Arch Resources Gross Profit vs. Operating Margin
| ARCH Stock | USD 164.14 0.94 0.58% |
Gross Profit | First Reported 1987-03-31 | Previous Quarter 35.8 M | Current Value 5.9 M | Quarterly Volatility 79.8 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.22 | 0.2023 |
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For Arch Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arch Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arch Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arch Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arch Resources over time as well as its relative position and ranking within its peers.
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Arch Resources' Revenue Breakdown by Earning Segment
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Is Oil, Gas & Consumable Fuels space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arch Resources. If investors know Arch will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arch Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.80) | Dividend Share 4.14 | Earnings Share 9.59 | Revenue Per Share 145.14 | Quarterly Revenue Growth (0.17) |
The market value of Arch Resources is measured differently than its book value, which is the value of Arch that is recorded on the company's balance sheet. Investors also form their own opinion of Arch Resources' value that differs from its market value or its book value, called intrinsic value, which is Arch Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arch Resources' market value can be influenced by many factors that don't directly affect Arch Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arch Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arch Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arch Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Arch Resources Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Arch Resources's current stock value. Our valuation model uses many indicators to compare Arch Resources value to that of its competitors to determine the firm's financial worth. Arch Resources is number one stock in gross profit category among its peers. It is rated second in operating margin category among its peers . As of now, Arch Resources' Gross Profit is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Arch Resources' earnings, one of the primary drivers of an investment's value.Arch Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
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| = | 1.39 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | (0) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Arch Operating Margin Comparison
Arch Resources is currently under evaluation in operating margin category among its peers.
Arch Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Arch Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arch Resources will eventually generate negative long term returns. The profitability progress is the general direction of Arch Resources' change in net profit over the period of time. It can combine multiple indicators of Arch Resources, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 38.8 M | 40.7 M | |
| Operating Income | 546.5 M | 573.8 M | |
| Income Before Tax | 551.6 M | 579.1 M | |
| Total Other Income Expense Net | 5.1 M | 5.4 M | |
| Net Income | 464 M | 487.2 M | |
| Income Tax Expense | 87.5 M | 91.9 M | |
| Net Income Applicable To Common Shares | 1.5 B | 1.6 B | |
| Net Income From Continuing Ops | 464 M | 487.2 M | |
| Non Operating Income Net Other | -19.9 M | -20.8 M | |
| Interest Income | 17.3 M | 16.4 M | |
| Net Interest Income | 2.4 M | 2.6 M | |
| Change To Netincome | -176.1 M | -167.3 M | |
| Net Income Per Share | 25.45 | 26.72 | |
| Income Quality | 1.37 | 0.75 | |
| Net Income Per E B T | 0.84 | 0.82 |
Arch Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Arch Resources. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Arch Resources position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Arch Resources' important profitability drivers and their relationship over time.
Use Arch Resources in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Arch Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Arch Resources will appreciate offsetting losses from the drop in the long position's value.Arch Resources Pair Trading
Arch Resources Pair Trading Analysis
The ability to find closely correlated positions to Arch Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arch Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Arch Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Arch Resources to buy it.
The correlation of Arch Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Arch Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arch Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Arch Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Arch Resources position
In addition to having Arch Resources in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Theme or any other thematic opportunities.
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Check out Trending Equities. For more detail on how to invest in Arch Stock please use our How to Invest in Arch Resources guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project Arch Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Arch Resources at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Arch Resources' income statement, its balance sheet, and the statement of cash flows.