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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.2%
Sector: 6.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ALLIANCE RESOURCE PARTNERS LP (ARLP) receives a "Hold" rating with a composite score of 52.0/100, ranked #163 out of 4446 stocks. Key factor scores: Quality 50/100, Value 73/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
ALLIANCE RESOURCE PARTNERS LP (ARLP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ALLIANCE RESOURCE PARTNERS LP Do?
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. ALLIANCE RESOURCE PARTNERS LP (ARLP) is classified as a mid-cap stock in the Energy sector, specifically within the Coal industry. The company is led by CEO Joseph W. Craft and employs approximately 3,370 people. With a market capitalization of $3.5B, ARLP is one of the notable companies in the Energy sector.
As of April 2026, ALLIANCE RESOURCE PARTNERS LP receives a Hold rating with a composite score of 52.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ARLP ranks #163 out of 4,446 stocks in our coverage universe. Within the Energy sector, ALLIANCE RESOURCE PARTNERS LP ranks #28 of 128 stocks, placing it in the top quartile of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ARLP Stock Price and 52-Week Range
ALLIANCE RESOURCE PARTNERS LP (ARLP) currently trades at $26.76. The stock gained $0.25 (0.9%) in the most recent trading session. The 52-week high for ARLP is $28.39, which means the stock is currently trading -5.7% from its annual peak. The 52-week low is $22.20, putting the stock 20.5% above its annual trough. Recent trading volume was 157K shares, suggesting relatively thin trading activity.
Is ARLP Overvalued or Undervalued? — Valuation Analysis
ALLIANCE RESOURCE PARTNERS LP (ARLP) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.14x, compared to the Energy sector average of 19.63x — a discount of 43%. The price-to-book ratio stands at 1.92x, versus the sector average of 1.64x. The price-to-sales ratio is 1.57x, compared to 0.47x for the average Energy stock. On an enterprise value basis, ARLP trades at 9.17x EV/EBITDA, versus 3.50x for the sector.
Based on these multiples, ALLIANCE RESOURCE PARTNERS LP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
ALLIANCE RESOURCE PARTNERS LP (ARLP) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.2%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 11.2% versus the sector average of 3.7%.
The operating margin is 17.1% (sector: 10.7%). Net profit margin stands at 14.1%, versus 6.4% for the average Energy stock. Revenue growth is running at -3.7% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ARLP Debt, Balance Sheet, and Financial Health
ALLIANCE RESOURCE PARTNERS LP has a debt-to-equity ratio of 53.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.10x, indicating strong short-term liquidity. Cash and equivalents stand at $94M.
ARLP has a beta of 0.40, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ALLIANCE RESOURCE PARTNERS LP is 88/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ALLIANCE RESOURCE PARTNERS LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, ALLIANCE RESOURCE PARTNERS LP reported revenue of $2.27B. Net income for the quarter was $320M. Operating income came in at $389M.
In FY 2025, ALLIANCE RESOURCE PARTNERS LP reported revenue of $2.19B. Net income for the quarter was $317M. Revenue grew -10.4% year-over-year compared to FY 2024. Operating income came in at $385M.
In Q3 2025, ALLIANCE RESOURCE PARTNERS LP reported revenue of $571M. Net income for the quarter was $97M. Revenue grew -6.9% year-over-year compared to Q3 2024. Operating income came in at $105M.
In Q2 2025, ALLIANCE RESOURCE PARTNERS LP reported revenue of $547M. Net income for the quarter was $61M. Revenue grew -7.7% year-over-year compared to Q2 2024. Operating income came in at $89M.
Over the past 8 quarters, ALLIANCE RESOURCE PARTNERS LP has demonstrated a growth trajectory, with revenue expanding from $593M to $2.27B. Investors analyzing ARLP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ARLP Dividend Yield and Income Analysis
ALLIANCE RESOURCE PARTNERS LP (ARLP) does not currently pay a dividend. This is common among smaller companies in the Coal industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Energy dividend stocks may want to explore other Energy stocks or use the stock screener to filter by dividend yield.
ARLP Momentum and Technical Analysis Profile
ALLIANCE RESOURCE PARTNERS LP (ARLP) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 17/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ARLP vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing ARLP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ARLP vs S&P 500 (SPY) comparison to assess how ALLIANCE RESOURCE PARTNERS LP stacks up against the broader market across all factor dimensions.
ARLP Next Earnings Date
No upcoming earnings date has been announced for ALLIANCE RESOURCE PARTNERS LP (ARLP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ARLP? — Investment Thesis Summary
ALLIANCE RESOURCE PARTNERS LP presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 88/100) reduces downside risk.
In summary, ALLIANCE RESOURCE PARTNERS LP (ARLP) earns a Hold rating with a composite score of 52.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ARLP stock.
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Institutional Research Dossier
ALLIANCE RESOURCE PARTNERS LP (ARLP) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Alliance Resource Partners (ARLP) receives a Hold rating, reflecting a balanced view of its strong valuation metrics against the backdrop of a challenging coal industry and mixed operational performance. While ARLP exhibits compelling value characteristics and a history of profitability, the long-term secular decline in coal demand and the inherent volatility of commodity markets temper enthusiasm, warranting a cautious approach.
The company's diversification into oil and gas royalties and mining technology offers some insulation from coal-specific risks, but these segments are still relatively small compared to its core coal operations. Investors should closely monitor ARLP's ability to adapt to the evolving energy landscape and its success in deploying capital to generate sustainable returns beyond its traditional coal business.
Business Strategy & Overview
Alliance Resource Partners operates primarily as a coal producer, focusing on the Illinois Basin and Appalachia regions. The company's core strategy revolves around extracting and marketing thermal and metallurgical coal to utilities and industrial users, primarily within the United States. ARLP differentiates itself through its operational efficiency, long-term supply agreements, and strategic asset locations, which provide access to key transportation infrastructure.
Beyond coal production, ARLP has diversified into oil and gas royalties, leveraging its expertise in natural resource management. This segment provides a revenue stream that is less correlated with coal prices and demand, offering a degree of diversification. The company also invests in mining technology, developing and offering products and services such as data network systems and collision avoidance systems. This segment aims to capitalize on the growing demand for technological solutions in the mining industry, enhancing safety and productivity.
ARLP's strategic positioning involves maintaining a strong presence in its core coal markets while selectively expanding into adjacent sectors. The company focuses on securing long-term contracts with its customers, providing revenue visibility and stability. Its asset base is strategically located to minimize transportation costs and maximize access to key markets. The company also actively manages its coal reserves, ensuring a sustainable supply for its customers.
The industry context for ARLP is characterized by a long-term decline in coal demand, driven by environmental concerns and the increasing competitiveness of renewable energy sources. However, coal remains an important source of electricity generation in the United States and globally, particularly in developing countries. ARLP's strategy is to focus on high-quality coal reserves and efficient operations to remain competitive in this evolving market. The company's diversification efforts are aimed at mitigating the risks associated with the decline in coal demand and capitalizing on new opportunities in the energy and technology sectors.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-3.7%
Sector: -1.2%
+216% VS SCTR
Economic Moat Analysis
Alliance Resource Partners possesses a Narrow economic moat, primarily derived from cost advantages and strategic asset locations. The company's efficient mining operations and access to key transportation infrastructure enable it to produce and deliver coal at a lower cost than some of its competitors. This cost advantage allows ARLP to maintain profitability even in periods of low coal prices and to compete effectively for long-term supply contracts.
The company's strategic asset locations in the Illinois Basin and Appalachia regions provide access to high-quality coal reserves and proximity to major utility customers. This geographic advantage reduces transportation costs and enhances ARLP's ability to serve its customers reliably. The company's long-term supply agreements with its customers also contribute to its moat by providing revenue visibility and reducing the risk of customer churn.
However, ARLP's moat is not particularly wide due to the commoditized nature of coal and the increasing competition from alternative energy sources. Coal is a relatively undifferentiated product, and customers can easily switch between suppliers based on price. The rise of renewable energy sources, such as solar and wind, is also eroding the demand for coal, putting pressure on prices and margins. While ARLP's diversification efforts into oil and gas royalties and mining technology offer some potential for moat expansion, these segments are still relatively small compared to its core coal operations.
The company's ability to maintain its narrow moat will depend on its continued focus on cost efficiency, its success in securing long-term supply contracts, and its ability to adapt to the evolving energy landscape. The increasing regulatory pressure on coal-fired power plants and the growing demand for cleaner energy sources pose significant challenges to ARLP's long-term competitive position. The company's investments in mining technology could potentially strengthen its moat by enhancing its operational efficiency and providing differentiated products and services to its customers.
Financial Health & Profitability
Alliance Resource Partners exhibits a mixed financial profile. While the company demonstrates strong profitability metrics, its revenue growth has been inconsistent, and its reliance on a declining industry poses long-term challenges. The company's TTM revenue of $2.19 billion represents a decrease of 3.7% compared to the previous year, indicating the impact of declining coal demand. However, the company's net income of $317.25 million and operating margin of 17.1% demonstrate its ability to maintain profitability despite the revenue decline.
ARLP's return on equity (ROE) of 17.2% significantly exceeds the sector average of 6.9%, indicating efficient capital utilization. The company's current ratio of 2.10 suggests a healthy liquidity position, enabling it to meet its short-term obligations. The company's debt-to-equity ratio of 53.00 is comparable to the sector average of 55.00, indicating a moderate level of leverage.
Analyzing the quarterly financial history reveals a trend of declining revenue and net income over the past few years. The company's revenue peaked in FY2023 at $2.57 billion, with a net income of $636.17 million. However, revenue and net income have declined in subsequent quarters, reflecting the challenges facing the coal industry. The company's operating margin has also fluctuated, ranging from a high of 31.3% in Q1 FY2023 to a low of 16.2% in Q2 FY2025.
The company's free cash flow generation has been inconsistent. While ARLP generated $222.10 million in free cash flow in FY2024, data is unavailable for other periods. The company's ability to generate consistent free cash flow will be crucial for funding its diversification efforts and returning capital to shareholders. Overall, ARLP's financial health is characterized by strong profitability and liquidity, but its reliance on a declining industry and inconsistent revenue growth pose challenges to its long-term financial performance.
Valuation Assessment
Alliance Resource Partners appears undervalued based on several key valuation metrics. The company's P/E ratio of 11.2x is significantly lower than the sector average of 19.5x, suggesting that the market is undervaluing ARLP's earnings potential. Similarly, the company's EV/EBITDA ratio of 2.3x is substantially lower than the sector average of 3.5x, indicating that the company's enterprise value is low relative to its earnings before interest, taxes, depreciation, and amortization.
However, it is important to consider the context of the coal industry when assessing ARLP's valuation. The long-term decline in coal demand and the increasing competition from alternative energy sources have created significant headwinds for coal companies. Investors may be discounting ARLP's valuation to reflect these risks. The company's inconsistent revenue growth and fluctuating operating margins also contribute to the uncertainty surrounding its future earnings potential.
Despite these challenges, ARLP's strong profitability and cash flow generation support its valuation. The company's high ROE and operating margin demonstrate its ability to generate attractive returns on its investments. The company's healthy liquidity position and moderate level of leverage provide financial flexibility to navigate the challenges facing the coal industry. The absence of free cash flow data for the TTM period makes a full assessment difficult, but the FY2024 figure suggests the company can generate cash.
Overall, ARLP's valuation appears attractive relative to its earnings and cash flow potential. However, investors should carefully consider the risks associated with the coal industry and the company's inconsistent revenue growth. The company's diversification efforts into oil and gas royalties and mining technology could potentially enhance its long-term growth prospects and justify a higher valuation. ARLP's valuation is likely to remain depressed until the company can demonstrate a sustainable path to growth and profitability in the face of declining coal demand.
Risk & Uncertainty
Alliance Resource Partners faces several significant risks and uncertainties that could negatively impact its business and financial performance. The most prominent risk is the long-term decline in coal demand, driven by environmental concerns and the increasing competitiveness of renewable energy sources. This decline could lead to lower coal prices, reduced sales volumes, and decreased profitability for ARLP.
Regulatory risks also pose a significant threat to ARLP. Increasingly stringent environmental regulations on coal-fired power plants could force utilities to retire coal-fired capacity, further reducing the demand for coal. Changes in mining regulations could also increase ARLP's operating costs and reduce its access to coal reserves. The company's reliance on a limited number of customers creates concentration risk. The loss of one or more major customers could have a material adverse effect on ARLP's revenue and profitability.
Commodity price volatility is another key risk factor. Coal prices are subject to fluctuations based on supply and demand dynamics, weather patterns, and geopolitical events. A sharp decline in coal prices could significantly reduce ARLP's revenue and profitability. The company's diversification into oil and gas royalties also exposes it to commodity price risk, as oil and gas prices are subject to similar fluctuations. The company's short interest of 16/100 suggests a significant portion of investors are betting against the stock, potentially exacerbating price volatility.
Bulls Say / Bears Say
The Bull Case
BULL VIEWARLP's strong profitability and low valuation multiples make it an attractive investment, especially considering its high ROE compared to the sector.
BULL VIEWThe company's diversification into oil and gas royalties and mining technology provides a hedge against the decline in coal demand and offers potential for future growth.
BULL VIEWARLP's efficient operations and strategic asset locations enable it to remain competitive in the coal market and generate consistent cash flow.
The Bear Case
BEAR VIEWThe long-term decline in coal demand and increasing regulatory pressure will continue to erode ARLP's revenue and profitability.
BEAR VIEWARLP's reliance on a limited number of customers creates concentration risk, making it vulnerable to the loss of key contracts.
BEAR VIEWThe company's diversification efforts are unlikely to offset the decline in its core coal business, and its investments in new sectors may not generate sufficient returns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ARLP and 4,400+ other equities.
ALLIANCE RESOURCE PARTNERS LP exhibits a 93% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.2%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
—
Sector: 52.7%
Operating Margin
Core business profitability
17.1%
Sector: 10.7%
Net Margin
Bottom-line profitability
14.1%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
