I've analyzed this company and stock using a number of metrics, ratios and discounted cash flow models.
I find the stock to be potentially undervalued.
The company generates tons of free cash flow and owner earnings, has price multiples that are very low, wonderful historical numbers and growth, and a discounted cash flow model that has the stock trading well below its current share price.
ARLP has plenty of upside if one is patient. Also, the dividend is quite nice, which means one would be paid to own the stock.
Disclosure: I do not trade or short stocks. I am a long term value investor. I sell when a stock reaches it's fair value or my target price, which ever comes first.)
Completely agree. Look at how they blew by the last few quarters. The last quarter CC was terrific. 8.51 times this years earnings, 10% annual projected growth rate, PEG around 0.8, and a divi around 6%. Why is this not selling at 11-12 times earnings? Factor in the mining safety equipment segment, and I think you have a seriously undervalued MLP even after this recent run-up.
Agree that this is a good performer. However I would caution you against valuing this using those metrics which are appropriate for valuing a corporation. Throw out your EPS, PEG ratios, etc. DCF is what matters for MLPs.