📊 ARLP Key Takeaways
Is Alliance Resource Partners LP (ARLP) a Good Investment?
Alliance Resource Partners faces structural headwinds with declining revenue (-10.4% YoY) and net income compression while operating in a secularly declining coal industry. Weak interest coverage of 2.8x combined with meager free cash flow generation ($9.8M) relative to substantial debt ($426.1M) raises solvency concerns, and razor-thin operating margins (4.2%) offer minimal protection against downturns.
Alliance Resource Partners shows strong underlying fundamentals with solid operating and net margins, robust free cash flow generation, and very strong interest coverage. While revenue declined year over year, earnings held up relatively well, suggesting resilient profitability and disciplined cost control, though growth quality remains constrained by cyclical end-market exposure.
Alliance Resource Partners LP Key Strengths (ARLP)
- Positive operating cash flow of $105.5M demonstrates ongoing operational cash generation capability
- Current ratio of 1.46x provides adequate short-term liquidity cushion for operations
- Continuing to generate positive net income ($9.1M) despite cyclical industry pressures
- Strong free cash flow generation with a 17.7% FCF margin and $651.14M in operating cash flow
- Healthy financial position supported by a 2.10x current ratio and 49.7x interest coverage
- Profitability remains solid despite lower revenue, with 17.6% operating margin and only a modest 1.9% decline in net income
ARLP Stock Risks: Alliance Resource Partners LP Investment Risks
- Revenue declining 10.4% YoY consistent with coal sector secular decline and energy transition headwinds
- Dangerously low interest coverage ratio of 2.8x indicates limited ability to service debt during economic stress
- Free cash flow of $9.8M is critically insufficient relative to $426.1M long-term debt burden, raising solvency concerns
- Razor-thin profit margins (1.8% net, 4.2% operating) leave virtually no room for operational deterioration
- Bituminous coal mining faces structural decline from energy transition and environmental regulation
- Severely poor capital efficiency evidenced by ROA of 0.3%
- Revenue contraction of 10.4% indicates demand or pricing pressure and raises questions about near-term growth durability
- Coal-focused operations face structural and regulatory headwinds that can pressure long-term growth quality
- Cash balance is moderate relative to total liabilities and long-term debt, leaving less flexibility if market conditions weaken sharply
Key Metrics to Watch
- Interest Coverage Ratio - critical debt serviceability indicator; must improve above 3.5x
- Free Cash Flow and Debt Service Coverage Ratio - ability to delever from current unsustainable trajectory
- Revenue and Operating Income Trends - further deterioration could breach profitability sustainability
- Revenue trend and operating margin stability
- Free cash flow after capital expenditures
Alliance Resource Partners LP (ARLP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.9% FCF margin may limit capital allocation flexibility.
ARLP Profit Margin, ROE & Profitability Analysis
ARLP vs Materials Sector: How Alliance Resource Partners LP Compares
How Alliance Resource Partners LP compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alliance Resource Partners LP Stock Overvalued? ARLP Valuation Analysis 2026
Based on fundamental analysis, Alliance Resource Partners LP has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alliance Resource Partners LP Balance Sheet: ARLP Debt, Cash & Liquidity
ARLP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alliance Resource Partners LP's revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion.
ARLP Revenue Growth, EPS Growth & YoY Performance
ARLP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $516.0M | $9.1M | N/A |
| Q3 2025 | $571.4M | $86.3M | N/A |
| Q2 2025 | $547.5M | $59.4M | N/A |
| Q1 2025 | $540.5M | $74.0M | N/A |
| Q3 2024 | $613.6M | $86.3M | N/A |
| Q2 2024 | $593.4M | $100.2M | N/A |
| Q1 2024 | $651.7M | $158.1M | N/A |
| Q3 2023 | $632.5M | $153.7M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alliance Resource Partners LP Dividends, Buybacks & Capital Allocation
ARLP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alliance Resource Partners LP (CIK: 0001086600)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARLP
What is the AI rating for ARLP?
Alliance Resource Partners LP (ARLP) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARLP's key strengths?
Claude: Positive operating cash flow of $105.5M demonstrates ongoing operational cash generation capability. Current ratio of 1.46x provides adequate short-term liquidity cushion for operations. ChatGPT: Strong free cash flow generation with a 17.7% FCF margin and $651.14M in operating cash flow. Healthy financial position supported by a 2.10x current ratio and 49.7x interest coverage.
What are the risks of investing in ARLP?
Claude: Revenue declining 10.4% YoY consistent with coal sector secular decline and energy transition headwinds. Dangerously low interest coverage ratio of 2.8x indicates limited ability to service debt during economic stress. ChatGPT: Revenue contraction of 10.4% indicates demand or pricing pressure and raises questions about near-term growth durability. Coal-focused operations face structural and regulatory headwinds that can pressure long-term growth quality.
What is ARLP's revenue and growth?
Alliance Resource Partners LP reported revenue of $516.0M.
Does ARLP pay dividends?
Alliance Resource Partners LP does not currently pay dividends.
Where can I find ARLP SEC filings?
Official SEC filings for Alliance Resource Partners LP (CIK: 0001086600) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARLP's EPS?
Alliance Resource Partners LP has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARLP's fundamental grade?
Based on our AI fundamental analysis in June 2026, Alliance Resource Partners LP has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ARLP stock overvalued or undervalued?
Valuation metrics for ARLP: ROE of N/A (sector avg: 14%), net margin of 1.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ARLP's AI grade for 2026?
Our dual AI analysis gives Alliance Resource Partners LP a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARLP's free cash flow?
Alliance Resource Partners LP's operating cash flow is $105.5M, with capital expenditures of $95.7M. FCF margin is 1.9%.
How does ARLP compare to other Materials stocks?
Vs Materials sector averages: Net margin 1.8% (avg: 10%), ROE N/A (avg: 14%), current ratio 1.46 (avg: 1.6).