As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners is:
Alpha Metallurgical Resources Inc (AMR)
Alpha Metallurgical Resources Inc is a Tennessee-based coal mining company with operations across Virginia and West Virginia. The company’s portfolio of mining operations consists of underground mines, surface mines and coal preparation plants. It produces low-ash metallurgical coal, including High-Vol. A, Mid-Vol., High-Vol. B, and Low-Vol. coal, which is shipped to domestic and international coke and steel producers. The reportable segments of the company are Met. It extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities.
A quick look at the share price history (below) over the past twelve months shows that the price is down 7.02%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $2.72 Billion
Enterprise Value: $2.39 Billion
Operating Earnings
Operating Earnings: $543 Million
Acquirer’s Multiple
Acquirer’s Multiple: 4.40
Free Cash Flow (TTM)
Free Cash Flow: $450 Million
FCF/MC Yield %:
FCF/MC Yield: 17.55
Shareholder Yield %:
Shareholder Yield: 13.80
Other Indicators
Piotroski F Score: 5.00
Buyback Yield %: 12.90
ROA (5 Year Avge%): 22
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