$Arch Resources (ARCH.US)$ 🎯 2023.8.9 The current price is ...

New data: the second two quarters of 2022 and the whole year, the first two quarters of 2023

In 2022, revenue increased 68.7%, operating profit increased 1.86 times, and net profit increased 2.94 times.

Revenue for the first two quarters of 2023 fell 18.7%, mainly a sharp decline of 33.2% in the second quarter, operating profit falling 54.9%, and net profit falling 59.5%.

The balance ratio fell from 67.7% to 43.9% in 2022, fell further to 40.3% in 2023Q2, and long-term loans fell to 109 million, accounting for 7.6% of the 1.43 billion net assets. The leverage ratio is very low, which should prepare for the bottom of the cycle. What's worse is that the share capital has been increasing; it increased by 4.5% in the first two quarters of 2023 alone.

In terms of cash flow, in the past 5 years, the net operating amount in 2020 was only lower than the net investment amount. The remaining 4 years all had a large percentage exceeding, and there was a lot of shareholder surplus. This is also where the motivation for large dividends lies.

Currently, the price-earnings ratio is 2.1, and the price-earnings ratio TTM has been raised to 3. If you calculate the 5-year average net profit of 374 million, the price-earnings ratio is 6.63. The valuation is not that high, so you can still increase positions cautiously.