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Alpha Metallurgical Resources (AMR)
NYSE:AMR
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Alpha Metallurgical Resources
(NYSE:AMR)
60Neutral
Positive Factors
Financial Performance
AMR reported 4Q adjusted EBITDA of $53M, beating the consensus estimate and driven by lower expenses.
Negative Factors
Market Demand
Revenues fell short of expectation as shipments of 4.1M tons were below estimates and average realized price/ton missed the forecast due to weak global steel demand.
Sales Guidance
Weather and market headwinds have driven sales guidance lower, prompting a reduction in full-year met shipment guidance by 0.5M tons and an increase in cost/ton range.
Alpha Metallurgical Resources (AMR) vs. S&P 500 (SPY)
Market Cap
$1.65B
Dividend Yield0.36%
Average Volume (3M)374.07K
Price to Earnings (P/E)8.9
Beta (1Y)1.13
Revenue Growth-14.81%
EPS Growth-71.49%
CountryUS
Employees4,040
SectorBasic Materials
Sector Strength59
IndustryCoal
Share Statistics
EPS (TTM)14.21
Shares Outstanding13,052,684
10 Day Avg. Volume342,270
30 Day Avg. Volume374,066
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.55
Price to Cash Flow (P/CF)7.30
P/FCF Ratio7.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Alpha Metallurgical Resources Business Overview & Revenue Model
Company DescriptionAlpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. As of December 31, 2021, it operated twenty active mines and eight coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in February 2021. Alpha Metallurgical Resources, Inc. was incorporated in 2016 and is headquartered in Bristol, Tennessee.
How the Company Makes MoneyAlpha Metallurgical Resources makes money primarily through the sale of metallurgical coal, which is an essential component in the steel production process. The company's revenue model is centered on mining operations that extract coal from its reserves, which is then processed and sold to steel manufacturers. Key revenue streams for AMR include long-term supply contracts with major steel producers and spot market sales, depending on market conditions. Additionally, the company benefits from strategic partnerships and logistical capabilities that facilitate efficient transportation and delivery of coal to its customers. Factors such as coal quality, market demand, and global steel production trends significantly influence AMR's earnings.
Alpha Metallurgical Resources Financial Statement Overview
Summary
Alpha Metallurgical Resources shows a strong financial foundation with notable revenue growth in past years and effective cost management. Despite recent declines in profitability and cash flow, the company maintains a low leverage and substantial equity, reflecting financial stability.Income Statement
Alpha Metallurgical Resources has experienced a fluctuating but generally strong revenue performance, with significant growth in 2021 and a decline in 2022 and 2023. The gross profit margin has improved remarkably over the years, indicating efficient cost management. However, the net profit margin has decreased in the latest year, reflecting challenges in sustaining profitability at previous levels. The EBIT and EBITDA margins show a similar trend, with a notable drop in EBIT, suggesting increased operational costs or reduced revenue efficiency.75
Positive
Balance Sheet
The company maintains a robust balance sheet with a high stockholders' equity and low debt levels, as evidenced by the low debt-to-equity ratio. The equity ratio is strong, indicating a solid capital structure. Return on equity has decreased, implying challenges in maintaining profitability relative to shareholder investments. Overall, the balance sheet reflects financial stability and a conservative approach to leverage.80
Positive
Cash Flow
Cash flow analysis reveals a declining trend in free cash flow over recent years, highlighting potential challenges in generating cash from operations. The operating cash flow to net income ratio remains strong, indicating efficient conversion of profits into cash. However, a decrease in free cash flow to net income ratio suggests increased capital expenditures or reduced cash conversion efficiency. Despite these challenges, the company maintains a healthy cash position.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.96B | 3.47B | 4.10B | 2.26B | 1.42B | Gross Profit |
| 306.60M | 969.89M | 1.69B | 455.55M | -13.92M | EBIT |
| 227.85M | 863.09M | 1.58B | 357.14M | -93.98M | EBITDA |
| 413.64M | 1.02B | 1.73B | 511.66M | 6.50M | Net Income Common Stockholders |
| 187.58M | 721.96M | 1.45B | 288.79M | -241.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 481.58M | 268.21M | 347.96M | 81.21M | 139.23M | Total Assets |
| 2.44B | 2.41B | 2.31B | 1.86B | 1.68B | Total Debt |
| 5.78M | 14.41M | 10.97M | 448.55M | 582.53M | Net Debt |
| -475.79M | -253.79M | -290.93M | 367.34M | 443.30M | Total Liabilities |
| 789.21M | 832.13M | 882.72M | 1.31B | 1.48B | Stockholders Equity |
| 1.65B | 1.57B | 1.43B | 546.91M | 200.10M |
| Cash Flow | Free Cash Flow | |||
| 381.07M | 605.79M | 1.32B | 91.64M | -24.75M | Operating Cash Flow |
| 579.92M | 851.16M | 1.48B | 174.94M | 129.24M | Investing Cash Flow |
| -230.99M | -166.00M | -329.36M | -89.86M | -209.97M | Financing Cash Flow |
| -128.90M | -656.43M | -981.87M | -147.04M | -22.38M |
Alpha Metallurgical Resources Technical Analysis
Negative
126.49
Price Trends
158.32
Negative
189.79
Negative
220.41
Negative
Market Momentum
-8.29
Negative
34.83
Neutral
58.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMR, the sentiment is Negative. The current price of 126.49 is below the 20-day moving average (MA) of 130.86, below the 50-day MA of 158.32, and below the 200-day MA of 220.41, indicating a bearish trend. The MACD of -8.29 indicates Negative momentum. The RSI at 34.83 is Neutral, neither overbought nor oversold. The STOCH value of 58.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMR.
Alpha Metallurgical Resources Risk Analysis
Alpha Metallurgical Resources disclosed 51 risk factors in its most recent earnings report. Alpha Metallurgical Resources reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alpha Metallurgical Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.42B | 9.61 | 19.34% | 10.50% | -4.60% | -42.35% | |
74 Outperform | $4.12B | 8.02 | 19.67% | 0.65% | -13.20% | -51.56% | |
72 Outperform | $2.44B | 14.16 | 12.64% | 0.74% | -17.03% | -78.54% | |
72 Outperform | $1.67B | 5.08 | 10.41% | 2.19% | -14.50% | -46.36% | |
69 Neutral | $2.55B | 10.15 | 12.64% | 0.66% | -9.10% | -47.93% | |
60 Neutral | $1.65B | 8.90 | 11.64% | 0.36% | -14.81% | -71.49% | |
47 Neutral | $2.66B | -3.14 | -22.17% | 3.33% | 3.73% | -29.29% |
* Basic Materials Sector Average
Performance Comparison
AMR
Alpha Metallurgical Resources
126.49
-198.68
-61.10%
ARLP
Alliance Resource
26.66
8.64
47.95%
ARCH
Arch Resources
134.83
-22.98
-14.56%
HCC
Warrior Met Coal
48.59
-11.66
-19.35%
BTU
Peabody Energy Comm
13.72
-10.10
-42.40%
CNR
Core Natural Resources
77.09
-4.95
-6.03%
Alpha Metallurgical Resources Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -14.86% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant operational achievements in safety and liquidity, but these were overshadowed by challenges such as deteriorating market conditions, adverse weather impacts, and increased costs. The company maintained a strong financial position, yet the outlook is cautious due to ongoing market uncertainties.Highlights
Record Safety Metrics
Alpha Metallurgical Resources achieved record-setting safety metrics for the year, including a total reportable incident rate (TRR) that consistently performed favorably and back-to-back company records for this safety metric.
Strong Liquidity Position
The company maintained a strong liquidity position with $481.6 million in unrestricted cash and total liquidity of $519.4 million, up from $507 million at the end of the third quarter.
Best in Class Awards
Several operations within the company were recognized with the David J. Stetson Best in Class Awards for excellence in safety, environmental stewardship, and productivity.
Environmental Compliance
Alpha Metallurgical Resources maintained a 99.9% water quality compliance in 2024, highlighting their commitment to environmental stewardship.
Lowlights
Deteriorating Market Conditions
The metallurgical coal market conditions have been negatively impacted by weak global steel demand, leading to a decrease in segment realizations and pricing indices by at least 30%.
Weather-Related Challenges
Operations faced significant challenges due to extreme weather conditions, including power outages, snow, and flooding, which contributed to increased costs and reduced shipment volumes.
Increased Costs and Decreased Realizations
The company reported a decrease in net segment realizations, with a drop in the average realization for metallurgical sales from $136.35 per ton in Q3 to $132.63 per ton in Q4. Additionally, SG&A expenses increased, and CapEx rose to $42.7 million from $31.5 million in Q3.
Reduction in Shipment Guidance
Alpha Metallurgical Resources reduced its metallurgical shipment guidance for the year by 500,000 tons, and increased the high end of its met cost of coal sales guidance.
Company Guidance
During the Alpha Metallurgical Resources Fourth Quarter 2024 Results Conference Call, the company provided guidance indicating a reduction in their annual metallurgical shipment volume by 500,000 tons, now ranging between 14.5 million to 15.5 million tons. This adjustment is primarily due to adverse weather conditions that have affected production and shipment capabilities. Additionally, Alpha increased the high end of their cost of coal sales guidance to $110 per ton, up from the previous $108. The company has committed 32% of its metallurgical tonnage at an average price of $143.81 per ton, with 56% committed but not priced. Despite current challenges, Alpha is well-capitalized and continues to explore potential M&A opportunities to strengthen their operations.Alpha Metallurgical Resources Corporate Events
Business Operations and StrategyFinancial Disclosures
Alpha Metallurgical Resources Leads in U.S. Coal Production
Positive
Feb 28, 2025
In 2024, Alpha Metallurgical Resources sold 17.1 million tons of coal and achieved an adjusted EBITDA of $408 million, solidifying its position as the top U.S. producer of metallurgical coal. The company emphasizes safety and environmental responsibility, boasting a lower incident rate and numerous awards for safety and environmental compliance. This focus on operational excellence and sustainability is crucial for maintaining its competitive edge in the global coal market.
Executive/Board ChangesBusiness Operations and Strategy
Alpha Metallurgical Secures Executive Leadership Through 2028
Positive
Jan 31, 2025
In January 2025, Alpha Metallurgical Resources, Inc. took significant steps to ensure leadership stability by amending and establishing new employment agreements with its executive officers. These agreements, effective as of January 31, 2025, secure the tenure of key executives like CEO C. Andrew Eidson and others until 2028, with provisions for automatic renewal. The agreements provide competitive salaries, performance-based bonuses, and severance benefits, which are expected to enhance leadership retention and reinforce the company’s strategic priorities, potentially impacting its operational stability and stakeholder confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.