Alliance Resource (ARLP) AI Stock Analysis

• Market Cap: $3.18B
• Dividend Yield: 10.4%
• Average Volume (3M): 311.55K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.33
• Revenue Growth: -9.45%
• EPS Growth: -46.17%
• Country: US
• Employees: 3,653
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 0.73
• Shares Outstanding: 128,428,020
• 10 Day Avg. Volume: 330,780
• 30 Day Avg. Volume: 311,549
• PEG Ratio: -0.22
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 8.99
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 8.79
• Enterprise Value/Ebitda: 5.97
• 1Y Price Target: $31.00
• Price Target Upside: 24.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.43
• Revenue Forecast (FY): $2.21B

• Rating: 72 Outperform
• Price Target: $27.00 ▲(8.00% Upside)

Alliance Resource's overall stock score is driven by its strong financial performance and attractive valuation, despite mixed technical indicators and earnings call results. The company's robust profitability, solid balance sheet, and high dividend yield are significant strengths, while the neutral technical outlook and mixed earnings call results present moderate risks.

Positive Factors

Strong Cash Flow Generation

Robust free cash flow generation indicates strong operational efficiency and provides the company with flexibility for future investments and debt reduction.

Operational Efficiency

Improved EBITDA reflects effective cost management and operational efficiency, enhancing the company's profitability and competitive position.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and the ability to withstand market fluctuations, supporting long-term growth.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining sales momentum, which could impact future profitability and market share.

Decline in Coal Sales Price

Falling coal prices can pressure margins and reduce revenue, affecting the company's ability to invest in growth opportunities.

Appalachia Sales Volume Decline

Decreased sales volumes in Appalachia suggest operational challenges or reduced demand, potentially impacting regional market presence.

Alliance Resource Business Overview & Revenue Model

Company Description

Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, it leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns mineral and royalty interests in approximately 1.5 million gross acres of oil and gas producing regions primarily in the Permian, Anadarko, and Williston Basins. Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software. As of December 31, 2021, it had approximately 547.1 million tons of proven and probable coal mineral reserves, as well as 1.17 billion tons of measured, indicated, and inferred coal mineral resources in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Alliance Resource generates revenue primarily through the sale of coal, which is its core product. The company operates several mining complexes that produce various grades of coal, catering to both domestic and international markets. Key revenue streams include long-term coal supply agreements with utility companies and industrial customers, which provide stable cash flow. Additionally, ARLP benefits from spot market sales and export opportunities, especially in regions where demand for metallurgical coal is high. The company's profitability is also influenced by coal pricing dynamics, production costs, and demand fluctuations in the energy sector. Strategic partnerships with transportation and logistics companies further enhance its distribution capabilities, ensuring efficient delivery of its products to customers.

Alliance Resource Financial Statement Overview

Summary

Alliance Resource demonstrates strong operational efficiency and cash flow health, with robust profitability margins. The balance sheet shows low leverage and a strong equity position, despite minor asset decline. Key challenges include recent revenue contraction and negative free cash flow growth, which may impact future financial resilience.

Income Statement

Alliance Resource shows a strong gross profit margin of 17.93% and a net profit margin of 10.30% in the TTM (Trailing-Twelve-Months). EBIT and EBITDA margins are also solid at 14.42% and 25.83%, respectively. However, revenue has declined by 6.42% between the last annual report and the TTM, indicating potential revenue growth challenges.

Balance Sheet

The company's debt-to-equity ratio is 0.27, which is relatively low and indicates good leverage management. Return on equity (ROE) stands at 13.16%, showing decent profitability. The equity ratio is strong at 62.50%, reflecting a robust capital structure. However, a slight decrease in total assets compared to the previous year may need monitoring.

Cash Flow

Alliance Resource has a strong operating cash flow to net income ratio of 2.86 and a free cash flow to net income ratio of 1.35, indicating excellent cash generation capabilities. The free cash flow growth rate is negative at -15.10% from the last annual report to the TTM, which could suggest capital expenditure pressures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	2.45B	2.57B	2.42B	1.57B	1.33B
Gross Profit	414.43M	507.48M	751.49M	741.20M	289.36M	133.96M
EBITDA	610.44M	702.17M	948.52M	956.14M	483.47M	234.02M
Net Income	244.83M	360.86M	630.12M	586.20M	182.77M	-129.05M
Balance Sheet
Total Assets	2.91B	2.92B	2.79B	2.73B	2.16B	2.17B
Cash, Cash Equivalents and Short-Term Investments	94.48M	136.96M	59.81M	296.02M	122.40M	55.57M
Total Debt	471.55M	486.80M	350.82M	434.31M	450.66M	609.78M
Total Liabilities	1.08B	1.06B	929.83M	1.02B	933.34M	1.09B
Stockholders Equity	1.81B	1.83B	1.83B	1.61B	1.21B	1.06B
Cash Flow
Free Cash Flow	364.00M	374.39M	362.08M	515.96M	272.20M	280.53M
Operating Cash Flow	675.68M	803.13M	830.64M	802.35M	426.14M	401.63M
Investing Cash Flow	-336.21M	-440.66M	-559.73M	-403.34M	-143.63M	-126.11M
Financing Cash Flow	-422.49M	-285.32M	-507.12M	-225.39M	-215.69M	-256.43M

Alliance Resource Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARLP, the sentiment is Positive. The current price of 25 is above the 20-day moving average (MA) of 24.48, above the 50-day MA of 24.14, and below the 200-day MA of 25.04, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 78.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARLP.

Alliance Resource Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	72 Outperform	$3.18B	13.03	13.11%	10.40%	-9.45%	-46.17%
NRP	67 Neutral	$1.38B	9.61	26.19%	4.01%	-14.79%	-17.10%
HCC	66 Neutral	$3.47B	98.94	1.67%	0.39%	-23.25%	-90.78%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BTU	61 Neutral	$3.53B	-102.59	-0.87%	1.16%	-7.21%	―
AMR	56 Neutral	$2.27B	―	-2.29%	―	-29.63%	-108.26%
METC	45 Neutral	$1.51B	-40.81	-7.40%	2.01%	-16.99%	-184.02%

Alliance Resource Corporate Events

Alliance Resource Partners Reports Strong Q3 2025 Results

Alliance Resource Partners, L.P. is a diversified energy company and the second largest coal producer in the eastern United States, providing energy to utilities and industrial users while also generating income from mineral interests in coal and oil & gas regions.

Alliance Resource Partners’ Earnings Call: Mixed Results and Growth Potential

The recent earnings call for Alliance Resource Partners revealed a mixed performance, highlighting both operational improvements and challenges. While the company experienced strong operational growth and increased coal sales volumes, it faced decreased revenue and sales prices. Despite these hurdles, strategic investments and operational efficiencies have positioned Alliance for potential growth in the future.

Alliance Resource Subsidiary Signs Agreement with Saminco

On October 10, 2025, CR Services, LLC, a subsidiary of Alliance Resource Partners, L.P., entered into a Master Supply and Services Agreement with Saminco Solutions LLC. This agreement allows CR Services to purchase various electrical and mechanical products and services from Saminco Solutions under favorable terms. The agreement, which has an initial term of five years with automatic renewals, includes provisions for pricing, termination, and warranty obligations. The deal is a related party transaction due to the involvement of Joseph W. Craft III, who has significant control and ownership in Alliance Resource Partners and Saminco Solutions. The terms were approved by the independent directors of the board, ensuring compliance and transparency.

The most recent analyst rating on (ARLP) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Alliance Resource stock, see the ARLP Stock Forecast page.