ANR  Alpha Natural Resources Inc.

Exchange

NYSE

Sector

Energy

Industry

Coal Mining

Market Cap.

52.95M

Vuru Grade

31.14/100

Current Price

$0.26
+0.0000 (+0.0000%)

Stability Price

$0.10
Overvalued by 61.56%

Company Metrics

  • P/E 42.89
  • P/S 0.0132
  • P/B 0.0173
  • EPS -3.3950
  • Cash ROIC 5.97%
  • Cash Ratio 31.09
  • Dividend 0 / N/A %
  • Avg. Vol. 5.41M
  • Shares 48.59M
  • Market Cap. 52.95M

Company Description

Alpha Natural Resources, Inc. operates as a coal producer primarily in the central Appalachian and northern Appalachian regions. The company engages in underground room and pillar mining, and surface mining operations, with a focus on high bituminous, low sulfur steam coal and metallurgical coal reserves. It supplies and exports metallurgical coal for use in the steel-making processes; and thermal... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Alpha Natural Resources' Plan of Reorganization Confirmed by US Bankruptcy Court
PR Newswire (press release) - Jul 7, 2016
BRISTOL, Va., July 7, 2016 /PRNewswire/ -- Alpha Natural Resources, Inc. (ANRZQ) today announced that, contingent upon the finalization of certain definitive documentation and the entry of an order in the coming days, the United States Bankruptcy Court ...
Judge Approves Alpha Natural Resources' Restructuring Plan - Wall Street Journal
Alpha Natural Resources Reaches Deal with US to Exit Bankruptcy, Clean-Up Mines - Insurance Journal
Alpha Natural Resources announces production goal for 2017
WSAZ-TV - Nov 18, 2016
KINGSPORT, TN (WSAZ) -- A coal company in West Virginia and Kentucky has announced their goal to produce 13 million tons of coal in 2017.
West Virginia Just Sued a Major Coal Company for Fraud - Mother Jones
Alpha, fresh out of bankruptcy, announces goal of mining 13 million tons in 2017 - West Virginia MetroNews
Alpha Natural Resources Pays Off Term Loan and Closes on New Letter of Credit ...
PR Newswire (press release) - May 2, 2017
KINGSPORT, Tenn., May 2, 2017 /PRNewswire/ -- Alpha Natural Resources (ANR Inc.) announces that it has paid off its term loan under the $125 million credit agreement entered into at the time of the company's emergence from bankruptcy (the "Exit ...
Alpha Natural Resources Announces Agreement With West Virginia DEP Regarding ...
PR Newswire (press release) - Nov 29, 2016
KINGSPORT, Tenn., Nov. 29, 2016 /PRNewswire/ -- Alpha Natural Resources Holdings, Inc. and ANR, Inc. announce that an agreement has been reached to resolve the concerns expressed by the West Virginia Department of Environmental Protection over ...
WVDEP and Alpha Natural Resources reach $15 million settlement - WDTV
Regulators settle fraud complaint against Contura execs - Casper Star-Tribune Online
Alpha Natural Resources Affiliate Operations in West Virginia Honored for ...
PR Newswire (press release) - Feb 22, 2017
KINGSPORT, Tenn., Feb. 22, 2017 /PRNewswire/ -- Alpha Natural Resources Holdings, Inc. and ANR, Inc. announce outstanding safety performance for 2016, with five affiliate operations in West Virginia honored for safety achievements by the West Virginia ...
Alpha Natural Resources emerges from bankruptcy
Seeking Alpha - Jul 27, 2016
Alpha Natural Resources (OTCPK:ANRZQ) says it has emerged from Chapter 11 bankruptcy as a smaller, privately-held company operating 18 mines and eight preparation plants in West Virginia and Kentucky. New CEO David Stetson says the restructured ...
Alpha Natural Resources Successfully Emerges From Bankruptcy - PR Newswire (press release)
Alpha Natural Reaches Settlement With West Virginia
Wall Street Journal - Jun 9, 2016
Bankrupt coal operator Alpha Natural Resources Inc. has come to terms with West Virginia environmental regulators, and agreed to cover hundreds of millions of dollars worth of reclamation work at its mines.
Alpha Natural Resources Asks For $25M Reimbursement
Law360 (subscription) - Nov 5, 2016
Law360, New York (November 4, 2016, 9:08 PM EDT) -- Alpha Natural Resources Inc. on Friday asked a Virginia bankruptcy judge to approve a settlement as part of its previously approved Chapter 11 reorganization that gives it $25 million from a ...
Alpha Natural Resources Gets Nod On Ch. 11 Plan
Law360 (subscription) - Jul 8, 2016
Law360, New York (July 8, 2016, 6:50 PM EDT) -- A Virginia bankruptcy judge on Thursday approved coal producer Alpha Natural Resources Inc.'s debt restructuring plan, clearing the way for the company's first-lien lenders to take over some of its ...
Alpha Natural Resources Affiliate Announces Completed Sale of Mining Assets in ...
PR Newswire (press release) - Oct 13, 2016
KINGSPORT, Tenn., Oct. 13, 2016 /PRNewswire/ -- Alpha Natural Resources Holdings, Inc. and ANR, Inc., along with their affiliate Enterprise Mining Corporation, LLC, announce the divestment of substantially all of the assets of the Enterprise mining ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ANR to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ANR's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.26 Current Price

$-0.04 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.10 Stability Price (EPV)

Overvalued by 61.56%


Discount Rate: 15.0%

$0.28 NCA Price

Undervalued by 6.30%


Poor Cash Return on Invested Capital over the past 5 years

ANR has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ANR has only created $5.97 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 20.28M -148.77M -511.03M -1.95M -286,974.00
divided by
Invested Capital 11.14B 9.60B 8.58B -5.55M -13.82M
Cash ROIC 0.18% -1.55% -5.96% 35.12% 2.08%

Very Poor Return on Equity over the past 5 years

ANR has shown an inability to deliver results for shareholders. This could be due to poor management, ANR operating in a highly competitive industry, or having a weak business in general.

ANR has generated a $21.14 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income -2.44B -1.11B -874.96M - -
divided by
Stockholders' Equity 4.97B 4.07B 2.99B - -
Return on Equity -49.06% -27.35% -29.29% - -

Poor Business Performance over the past 6 years

ANR's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

ANR has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Free Cash Flow 93.16M 20.28M -148.77M -511.03M -1.95M -286,974.00

Very Strong Balance Sheet

ANR has more Cash than its Total Liabilities, resulting in $0.28 Net Cash per share. In other words, if you buy ANR today, the price you're paying for shares is actually $-0.01 because $0.28 of Cash is included in the current share price. This much Cash is very healthy. It can help ANR sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Cash 585.88M 730.72M 956.71M 1.15B 5.55M 13.82M
Current Assets 2.48B 2.33B 1.99B 1.88B 5.60M 13.90M
Total Assets 16.51B 13.09B 11.80B 10.74B 5.63M 13.92M
Current Liabilities 1.77B 1.22B 1.24B 1.01B 146,978.00 444,618.00
Total Liabilities 9.08B 8.12B 7.73B 7.75B 146,978.00 444,618.00
Stockholder' Equity 7.43B 4.97B 4.07B 2.99B - -
Current Ratio 1.40 1.91 1.60 1.86 38.12 31.27
TL-to-TA 0.55 0.62 0.65 0.72 0.03 0.03

Low or No Reinvestment of Profits over the past 6 years

ANR has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to ANR operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Retained Earnings -183.00M -2.67B -3.79B -4.66B -2.94M -3.66M
Retained Earnings Growth - -1,360.81% -41.65% -23.11% 99.94% -24.63%

Loss Making Entity over the past 6 years

ANR has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$14.56 of every $100 of Revenue have been a loss, on average over the past 6 years.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Net Income -677.39M -2.44B -1.11B -874.96M - -
divided by
Revenue 7.11B 6.97B 4.95B 4.29B - 2.28M
Net Profit Margin -9.53% -34.94% -22.48% -20.41% - -

Inconsistent Gross Profit Margins over the past 6 years

ANR has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$24.88 of every $100 worth of sales have been Gross Profit, on average over the past 6 years.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Gross Profit 1.37B 1.16B 249.43M 357.75M - 2.28M
divided by
Revenue 7.11B 6.97B 4.95B 4.29B - 2.28M
Gross Margin 19.20% 16.67% 5.04% 8.34% - 100.00%

Low Capital Intensity over the past 6 years

ANR has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that ANR may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Capital Expenditure 593.49M 498.14M 257.79M 227.17M 24,776.00 6,608.00
divided by
Net Income -677.39M -2.44B -1.11B -874.96M - -
Capital Expenditure Ratio -87.61% -20.44% -23.15% -25.96% - -

No Dividend History over the past 6 years

ANR has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Dividend Paid - - - - - -
divided by
Shares Outstanding 180.13M 220.26M 220.88M 221.40M 33.72M 48.59M
Dividend Paid Per Share - - - - - -
Price at Year End 20.43 9.27 7.10 1.79 0.24 0.24
Dividend Yield - - - - - -

History of Stock Buybacks over the past 6 years

ANR has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Shares Outstanding 180.13M 220.26M 220.88M 221.40M 33.72M 48.59M
Stock Bought Back - -18.22% -0.28% -0.23% 556.53% -30.59%
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