| 2010 | 2018 | 2019 | 2020 (projected) | Share Based Compensation | 10.44 M | 17.52 M | 21.99 M | 21.21 M | Net Cash Flow from Operations | 396.47 M | 417.96 M | 419.71 M | 459.07 M |
Will Arch Coal continue to drop in August?
 | By Ellen Johnson | Macroaxis Story |
Arch Coal is currently generating 0.2194% in daily expected returns and assumes 5.267% risk (volatility on return distribution) over the 60 days horizon. While many risk-averse stockholders are getting carried away by overanalyzing energy space, it is reasonable to concentrate on Arch Coal. We will examine why it could be a different year for Arch Coal shareholders.
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Reviewed by Michael Smolkin
Arch Coal currently holds roughly 234.21 M in cash with 322.7 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 15.47. On a scale of 0 to 100, Arch Coal holds a performance score of 2. The firm shows a Beta (market volatility) of 1.9128, which signifies a somewhat significant risk relative to the market. Let's try to break down what Arch Coal's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Arch Coal will likely underperform. Although it is extremely important to respect Arch Coal historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Arch Coal technical indicators, you can presently evaluate if the expected return of 0.22% will be sustainable into the future. Please makes use of Arch Coal sortino ratio, semi variance, and the relationship between the information ratio and value at risk to make a quick decision on whether Arch Coal price patterns will revert. Volatility is a rate at which the price of Arch Resources or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Arch Resources may increase or decrease. In other words, similar to Arch's beta indicator, it measures the risk of Arch Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Arch Resources fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Arch Resources's Liquidity
Arch Resources financial leverage refers to using borrowed capital as a funding source to finance Arch Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arch Resources financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Arch Resources' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Arch Resources' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Arch Resources's total debt and its cash.
Arch Resources Gross Profit
Arch Resources Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arch Resources previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Arch Resources Gross Profit growth over the last 10 years. Please check Arch Resources' gross profit and other fundamental indicators for more details.
Arch Resources Volatility Drivers
Arch Resources unsystematic risk is unique to Arch Resources and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Arch Resources you can also buy Warrior Met Coal. You can also mitigate this risk by investing in the energy sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Arch Resources important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Arch Resources income statement and balance sheet. Here are more details about Arch volatility.Click cells to compare fundamentals
Is Arch Resources valued properly by the market?
The company reported the previous year's revenue of 2.12 B. Net Income was 135.76 M with profit before overhead, payroll, taxes, and interest of 421.33 M.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Arch Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.