Arch Resources Story

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ARCH -- USA Stock  

USD 50.03  6.78  11.93%

As many millenniums are excited about energy space, it is only fair to concentrate on Arch Coal. We will evaluate why we are still confident in anticipation of a recovery. Is Arch Coal valuation justified? I am going to cover the entity perspective on valuation to give you a better outlook on taking a position in it.
Published over two weeks ago
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The company currently holds 423.15 M in liabilities with Debt to Equity (D/E) ratio of 1.16, which is about average as compared to similar companies. Arch Coal has a current ratio of 2.08, suggesting that it is liquid enough and is able to pay its financial obligations when due. Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on Arch Coal. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
We determine the current worth of Arch Resources using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arch Resources based exclusively on its fundamental and basic technical indicators. By analyzing Arch Resources's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Arch Resources's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Arch Resources. We calculate exposure to Arch Resources's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Arch Resources's related companies.

Arch Resources Investment Alerts

Arch Resources investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Arch Resources performance across your portfolios.Please check all investment alerts for Arch Resources

Arch Resources Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Arch Resources value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Arch Resources competition to find correlations between indicators driving the intrinsic value of Arch Resources.

How Arch Resources utilizes its cash?

To perform a cash flow analysis of Arch Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Arch Resources is receiving and how much cash it distributes out in a given period. The Arch Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Arch Resources Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 61.11 Million

Breaking down Arch Resources Indicators

The entity reported the previous year's revenue of 1.64 B. Net Loss for the year was (274.64 M) with profit before overhead, payroll, taxes, and interest of 421.33 M.
 2018 2019 2020 2021 (projected)
Share Based Compensation17.52 M21.99 M25.29 M22.95 M
Net Cash Flow from Operations417.96 M419.71 M482.67 M492.21 M

Margins Breakdown

Arch Coal profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Arch Coal itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Arch Coal profit margins.
Operating Margin10.84
EBITDA Margin0.18
Gross Margin0.17
Profit Margin0.0946

Arch Coal Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 5 years. The current value of Arch Coal Earnings Before Interest Taxes and Depreciation Amortization USD is 434,691,184. Arch Coal Average Assets is nearly stable at the moment. Additionally, Arch Coal Earnings Before Interest Taxes and Depreciation Amortization EBITDA is nearly stable at the moment. Arch Coal Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 5 years. Arch Coal Average Assets is nearly stable at the moment. Additionally, Arch Coal Earnings Before Interest Taxes and Depreciation Amortization EBITDA is nearly stable at the moment.

Will Arch Coal current rise continue?

The maximum drawdown is down to 17.69 as of today. Arch Coal shows above-average downside volatility for the selected time horizon. We advise investors to inspect Arch Coal further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Arch Coal future alpha.

Our Final Perspective on Arch Coal

While some firms under the thermal coal industry are still a bit expensive, Arch Coal may offer a potential longer-term growth to stockholders. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Arch Coal as the current risk-reward utility is not appealing enough. 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 Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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