WARRIOR MET COAL INC (HCC)

US93627C1018 - Common Stock

66.14  +0.95 (+1.46%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to HCC. HCC was compared to 155 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 valued quite cheap, but it does not seem to be growing. This makes HCC very considerable for value investing!



8

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.
In the past 5 years HCC always reported a positive cash flow from operatings.

1.2 Ratios

HCC has a better Return On Assets (17.48%) than 97.42% of its industry peers.
HCC has a better Return On Equity (21.91%) than 92.26% of its industry peers.
The Return On Invested Capital of HCC (17.67%) is better than 96.77% of its industry peers.
HCC had an Average Return On Invested Capital over the past 3 years of 25.81%. This is significantly above the industry average of 9.01%.
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 RankSector 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 has a better Profit Margin (25.94%) than 96.13% of its industry peers.
HCC's Profit Margin has declined in the last couple of years.
The Operating Margin of HCC (29.03%) is better than 89.68% of its industry peers.
HCC's Operating Margin has declined in the last couple of years.
The Gross Margin of HCC (40.18%) is better than 81.29% of its industry peers.
In the last couple of years the Gross Margin of HCC has declined.
Industry RankSector 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%

8

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.
Compared to 5 years ago, HCC has more shares outstanding
HCC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 6.86 indicates that HCC is not in any danger for bankruptcy at the moment.
HCC has a Altman-Z score of 6.86. This is in the better half of the industry: HCC outperforms 78.71% 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.
With a decent Debt to FCF ratio value of 2.52, HCC is doing good in the industry, outperforming 76.77% 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.
With a decent Debt to Equity ratio value of 0.08, HCC is doing good in the industry, outperforming 63.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF 2.52
Altman-Z 6.86
ROIC/WACC2.01
WACC8.77%

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.
The Current ratio of HCC (6.86) is better than 85.81% of its industry peers.
A Quick Ratio of 5.85 indicates that HCC has no problem at all paying its short term obligations.
The Quick ratio of HCC (5.85) is better than 85.81% of its industry peers.
Industry RankSector Rank
Current Ratio 6.86
Quick Ratio 5.85

2

3. Growth

3.1 Past

The earnings per share for HCC have decreased strongly by -36.01% in the last year.
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.
Looking at the last year, HCC shows a very negative growth in Revenue. The Revenue has decreased by -10.66% in the last year.
Measured over the past years, HCC shows a small growth in Revenue. The Revenue has been growing by 4.00% on average per year.
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.
The Revenue is expected to grow by 0.84% on average over the next years.
EPS Next Y-22.5%
EPS Next 2Y-23.76%
EPS Next 3Y-6.99%
EPS Next 5YN/A
Revenue Next Year-0.81%
Revenue Next 2Y-2.17%
Revenue Next 3Y0.84%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.69, the valuation of HCC can be described as very cheap.
HCC's Price/Earnings ratio is rather cheap when compared to the industry. HCC is cheaper than 92.26% 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 28.24.
A Price/Forward Earnings ratio of 11.93 indicates a reasonable valuation of HCC.
72.26% of the companies in the same industry are more expensive than HCC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, HCC is valued a bit cheaper.
Industry RankSector Rank
PE 7.69
Fwd PE 11.93

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCC indicates a rather cheap valuation: HCC is cheaper than 89.68% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HCC is valued a bit cheaper than the industry average as 65.81% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 50.58
EV/EBITDA 4.66

4.3 Compensation for Growth

HCC has an outstanding profitability rating, which may justify a higher PE ratio.
HCC's earnings are expected to decrease with -6.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.98
EPS Next 2Y-23.76%
EPS Next 3Y-6.99%

3

5. Dividend

5.1 Amount

HCC has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 2.80, HCC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, HCC's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.46%

5.2 History

The dividend of HCC decreases each year by -29.73%.
HCC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-29.73%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

HCC pays out 9.63% of its income as dividend. This is a sustainable payout ratio.
HCC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP9.63%
EPS Next 2Y-23.76%
EPS Next 3Y-6.99%

WARRIOR MET COAL INC

NYSE:HCC (6/12/2024, 9:06:49 AM)

66.14

+0.95 (+1.46%)

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 Cap3.46B
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE 7.69
Fwd PE 11.93
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)3.98
Profitability
Industry RankSector 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 RankSector 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-22.5%
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