Alpha Metallurgical Resources Inc. (AMR)
During the last year, Alpha Metallurgical Resources returned a positive performance of 122.6%, with a high of $383.45 and a low of $132.72. Over the same period, the stock outpaced the S&P 500 index by 102.7%. The company's 50-day average price was $294.68 per share as of January 2024. Alpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. Based in Bristol, TN, the mid-cap Energy company has 4,030 full time employees. Alpha Metallurgical Resources has provided a 0.5% dividend yield over the last 12 months.
An Exceptionally Strong Balance Sheet:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,031 | $2,001 | $1,416 | $2,259 | $4,102 | $3,335 |
| Operating Margins | 10% | -8% | -12% | 16% | 39% | 26% |
| Net Margins | 15% | -16% | -32% | 13% | 35% | 23% |
| Net Income (M) | $299 | -$316 | -$447 | $289 | $1,449 | $767 |
| Diluted Shares (M) | 16 | 18 | 18 | 19 | 18 | 14 |
| Earnings Per Share | $25.54 | -$16.82 | -$24.42 | $15.3 | $79.49 | $50.55 |
| EPS Growth | n/a | -165.86% | -45.18% | 162.65% | 419.54% | -36.41% |
| Avg. Price | $66.52 | $39.62 | $5.49 | $29.47 | $129.81 | $161.65 |
| P/E Ratio | 2.44 | -2.36 | -0.22 | 1.88 | 1.57 | 3.08 |
| FCF (M) | $76 | -$29 | $10 | $92 | $1,320 | $592 |
| CAPEX (M) | $82 | $160 | $120 | $83 | $164 | $245 |
| EV (M) | $1,364 | $1,136 | $544 | $909 | $2,115 | $2,163 |
| EV / EBITDA | n/a | 7.78 | -3.37 | 2.44 | 1.32 | 2.47 |
| Total Debt (M) | $545 | $593 | $583 | $449 | $11 | $7 |
| Net Debt / EBITDA | n/a | 2.6 | -2.75 | 0.99 | -0.18 | -0.33 |
| Current Ratio | 2.34 | 2.26 | 1.97 | 2.53 | 2.77 | 3.33 |
Alpha Metallurgical Resources Is Fairly Priced to Earnings but Overpriced Compared to Its Book Value:
Alpha Metallurgical Resources has a trailing twelve month P/E ratio of 7.3, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $31.59, the company has a forward P/E ratio of 9.3. The compound average growth rate of the company's historical and projected earnings per share is 3.1%. On this basis, the company's PEG ratio is 1.89, which suggests that it is overpriced. Alpha Metallurgical Resources is also overpriced compared to its book value, since its P/B ratio of 3.16 is higher than the sector average of 1.78. The company's shares are currently 3.8% below their Graham number. Despite its elevated P/B ratio, Alpha Metallurgical Resources's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued.
Alpha Metallurgical Resources Has a Large Number of Insider Shareholders:
There are 2 analysts covering Alpha Metallurgical Resources, with target prices ranging from $194.0 to $399.0 per share, for an average of $296.5. As of January 2024, the company is trading -0.6% away from its average target price, implying there is an analyst belief that shares are overpriced. On average, analysts recommend to hold Alpha Metallurgical Resources.
At 11.3%, Alpha Metallurgical Resources has an above average percentage of its shares sold short. Institutions own 80.4% of the company's shares, and it has a large amount of insider shareholders because 16.38% are owned by corporate insiders. Overall, the company's top shareholder is Blackrock Inc., whose 8% stake in the company is worth $442,652,848.
