Last Updated: 16 Sep 2024
Executive Summary
Arch Resources Inc. (ARCH) is a leading producer of thermal and metallurgical coal. The company has a strong financial position with a market capitalization of $2.32 billion and an EBITDA of $482 million. ARCH's fundamentals are solid, with a trailing P/E ratio of 9.24 and a forward P/E ratio of 3.038. The company has a strong track record of profitability, with a profit margin of 9.36% and an operating margin of 2.52%. ARCH's return on assets and return on equity are also strong, at 8.02% and 18%, respectively.
Company Overview
Arch Resources Inc. is headquartered in St. Louis, Missouri. The company was founded in 1969 and is one of the largest coal producers in the United States. ARCH operates surface and underground mines in the Appalachian, Illinois, and Western regions of the United States. The company's coal is used by electric utilities, steel mills, and other industrial customers.
Fundamental Analysis
ARCH's fundamentals are strong. The company has a trailing P/E ratio of 9.24 and a forward P/E ratio of 3.038. This indicates that the company is undervalued relative to its peers. ARCH also has a strong track record of profitability, with a profit margin of 9.36% and an operating margin of 2.52%. The company's return on assets and return on equity are also strong, at 8.02% and 18%, respectively.
Technical Analysis
ARCH's technical analysis is mixed. The stock is currently trading below its 50-day and 200-day moving averages. This indicates that the stock is in a downtrend. However, the stock is oversold, which could lead to a rebound in the near term.
Short Term Outlook
The short-term outlook for ARCH is mixed. The stock is currently trading below its 50-day and 200-day moving averages, which indicates that the stock is in a downtrend. However, the stock is oversold, which could lead to a rebound in the near term.
Long Term Outlook
The long-term outlook for ARCH is positive. The company has a strong financial position and a solid track record of profitability. The company is also benefiting from the rising demand for coal.
Analyst Recommendations
The majority of analysts have a buy rating on ARCH. The average analyst target price is $173, which represents a potential upside of 35% from the current price.
Conclusion
Arch Resources Inc. is a solid company with a strong financial position and a solid track record of profitability. The company is also benefiting from the rising demand for coal. The stock is currently trading at a discount to its peers and is oversold, which could lead to a rebound in the near term. The long-term outlook for ARCH is positive.
