WARRIOR MET COAL INC (HCC) Stock Fundamental Analysis
NYSE:HCC - New York Stock Exchange, Inc. - US93627C1018 - Common Stock - Currency: USD
Taking everything into account, HCC scores 5 out of 10 in our fundamental rating. HCC was compared to 154 industry peers in the Metals & Mining industry. HCC is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HCC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HCC had positive earnings in the past year.
HCC had a positive operating cash flow in the past year.
Of the past 5 years HCC 4 years were profitable.
HCC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HCC (4.02%) is better than 72.73% of its industry peers.
HCC has a better Return On Equity (5.08%) than 68.18% of its industry peers.
HCC has a Return On Invested Capital of 3.17%. This is comparable to the rest of the industry: HCC outperforms 57.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HCC is significantly above the industry average of 11.16%.
The 3 year average ROIC (23.37%) for HCC is well above the current ROIC(3.17%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 7.98% is fine compared to the rest of the industry. HCC outperforms 78.57% of its industry peers.
HCC's Profit Margin has declined in the last couple of years.
HCC's Operating Margin of 6.72% is in line compared to the rest of the industry. HCC outperforms 59.74% of its industry peers.
In the last couple of years the Operating Margin of HCC has declined.
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.
Compared to 1 year ago, HCC has more shares outstanding
The number of shares outstanding for HCC has been reduced compared to 5 years ago.
Compared to 1 year ago, HCC has an improved debt to assets ratio.
2.2 Solvency
HCC has an Altman-Z score of 4.64. This indicates that HCC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.64, HCC is in the better half of the industry, outperforming 74.03% of the companies in the same industry.
HCC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.08, HCC is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.64 |
ROIC/WACC0.36
WACC8.88%
2.3 Liquidity
HCC has a Current Ratio of 5.14. This indicates that HCC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HCC (5.14) is better than 84.42% 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.
HCC has a Quick ratio of 4.00. This is in the better half of the industry: HCC outperforms 79.22% of its industry peers.
| 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%.
HCC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
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%-41.42%
3.2 Future
The Earnings Per Share is expected to grow by 11.11% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.65% on average over the next years. This is quite good.
EPS Next Y-77.34%
EPS Next 2Y2.78%
EPS Next 3Y11.11%
EPS Next 5YN/A
Revenue Next Year-15.04%
Revenue Next 2Y6.53%
Revenue Next 3Y9.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.97, which indicates a rather expensive current valuation of HCC.
73.38% of the companies in the same industry are more expensive than HCC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.34, HCC is valued at the same level.
With a Price/Forward Earnings ratio of 9.03, the valuation of HCC can be described as very reasonable.
79.87% of the companies in the same industry are more expensive than HCC, based on the Price/Forward Earnings ratio.
HCC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCC is valued a bit cheaper than the industry average as 74.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
HCC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, HCC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.99, HCC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.68, HCC pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of HCC decreases each year by -28.78%.
HCC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-28.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HCC pays out 17.42% of its income as dividend. This is a sustainable payout ratio.
DP17.42%
EPS Next 2Y2.78%
EPS Next 3Y11.11%
47.01
+0.28 (+0.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners111.75%
Inst Owner Change6.03%
Ins Owners2.05%
Ins Owner Change10.22%
Market Cap2.47B
Analysts78
Price Target63.92 (35.97%)
Short Float %14.69%
Short Ratio7.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)-1667.09%
Min EPS beat(2)-3268.32%
Max EPS beat(2)-65.86%
EPS beat(4)2
Avg EPS beat(4)-828.25%
Min EPS beat(4)-3268.32%
Max EPS beat(4)19.83%
EPS beat(8)3
Avg EPS beat(8)-413.19%
EPS beat(12)6
Avg EPS beat(12)-271.01%
EPS beat(16)8
Avg EPS beat(16)-187.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-3.98%
Max Revenue beat(2)2.62%
Revenue beat(4)3
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)3.17%
Revenue beat(8)5
Avg Revenue beat(8)0.55%
Revenue beat(12)8
Avg Revenue beat(12)1.26%
Revenue beat(16)11
Avg Revenue beat(16)6.91%
PT rev (1m)-3.89%
PT rev (3m)-12.96%
EPS NQ rev (1m)-69.88%
EPS NQ rev (3m)-152.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-74.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.86%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-16.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.97 | ||
| Fwd PE | 9.03 | ||
| P/S | 1.87 | ||
| P/FCF | N/A | ||
| P/OCF | 9.01 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)2.14
EY4.55%
EPS(NY)5.21
Fwd EY11.08%
FCF(TTM)-3.65
FCFYN/A
OCF(TTM)5.22
OCFY11.1%
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 | 4.64 |
F-Score4
WACC8.88%
ROIC/WACC0.36
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-77.34%
EPS Next 2Y2.78%
EPS Next 3Y11.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.88%
Revenue growth 3Y12.92%
Revenue growth 5Y3.76%
Sales Q2Q%-41.42%
Revenue Next Year-15.04%
Revenue Next 2Y6.53%
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 Year-9.92%
EBIT Next 3Y34.29%
EBIT Next 5Y32.55%
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%