investment score: 62/100
Analysis as of
Is Alliance Resource Partners LP stock worth reviewing? The TradeMates thesis
The model evaluates ARLP as a stable income generator with reliable cash flow, constrained by long-term secular headwinds in thermal coal.
7-factor investment score
- Valuation: 70/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 50/100 (weight 15%)
- Earnings Quality: 52/100 (weight 15%)
- Insider Sentiment: 55/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 68/100 (weight 15%)
Alliance Resource Partners LP opportunities and risks
What speaks for ARLP
- Robust Free Cash Flow Supporting High Yield
What speaks against ARLP
- Secular Contraction in Thermal Coal Revenue
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ARLP | 12.6x | 1.5x | 5.9x | 24.4% | 12.3% | 10.5% |
| CNR | 46.9x | 1.1x | 6.5x | 2.3% | 2.3% | 5.5% |
| BTU | n/a | 0.8x | 11.5x | 2.2% | -4.6% | 13.4% |
| UUUU | n/a | 28.3x | n/a | 43.2% | -77.3% | -3.7% |
| LEU | 57.8x | 5.8x | 28.3x | 23.3% | 10.2% | -8.1% |
| NRP | 13.9x | 7.5x | 10.6x | 81.6% | 54.0% | 11.0% |
| Peer median | 13.9x | 5.8x | 10.6x | 23.3% | 2.3% | 5.5% |
Frequently asked questions about Alliance Resource Partners LP (ARLP)
Is ARLP stock a good investment?
The TradeMates model rates Alliance Resource Partners LP as HOLD with an investment score of 62/100. The model evaluates ARLP as a stable income generator with reliable cash flow, constrained by long-term secular headwinds in thermal coal. This is algorithmic model output, not personal investment advice.
Is ARLP stock a buy?
The TradeMates model verdict for ARLP is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.