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 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
Arch Resources Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Arch 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.
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?
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 Compensation | 17.52 M | 21.99 M | 25.29 M | 22.95 M | Net Cash Flow from Operations | 417.96 M | 419.71 M | 482.67 M | 492.21 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 Margin | 10.84 |
| EBITDA Margin | 0.18 |
| Gross Margin | 0.17 |
| Profit Margin | 0.0946 |
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.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
