WARRIOR MET COAL INC (HCC) Stock Fundamental Analysis
NYSE:HCC - New York Stock Exchange, Inc. - US93627C1018 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HCC. HCC was compared to 154 industry peers in the Metals & Mining industry. While HCC has a great health rating, its profitability is only average at the moment. HCC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HCC was profitable.
In the past year HCC had a positive cash flow from operations.
HCC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HCC had a positive operating cash flow.
1.2 Ratios
HCC's Return On Assets of 4.02% is fine compared to the rest of the industry. HCC outperforms 71.43% of its industry peers.
HCC has a Return On Equity of 5.08%. This is in the better half of the industry: HCC outperforms 68.83% of its industry peers.
With a Return On Invested Capital value of 3.17%, HCC perfoms like the industry average, outperforming 56.49% of the companies in the same industry.
HCC had an Average Return On Invested Capital over the past 3 years of 23.37%. This is significantly above the industry average of 8.61%.
The last Return On Invested Capital (3.17%) for HCC is well below the 3 year average (23.37%), which needs to be investigated, but indicates that HCC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 5.08% | ||
| ROIC | 3.17% |
ROA(3y)20.53%
ROA(5y)13.87%
ROE(3y)27.27%
ROE(5y)18.84%
ROIC(3y)23.37%
ROIC(5y)N/A
1.3 Margins
HCC has a better Profit Margin (7.98%) than 77.92% of its industry peers.
In the last couple of years the Profit Margin of HCC has declined.
The Operating Margin of HCC (6.72%) is better than 61.04% of its industry peers.
HCC's Operating Margin has declined in the last couple of years.
HCC has a Gross Margin of 23.52%. This is in the better half of the industry: HCC outperforms 62.99% of its industry peers.
HCC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.72% | ||
| PM (TTM) | 7.98% | ||
| GM | 23.52% |
OM growth 3Y-15.98%
OM growth 5Y-11.14%
PM growth 3Y4.87%
PM growth 5Y-7.13%
GM growth 3Y-11.66%
GM growth 5Y-5.37%
2. Health
2.1 Basic Checks
HCC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HCC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HCC has less shares outstanding
Compared to 1 year ago, HCC has an improved debt to assets ratio.
2.2 Solvency
HCC has an Altman-Z score of 4.71. This indicates that HCC is financially healthy and has little risk of bankruptcy at the moment.
HCC has a Altman-Z score of 4.71. This is in the better half of the industry: HCC outperforms 74.03% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that HCC is not too dependend on debt financing.
HCC's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. HCC outperforms 65.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.71 |
ROIC/WACC0.32
WACC9.97%
2.3 Liquidity
A Current Ratio of 5.14 indicates that HCC has no problem at all paying its short term obligations.
The Current ratio of HCC (5.14) is better than 83.12% of its industry peers.
HCC has a Quick Ratio of 4.00. This indicates that HCC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.00, HCC is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.14 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
HCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -75.12%.
HCC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.09% yearly.
HCC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.88%.
Measured over the past years, HCC shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
EPS 1Y (TTM)-75.12%
EPS 3Y5.15%
EPS 5Y-2.09%
EPS Q2Q%-106.08%
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y12.92%
Revenue growth 5Y3.76%
Sales Q2Q%-40.43%
3.2 Future
HCC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.54% yearly.
HCC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.65% yearly.
EPS Next Y-54.86%
EPS Next 2Y7.59%
EPS Next 3Y16.54%
EPS Next 5YN/A
Revenue Next Year-12.59%
Revenue Next 2Y7.59%
Revenue Next 3Y9.65%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.13, which indicates a rather expensive current valuation of HCC.
Based on the Price/Earnings ratio, HCC is valued a bit cheaper than 70.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.85. HCC is around the same levels.
HCC is valuated reasonably with a Price/Forward Earnings ratio of 8.30.
83.12% of the companies in the same industry are more expensive than HCC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.89. HCC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCC is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
HCC has a very decent profitability rating, which may justify a higher PE ratio.
HCC's earnings are expected to grow with 16.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.59%
EPS Next 3Y16.54%
5. Dividend
5.1 Amount
HCC has a yearly dividend return of 0.71%, which is pretty low.
HCC's Dividend Yield is a higher than the industry average which is at 3.00.
With a Dividend Yield of 0.71, HCC pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of HCC decreases each year by -28.78%.
HCC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-28.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
17.42% of the earnings are spent on dividend by HCC. This is a low number and sustainable payout ratio.
DP17.42%
EPS Next 2Y7.59%
EPS Next 3Y16.54%
47.36
-1.01 (-2.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change0.14%
Ins Owners2%
Ins Owner Change10.13%
Market Cap2.49B
Analysts78
Price Target66.5 (40.41%)
Short Float %13.39%
Short Ratio6.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend0.84
Dividend Growth(5Y)-28.78%
DP17.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-235.25%
Min EPS beat(2)-404.65%
Max EPS beat(2)-65.86%
EPS beat(4)2
Avg EPS beat(4)-112.33%
Min EPS beat(4)-404.65%
Max EPS beat(4)19.83%
EPS beat(8)3
Avg EPS beat(8)-55.23%
EPS beat(12)6
Avg EPS beat(12)-32.38%
EPS beat(16)8
Avg EPS beat(16)-8.41%
Revenue beat(2)1
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-3.98%
Max Revenue beat(2)2.83%
Revenue beat(4)3
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)3.17%
Revenue beat(8)5
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)1.28%
Revenue beat(16)11
Avg Revenue beat(16)6.92%
PT rev (1m)-9.44%
PT rev (3m)-11.89%
EPS NQ rev (1m)-103.86%
EPS NQ rev (3m)-101.56%
EPS NY rev (1m)-43.47%
EPS NY rev (3m)-59.1%
Revenue NQ rev (1m)-13.24%
Revenue NQ rev (3m)-15.29%
Revenue NY rev (1m)-9.67%
Revenue NY rev (3m)-15.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 8.3 | ||
| P/S | 1.88 | ||
| P/FCF | N/A | ||
| P/OCF | 9.07 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)2.14
EY4.52%
EPS(NY)5.71
Fwd EY12.05%
FCF(TTM)-3.65
FCFYN/A
OCF(TTM)5.22
OCFY11.02%
SpS25.15
BVpS39.51
TBVpS39.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 5.08% | ||
| ROCE | 3.62% | ||
| ROIC | 3.17% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 3.96% | ||
| OM | 6.72% | ||
| PM (TTM) | 7.98% | ||
| GM | 23.52% | ||
| FCFM | N/A |
ROA(3y)20.53%
ROA(5y)13.87%
ROE(3y)27.27%
ROE(5y)18.84%
ROIC(3y)23.37%
ROIC(5y)N/A
ROICexc(3y)38.43%
ROICexc(5y)N/A
ROICexgc(3y)38.43%
ROICexgc(5y)N/A
ROCE(3y)26.69%
ROCE(5y)N/A
ROICexcg growth 3Y-25.32%
ROICexcg growth 5Y-18.92%
ROICexc growth 3Y-25.32%
ROICexc growth 5Y-18.92%
OM growth 3Y-15.98%
OM growth 5Y-11.14%
PM growth 3Y4.87%
PM growth 5Y-7.13%
GM growth 3Y-11.66%
GM growth 5Y-5.37%
F-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 292.61% | ||
| Cap/Sales | 35.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.14 | ||
| Quick Ratio | 4 | ||
| Altman-Z | 4.71 |
F-Score4
WACC9.97%
ROIC/WACC0.32
Cap/Depr(3y)316.54%
Cap/Depr(5y)219.43%
Cap/Sales(3y)25.98%
Cap/Sales(5y)19.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.12%
EPS 3Y5.15%
EPS 5Y-2.09%
EPS Q2Q%-106.08%
EPS Next Y-54.86%
EPS Next 2Y7.59%
EPS Next 3Y16.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y12.92%
Revenue growth 5Y3.76%
Sales Q2Q%-40.43%
Revenue Next Year-12.59%
Revenue Next 2Y7.59%
Revenue Next 3Y9.65%
Revenue Next 5YN/A
EBIT growth 1Y-81.7%
EBIT growth 3Y-5.12%
EBIT growth 5Y-7.8%
EBIT Next Year24.6%
EBIT Next 3Y36.56%
EBIT Next 5Y33.14%
FCF growth 1Y-129.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-71.57%
OCF growth 3Y1.49%
OCF growth 5Y-7.16%