WARRIOR MET COAL INC (HCC)
US93627C1018 - Common Stock
We assign a fundamental rating of 6 out of 10 to HCC. HCC was compared to 157 industry peers in the Metals & Mining industry. HCC gets an excellent profitability rating and is at the same time showing great financial health properties. HCC is cheap, but on the other hand it scores bad on growth. With these ratings, HCC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year HCC was profitable.
HCC had a positive operating cash flow in the past year.
Of the past 5 years HCC 4 years were profitable.
In the past 5 years HCC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HCC (17.48%) is better than 97.45% of its industry peers.
The Return On Equity of HCC (21.91%) is better than 92.99% of its industry peers.
HCC's Return On Invested Capital of 17.67% is amongst the best of the industry. HCC outperforms 97.45% 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 8.91%.
The 3 year average ROIC (25.81%) for HCC is well above the current ROIC(17.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.48% | ||
| ROE | 21.91% | ||
| ROIC | 17.67% |
ROA(3y)20.74%
ROA(5y)16.42%
ROE(3y)29.05%
ROE(5y)24.32%
ROIC(3y)25.81%
ROIC(5y)N/A
1.3 Margins
HCC's Profit Margin of 25.94% is amongst the best of the industry. HCC outperforms 96.18% of its industry peers.
HCC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 29.03%, HCC belongs to the best of the industry, outperforming 89.17% of the companies in the same industry.
In the last couple of years the Operating Margin of HCC has declined.
With an excellent Gross Margin value of 40.18%, HCC belongs to the best of the industry, outperforming 81.53% of the companies in the same industry.
In the last couple of years the Gross Margin of HCC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.03% | ||
| PM (TTM) | 25.94% | ||
| GM | 40.18% |
OM growth 3YN/A
OM growth 5Y-2.68%
PM growth 3YN/A
PM growth 5Y-10.8%
GM growth 3Y40.08%
GM growth 5Y-1.66%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HCC is creating value.
HCC has more shares outstanding than it did 1 year ago.
HCC has more shares outstanding than it did 5 years ago.
HCC has a better debt/assets ratio than last year.
2.2 Solvency
HCC has an Altman-Z score of 7.02. This indicates that HCC is financially healthy and has little risk of bankruptcy at the moment.
HCC's Altman-Z score of 7.02 is fine compared to the rest of the industry. HCC outperforms 78.34% of its industry peers.
The Debt to FCF ratio of HCC is 2.52, which is a good value as it means it would take HCC, 2.52 years of fcf income to pay off all of its debts.
HCC has a better Debt to FCF ratio (2.52) than 75.80% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that HCC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.08, HCC is doing good in the industry, outperforming 63.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 7.02 |
ROIC/WACC2.05
WACC8.6%
2.3 Liquidity
HCC has a Current Ratio of 6.86. This indicates that HCC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.86, HCC belongs to the best of the industry, outperforming 85.35% of the companies in the same industry.
A Quick Ratio of 5.85 indicates that HCC has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.85, HCC belongs to the best of the industry, outperforming 85.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.86 | ||
| Quick Ratio | 5.85 |
3. Growth
3.1 Past
HCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.01%.
Measured over the past 5 years, HCC shows a small growth in Earnings Per Share. The EPS has been growing by 1.93% on average per year.
The Revenue for HCC has decreased by -10.66% in the past year. This is quite bad
HCC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.00% yearly.
EPS 1Y (TTM)-36.01%
EPS 3YN/A
EPS 5Y1.93%
EPS Q2Q%-26.33%
Revenue 1Y (TTM)-10.66%
Revenue growth 3Y28.91%
Revenue growth 5Y4%
Sales Q2Q%-1.21%
3.2 Future
The Earnings Per Share is expected to decrease by -6.99% on average over the next years.
Based on estimates for the next years, HCC will show a small growth in Revenue. The Revenue will grow by 0.88% on average per year.
EPS Next Y-22.47%
EPS Next 2Y-10.91%
EPS Next 3Y-6.99%
EPS Next 5YN/A
Revenue Next Year-0.75%
Revenue Next 2Y-0.55%
Revenue Next 3Y0.88%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.08, the valuation of HCC can be described as reasonable.
HCC's Price/Earnings ratio is rather cheap when compared to the industry. HCC is cheaper than 93.63% of the companies in the same industry.
HCC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
The Price/Forward Earnings ratio is 9.18, which indicates a very decent valuation of HCC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HCC indicates a rather cheap valuation: HCC is cheaper than 84.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, HCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCC is valued cheaper than 87.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HCC is valued a bit cheaper than the industry average as 65.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.13 | ||
| EV/EBITDA | 4.88 |
4.3 Compensation for Growth
HCC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HCC's earnings are expected to decrease with -6.99% in the coming years.
PEG (NY)N/A
PEG (5Y)4.18
EPS Next 2Y-10.91%
EPS Next 3Y-6.99%
5. Dividend
5.1 Amount
HCC has a yearly dividend return of 0.46%, which is pretty low.
HCC's Dividend Yield is a higher than the industry average which is at 2.66.
With a Dividend Yield of 0.46, HCC pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of HCC decreases each year by -29.73%.
HCC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-29.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
9.63% of the earnings are spent on dividend by HCC. This is a low number and sustainable payout ratio.
The Dividend Rate of HCC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP9.63%
EPS Next 2Y-10.91%
EPS Next 3Y-6.99%
WARRIOR MET COAL INC
NYSE:HCC (7/26/2024, 7:04:00 PM)
After market: 69.47 0 (0%)69.47
+1.78 (+2.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 9.18 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.48% | ||
| ROE | 21.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.03% | ||
| PM (TTM) | 25.94% | ||
| GM | 40.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.86 | ||
| Quick Ratio | 5.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-36.01%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-22.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.66%
Revenue growth 3Y28.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y