Arch Coal Story

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ARCH -- USA Stock  

USD 46.54  0.91  1.99%

Arch Coal Earnings before Tax are most likely to increase significantly in the upcoming years. The last year's value of Earnings before Tax was reported at 234.05 Million. The current Enterprise Value is estimated to increase to about 1.3 B, while Revenue Per Employee is projected to decrease to roughly 581.2 K. In this article, we will concentrate on Arch Coal as a potential position in addition to your existing holdings. We will examine why it could be a game-changer for Arch Coal stockholders.
Published over a month ago
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Are Arch Coal (NYSE:ARCH) stockholders starting to hold back?
The company has a beta of 1.9128. Let's try to break down what Arch Coal's beta means in this case. Arch Coal returns are very sensitive to returns on the market. As the market goes up or down, Arch Coal is expected to follow. The beta indicator helps investors understand whether Arch Coal moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Arch Coal deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Arch Coal. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Arch Coal


How important is Arch Coal's Liquidity

Arch Coal financial leverage refers to using borrowed capital as a funding source to finance Arch Coal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arch Coal 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. Please check the breakdown between Arch Coal's total debt and its cash.

How Arch Coal utilizes its cash?

To perform a cash flow analysis of Arch Coal, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Arch Coal is receiving and how much cash it distributes out in a given period. The Arch Coal cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Arch Coal Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 419.71 Million

Breaking down Arch Coal Indicators

Arch Coal exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Arch Coal individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Arch Coal future systematic risk.

Margin Breakdown

Operating Margin12.05
EBITDA Margin0.18
Gross Margin0.18
Profit Margin0.1

Arch Coal is epected to finish above $29 in August

The value at risk is down to -7.5 as of today. Arch Coal exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Arch Coal individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Arch Coal future systematic risk.

The Current Takeaway on Arch Coal Investment

While some companies under the thermal coal industry are still a bit expensive, Arch Coal may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Arch Coal valuation and our trade advice on Arch Coal is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Arch Coal.

About Contributor

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 Raphi Shpitalnik do not own shares of Arch Coal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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