Alliance Story

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ARLP -- USA Stock  

USD 3.18  0.23  7.80%

It looks like Peabody Energy will be up for a correction way faster as its share price whent up 10.00% today to Alliance Resource's 4.6296%. As many rational traders are trying to avoid energy space, it makes sense to recap Alliance Resource Partners a little further and understand how it stands against Peabody Energy and other similar entities. We are going to focus on some of the competitive aspects of both Alliance and Peabody.
Published over a month ago
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Should we be obtaining Peabody or Alliance Resource?
By analyzing existing basic indicators between Alliance Resource and Peabody, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Peabody with a short position in Alliance Resource. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alliance Resource has an asset utilization ratio of 75.81 percent. This suggests that the company is making $0.76 for each dollar of assets. An increasing asset utilization means that Alliance Resource Partners is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Alliance or Peabody is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Alliance Resource dividends

A dividend is the distribution of a portion of Alliance Resource earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Alliance Resource dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Alliance one year expected dividend income is about $1.02 per share.
Alliance Resource Preferred Dividends Income Statement Impact is very stable at the moment as compared to the past year. Alliance Resource reported last year Preferred Dividends Income Statement Impact of 1.4 Million. As of 22nd of September 2020, Dividends per Basic Common Share is likely to grow to 2.31, while Payment of Dividends and Other Cash Distributions is likely to drop (300.4 M).
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact1.4 M1.4 M
Payment of Dividends and Other Cash Distributions-278.4 M-300.4 M
Dividend Yield 0.20  0.16 
Dividends per Basic Common Share 2.15  2.31 
Investing in dividend-paying stocks, such as Alliance Resource Partners is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Alliance Resource must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Alliance Resource. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Alliance Resource's Liquidity

Alliance Resource financial leverage refers to using borrowed capital as a funding source to finance Alliance Resource Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alliance Resource 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 Alliance Resource's total debt and its cash.

Correlation Between Alliance and Peabody Energy

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Alliance Resource together with similar or unrelated positions with a negative correlation. For example, you can also add Peabody Energy to your portfolio. If Peabody Energy is not perfectly correlated to Alliance Resource it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Alliance Resource for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between ARLP and BTU for more information.

Breaking down Alliance Resource Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Alliance Resource revenue. Based on the latest financial disclosure, Alliance Resource Partners reported 1.79 B of revenue. This is 96.36% lower than that of the Energy sector and significantly higher than that of the Thermal Coal industry. The revenue for all United States stocks is 81.03% higher than that of Alliance Resource. As for Peabody Energy we see revenue of 4.22 B, which is much higher than that of the Thermal Coal

Alliance1.79 Billion
Sector0.0
Peabody4.22 Billion
1.8 B
Alliance
Sector
4.2 B
Peabody

Will Alliance Resource growth be justifiable after the roll up?

Recent Risk Adjusted Performance is up to 0.05. Price may decline again. Alliance Resource Partners exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Alliance Resource Partners individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Alliance Resource future systematic risk.

Our Final Perspective on Alliance Resource

Although many other companies under the thermal coal industry are still a bit expensive, Alliance Resource may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current Alliance valuation and our trade advice on Alliance Resource 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 Alliance Resource.

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 Alliance Resource Partners. Please refer to our Terms of Use for any information regarding our disclosure principles.

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