Margin Breakdown
| Operating Margin | 12.05 | |
| EBITDA Margin | 0.18 | |
| Gross Margin | 0.18 | |
| Profit Margin | 0.1 |
Are Arch Coal (NYSE:ARCH) stockholders starting to hold back?
 | By Raphi Shpitalnik | Macroaxis Story |
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.
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Reviewed by Ellen Johnson
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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Arch Resources. Your research has to be compared to or analyzed against Arch Resources' peers to derive any actionable benefits. When done correctly, Arch Resources' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Arch Resources.
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 Resources. 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 Resources
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Arch Resources' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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.
Is Arch Resources valued properly by the market?
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.
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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 Raphi Shpitalnik do not own shares of Arch Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.