Alpha Metallurgical Resources (AMR) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: 0.36%
• Average Volume (3M): 315.61K
• Price to Earnings (P/E): 64.1
• Beta (1Y): 1.58
• Revenue Growth: -29.63%
• EPS Growth: -108.26%
• Country: US
• Employees: 3,960
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): -0.38
• Shares Outstanding: 13,053,823
• 10 Day Avg. Volume: 305,779
• 30 Day Avg. Volume: 315,612
• PEG Ratio: -0.19
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 6.84
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 16.05
• Enterprise Value/Ebitda: 7.30
• 1Y Price Target: $160.33
• Price Target Upside: -7.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: $146.00 ▼(-15.98% Downside)

Alpha Metallurgical Resources' overall stock score reflects a combination of short-term financial challenges and positive operational adjustments. The company's strong liquidity and improved cost management are significant positives, but the negative P/E ratio and market challenges weigh on the valuation. Technical indicators suggest potential stability, but the stock's attractiveness is limited by current profitability issues.

Positive Factors

Strong Liquidity Position

A strong liquidity position enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Improved Cost Performance

Improved cost efficiency strengthens margins, supporting profitability even in challenging market conditions, and reflects effective operational management.

Restart of Share Buyback Program

Resuming share buybacks indicates confidence in the company's financial health and can enhance shareholder value through reduced share count.

Negative Factors

Challenging Metallurgical Coal Market

Weak demand in the metallurgical coal market can pressure revenues and margins, impacting long-term growth prospects and financial performance.

Multiyear Low Coal Prices

Sustained low coal prices can reduce revenue and profitability, challenging the company's ability to maintain margins and invest in future growth.

Uncertain Economic and Trade Conditions

Economic and trade uncertainties can disrupt market stability, affecting demand and pricing, which poses risks to long-term strategic planning.

Alpha Metallurgical Resources Business Overview & Revenue Model

Company Description

Alpha Metallurgical Resources, Inc., a mining company, produces, processes, and sells met and thermal coal in Virginia and West Virginia. As of December 31, 2021, it operated twenty active mines and eight coal preparation and load-out facilities. The company was formerly known as Contura Energy, Inc. and changed its name to Alpha Metallurgical Resources, Inc. in February 2021. Alpha Metallurgical Resources, Inc. was incorporated in 2016 and is headquartered in Bristol, Tennessee.

How the Company Makes Money

Alpha Metallurgical Resources generates revenue primarily through the sale of metallurgical coal to steel manufacturers and other industrial customers. The company has established long-term contracts and relationships with major steel producers, which provide a stable revenue stream. Additionally, AMR benefits from fluctuations in coal prices, allowing it to capitalize on market demand. The company also engages in the sale of thermal coal, contributing to its overall earnings. Partnerships with transportation companies enhance its distribution capabilities, ensuring efficient delivery of products to customers, which further supports its revenue generation.

Alpha Metallurgical Resources Financial Statement Overview

Summary

Alpha Metallurgical Resources faces short-term challenges with declining revenues and profitability, as reflected in the TTM data. Despite these issues, the company maintains a strong balance sheet with low leverage, providing a cushion for recovery. Cash flow generation remains positive, although growth has slowed. The company needs to address operational inefficiencies to improve its financial performance.

Income Statement

Alpha Metallurgical Resources has experienced a significant decline in revenue and profitability over the TTM period. The gross profit margin and net profit margin have decreased sharply, indicating reduced efficiency and profitability. The negative EBIT margin further highlights operational challenges. However, the company has shown strong profitability in previous years, suggesting potential for recovery.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity has turned negative in the TTM period, reflecting recent profitability issues. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, but the company maintains a positive operating cash flow to net income ratio, indicating operational cash generation. The free cash flow to net income ratio is moderate, suggesting some cash flow challenges but not critical.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.37B	2.96B	3.47B	4.10B	2.26B	1.42B
Gross Profit	63.91M	331.65M	969.89M	1.69B	455.55M	-13.92M
EBITDA	140.52M	388.59M	1.02B	1.73B	511.66M	6.50M
Net Income	-37.23M	187.58M	721.96M	1.45B	288.79M	-446.90M
Balance Sheet
Total Assets	2.37B	2.44B	2.41B	2.31B	1.86B	1.68B
Cash, Cash Equivalents and Short-Term Investments	449.03M	481.58M	268.21M	347.96M	81.21M	139.23M
Total Debt	5.77M	5.78M	14.41M	10.97M	448.55M	588.20M
Total Liabilities	759.40M	789.21M	832.13M	882.72M	1.31B	1.48B
Stockholders Equity	1.61B	1.65B	1.57B	1.43B	546.91M	200.10M
Cash Flow
Free Cash Flow	173.91M	381.07M	605.79M	1.32B	91.64M	-24.75M
Operating Cash Flow	321.13M	579.92M	851.16M	1.48B	174.94M	129.24M
Investing Cash Flow	-185.62M	-230.99M	-166.00M	-329.36M	-89.86M	-209.97M
Financing Cash Flow	-15.63M	-128.90M	-656.43M	-981.87M	-147.04M	-22.38M

Alpha Metallurgical Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 173.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMR, the sentiment is Positive. The current price of 173.76 is above the 20-day moving average (MA) of 155.64, above the 50-day MA of 145.42, and above the 200-day MA of 143.82, indicating a bullish trend. The MACD of 7.22 indicates Negative momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 65.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMR.

Alpha Metallurgical Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARLP	78 Outperform	$3.27B	13.90	13.16%	10.60%	-8.59%	-55.01%
NRP	73 Outperform	$1.39B	9.87	2.97%	3.97%	-20.92%	-26.59%
METC	67 Neutral	$2.10B	-93.83	-5.70%	1.38%	-12.79%	-134.14%
BTU	67 Neutral	$3.44B	25.91	3.78%	1.06%	-5.83%	-73.88%
HCC	64 Neutral	$3.47B	82.68	1.94%	0.49%	-27.62%	-90.48%
AMR	57 Neutral	$2.17B	64.14	-2.29%	0.36%	-29.63%	-108.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Alpha Metallurgical Resources Corporate Events

Alpha Metallurgical Resources Highlights Safety Achievements

Alpha Metallurgical Resources has demonstrated strong operational performance in 2024, with significant contributions to safety and environmental stewardship. The company has achieved a lower incident rate compared to industry averages and has been recognized with numerous safety and environmental awards, reflecting its commitment to responsible mining practices.