📊 ARLP Key Takeaways
Is Alliance Resource Partners LP (ARLP) a Good Investment?
ARLP demonstrates solid operational efficiency with strong cash generation (FCF margin 17.7%, OCF $651M) and exceptional interest coverage (49.7x), indicating financial stability in the coal sector. However, declining revenue (-10.4% YoY) and modest net income contraction (-1.9% YoY) signal headwinds in demand, warranting cautious positioning pending evidence of stabilization.
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.
Why Buy Alliance Resource Partners LP Stock? ARLP Key Strengths
- Strong free cash flow generation of $387.9M with 17.7% FCF margin demonstrates robust cash conversion despite sector challenges
- Excellent liquidity position with 2.10x current ratio and exceptional 49.7x interest coverage ratio providing financial flexibility
- Healthy operating margin of 17.6% and net margin of 14.2% show disciplined cost management and profitability despite revenue decline
- Modest long-term debt of $427.1M relative to $2.9B in assets indicates conservative capital structure
- 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% year-over-year reflects structural headwinds in coal demand due to energy transition and regulatory pressures
- Exposure to cyclical commodity (bituminous coal) with limited pricing power and long-term secular decline risks
- Cash equivalents of only $71.2M relative to $427.1M long-term debt provide limited cushion for potential business deterioration
- Net income contraction despite operational efficiency suggests margin compression or higher financing costs ahead
- 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
- Revenue trend stabilization or reacceleration - critical indicator of demand recovery in coal markets
- Free cash flow sustainability - monitor if declining revenue erodes cash generation capability
- Debt levels and refinancing needs - track long-term debt trajectory given commodity price volatility
- Operating margin expansion/compression - key metric for pricing power and cost control in challenged market
- Revenue trend and operating margin stability
- Free cash flow after capital expenditures
Alliance Resource Partners LP (ARLP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.10x current ratio provides a solid financial cushion.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $619.9M | $163.5M | 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 Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARLP's key strengths?
Claude: Strong free cash flow generation of $387.9M with 17.7% FCF margin demonstrates robust cash conversion despite sector challenges. Excellent liquidity position with 2.10x current ratio and exceptional 49.7x interest coverage ratio providing financial flexibility. 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% year-over-year reflects structural headwinds in coal demand due to energy transition and regulatory pressures. Exposure to cyclical commodity (bituminous coal) with limited pricing power and long-term secular decline risks. 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 $2.2B.
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 rating reflects both perspectives for balanced insights.
Is ARLP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Alliance Resource Partners LP has a BUY rating with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. 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 14.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ARLP stock in 2026?
Our dual AI analysis gives Alliance Resource Partners LP a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ARLP's free cash flow?
Alliance Resource Partners LP's operating cash flow is $651.1M, with capital expenditures of $263.3M. FCF margin is 17.7%.
How does ARLP compare to other Materials stocks?
Vs Materials sector averages: Net margin 14.2% (avg: 10%), ROE N/A (avg: 14%), current ratio 2.10 (avg: 1.6).