Fundamental analysis: Arch Resources, Inc. (ARCH)

Awarener score: 8.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Very poor) and growth (Very good), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

Business has been growing at a very good pace. It's been encouraging in relation to peer companies.
Arch Resources, Inc. business varies frequently, ups and downs are normal. It's risky. It looks mediocre against rivals.

Margins score: 7.0

ARCH profit margins -on goods and services sold- are usually sufficient. They stand well ranked against rival companies.
Business profit on sales tends to be very good. It's more than average in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain close to average when compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually good considering total sales, and remain encouraging in relation to rivals.
Total net profit tends to be good when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 2.3

Arch Resources, Inc. profit -on goods and services sold- has been growing at an extremely fast pace. It's been excellent in relation to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 8.0

ARCH managed to pay little to no income taxes on profits made in the past years. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.5

Arch Resources, Inc. usually gets huge returns on the resources it controls. It proves great when measured against peer firms.
The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.9

ARCH usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is below average when measured against industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved excellent in relation to similar firms.
The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks slightly worse than comparable companies.
The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains lacking compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks almost average when measured against competitors.

Balance Sheet score: 7.4

Arch Resources, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be a slight improvement compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks encouraging in relation to rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is somewhat worse than similar enterprises.
Usually, sales are on a month credit. It still ranks encouraging in relation to peers.
Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands well ranked against rival firms.
Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks top tier when measured against comparable enterprises.
Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks impressive in relation to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still better than most peer companies.

Valuation score: 8.8

Arch Resources, Inc. looks extremely cheap in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains rather normal in relation to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still great when measured against industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks extremely cheap. Possible reasons are that the market might be betting current earnings will be very hard to sustain through time, or that the company has very high fund needs, a weak financial position, or that earnings aren't representative. If that isn't the case, the stock price could be extremely attractive. It ranks top tier when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in good shape compared to rival firms.
The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still excellent in relation to peer companies.

Total score: 6.7

Company at a glance: Arch Resources, Inc. (ARCH)

Sector, industry: Energy, Thermal Coal

Market Cap: 2.06 billions

Revenues TTM: 3.73 billions

Arch Resources, Inc. produces and sells thermal and metallurgical coal from surface and underground mines. As of December 31, 2021, the company operated seven active mines. It also owned or controlled primarily through long-term leases approximately 28,292 acres of coal land in Ohio; 952 acres of coal land in Maryland; 10,095 acres of coal land in Virginia; 306,033 acres of coal land in West Virginia; 81,470 acres of coal land in Wyoming; 234,543 acres of coal land in Illinois; 33,047 acres of coal land in Kentucky; 362 acres of coal land in Montana; 248 acres of coal land in Pennsylvania; and 19,018 acres of coal land in Colorado, as well as smaller parcels of property in Alabama, Indiana, Washington, Arkansas, California, Utah, and Texas. The company sells its products to utility, industrial, and steel producers in the United States, Europe, Asia, Central and South America, and Africa. The company was formerly known as Arch Coal, Inc. and changed its name to Arch Resources, Inc. in May 2020. Arch Resources, Inc. was incorporated in 1969 and is headquartered in St. Louis, Missouri.