ARCH - Arch Coal, Inc.
| Previous close | 52.07 |
| Open | 52.30 |
| Bid | 50.55 x 2200 |
| Ask | 53.50 x 1000 |
| Day's range | 49.41 - 52.31 |
| 52-week range | 48.34 - 101.92 |
| Volume | 386,120 |
| Avg. volume | 358,596 |
| Market cap | 766.728M |
| Beta (5Y monthly) | 0.44 |
| PE ratio (TTM) | 3.75 |
| EPS (TTM) | 13.52 |
| Earnings date | 05 Feb 2020 |
| Forward dividend & yield | 2.00 (3.84%) |
| Ex-dividend date | 01 Mar 2020 |
| 1y target est | 91.00 |
- Zacks
Arch Coal (ARCH) Posts Narrower-Than-Expected Loss in Q4
Arch Coal's (ARCH) Q4 loss is narrower than expected. The company is working on the development of a new mine, which is set to produce high-quality coking coal.
- Bloomberg
There’s No Promised Land for Coal, in Australia or America
(Bloomberg Opinion) -- There was a time when Australia was the promised land for America’s coal giants. Faced with the decline of coal-fired power and steel-making at home, U.S. miners bought their way into Australian resources situated helpfully on China’s doorstep.Ultimately, it wasn’t enough to stave off bankruptcy. Having emerged from chapter 11 a few years ago, Peabody Energy Corp. finds its Australian business simultaneously a blessing, curse and — following a new agreement with its biggest shareholder, the ever-warm-and-fuzzy Elliott Management Corp. — potential Hail Mary.To say Peabody is in the middle of a perfect storm would be something of an understatement. Its primary product, thermal coal, is the tobacco of the energy world, with demand slumping in its domestic market despite the imaginative efforts of President Donald Trump’s administration to force it on utilities.Steel producers, which use higher-value metallurgical, or coking, coal, are also in a funk amid the trade war. Compounding that, a fire swept through one of Peabody’s coking coal mines in Australia in 2018, taking it out of commission just as prices were peaking. And now coronavirus has ground Chinese industry to a halt, not only taking down demand for energy in general, but hitting already-weak prices for natural gas, making it even more of a cut-throat competitor to thermal coal.Unsurprisingly, Peabody just announced losses for 2019, suspended its dividend and cut capital expenditure plans. Elliott, which gained its stake in Peabody’s bankruptcy, has watched the stock plummet by four-fifths since fire was reported at the North Goonyella mine in 2018. It will now put two of its own on Peabody’s board, including Elliott’s head of U.S. restructuring, and they will be joined by an Australian coal veteran. More importantly, Peabody has agreed to appoint a consultant to review the performance of its Australian mines.Despite the fire, the Australian mines remain the most profitable part of Peabody’s business. While they only account for a sixth of tonnage, they generated more than half of adjusted Ebitda last year, even after accounting for the costs of maintaining the North Goonyella mine. Australian cash margin per ton of about $17 — again, including those fire-related costs — is four times that of the U.S. business. Indeed, ex-depreciation, the difference is even starker:Peabody says it has had “a number of inquiries” about North Goonyella. However, with the whole Australian portfolio under review, the process could ultimately lead to a sale of more or possibly all of the business. After all, an activist shareholder is sitting on 30% of the eviscerated stock and has now pushed onto the board. If some suitor could be persuaded to put a multiple of just 3 times on the Australian business’ adjusted Ebitda, that would equate to $1.4 billion — not far short of the current enterprise value of the entire company.A bull might look at that and conclude Peabody is a bargain. Yet that math has held true for a while, and few seem to be charging in. By late Thursday morning in New York, the stock had already given back almost half of Wednesday’s jump on the back of the Elliott agreement.The implication is that investors are skeptical of Peabody realizing much value in Australia or, perhaps more likely, see little value in the U.S. operations alone. Back in June, Peabody announced a joint venture with rival Arch Coal Inc. to combine their assets in the Powder River Basin. It is a textbook tactic to offset declining volume with cost savings — worth $545 million to Peabody, by its own calculations. Yet the stock has dropped another 60% since then, and the entire market cap is now just $823 million. Even Arch, which has done a good job to date of returning cash to shareholders, has suffered amid weak pricing and an expansion project that will keep capex running high through this year.Beyond the ultimate result of Elliott’s efforts with Peabody, the miner’s resort to austerity and its review carry ominous signals for this industry. The American mines constitute a low-margin, high-volume business in a market where the volume of demand is under sustained pressure. The cost of capital is rising inexorably as a result of shifting attitudes on climate change and falling prices for rival energy technologies. Peabody’s Australian business may yet yield a deal that salves some investors’ wounds. But there is no promised land left to which this industry can turn.With assistance from David FicklingTo contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Zacks
Arch Coal (ARCH) Reports Q4 Loss, Tops Revenue Estimates
Arch Coal (ARCH) delivered earnings and revenue surprises of 50.00% and 12.73%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
- Zacks
Earnings Preview: Arch Coal (ARCH) Q4 Earnings Expected to Decline
Arch Coal (ARCH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Zacks
Will Arch Coal (ARCH) Beat Estimates Again in Its Next Earnings Report?
Arch Coal (ARCH) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
- Zacks
New Strong Sell Stocks for January 10th
Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today
- Zacks
Is Arch Coal (ARCH) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
- Zacks
The Market Timing Secrets No One Talks About - December 02, 2019
Have you ever dreamed of being that one in a million investor who has the talent to perfectly time the markets?
- Zacks
The Market Timing Secrets No One Talks About - November 12, 2019
In the long-run, does consistent market timing really matter to be a successful investor?
- Simply Wall St.
Calculating The Intrinsic Value Of Arch Coal, Inc. (NYSE:ARCH)
Today we will run through one way of estimating the intrinsic value of Arch Coal, Inc. (NYSE:ARCH) by taking the...
- Zacks
Natural Resource (NRP) Q3 Earnings & Revenues Beat Estimates
Natural Resource' (NRP) Q3 revenues increase on a year-over-year basis.
- Zacks
Arch Coal's (ARCH) Q3 Earnings and Revenues Beat Estimates
Arch Coal's (ARCH) third-quarter earnings and revenues are driven by higher sales volumes and excellent cost management.
- Simply Wall St.
Should You Be Impressed By Arch Coal, Inc.'s (NYSE:ARCH) ROE?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
- Zacks
The Market Timing Secrets No One Talks About - October 21, 2019
Is the ability to time the markets more of a data-driven science or a 'gut - feeling' art?
- Simply Wall St.
Is Arch Coal, Inc. (NYSE:ARCH) Overpaying Its CEO?
In 2012 John Eaves was appointed CEO of Arch Coal, Inc. (NYSE:ARCH). First, this article will compare CEO compensation...
- Zacks
Yes, You Can Time the Market. Find out How - October 02, 2019
In the long-run, does consistent market timing really matter to be a successful investor?
- Simply Wall St.
Here's How P/E Ratios Can Help Us Understand Arch Coal, Inc. (NYSE:ARCH)
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at Arch...
- Zacks
Coal Industry Players Continue to Fight a Losing Battle
Coal Industry Players Continue to Fight a Losing Battle
- Zacks
When Does Market Timing Actually Work? - September 10, 2019
Have you ever dreamed of being that one in a million investor who has the talent to perfectly time the markets?
- Zacks
Rhino Resource (RHNO) Set to Sell Pennyrile Mining Complex
Rhino Resource Partners (RHNO) decides to sell the Pennyrile Mining Complex to remain competitive and lower operating costs.
- Zacks
Peabody Energy (BTU) Feels the Heat of Low Price & Shipments
Peabody Energy (BTU) expects third-quarter performance to be weak sequentially due to lower pricing and shipments.
- Simply Wall St.
There's A Lot To Like About Arch Coal, Inc.'s (NYSE:ARCH) Upcoming 0.6% Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...
- Simply Wall St.
Imagine Owning Arch Coal (NYSE:ARCH) And Wondering If The 15% Share Price Slide Is Justified
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners...
- Zacks
Yes, You Can Time the Market. Find out How - August 15, 2019
Is the ability to time the markets more of a data-driven science or a 'gut - feeling' art?
