WARRIOR MET COAL INC (HCC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HCC - US93627C1018 - Common Stock
90.09 USD
-2.29 (-2.48%)
93.45 USD
+3.36 (+3.73%)
Overall HCC gets a fundamental rating of 5 out of 10. We evaluated HCC against 154 industry peers in the Metals & Mining industry. HCC has an average financial health and profitability rating. HCC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year HCC was profitable.
- HCC had a positive operating cash flow in the past year.
- 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
- The Return On Assets of HCC (1.31%) is better than 61.04% of its industry peers.
- The Return On Equity of HCC (1.66%) is comparable to the rest of the industry.
- The Return On Invested Capital of HCC (0.25%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HCC is significantly above the industry average of 10.32%.
- The 3 year average ROIC (23.37%) for HCC is well above the current ROIC(0.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 1.66% | ||
| ROIC | 0.25% |
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 Profit Margin of 2.87%. This is in the better half of the industry: HCC outperforms 62.99% of its industry peers.
- In the last couple of years the Profit Margin of HCC has declined.
- With a Operating Margin value of 0.57%, HCC perfoms like the industry average, outperforming 48.05% of the companies in the same industry.
- HCC's Operating Margin has declined in the last couple of years.
- The Gross Margin of HCC (19.90%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of HCC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.57% | ||
| PM (TTM) | 2.87% | ||
| GM | 19.9% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HCC is creating value.
- The number of shares outstanding for HCC has been increased compared to 1 year ago.
- 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
- An Altman-Z score of 6.74 indicates that HCC is not in any danger for bankruptcy at the moment.
- HCC has a better Altman-Z score (6.74) than 67.53% of its industry peers.
- HCC has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of HCC (0.10) is better than 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.74 |
ROIC/WACC0.02
WACC10.6%
2.3 Liquidity
- HCC has a Current Ratio of 4.13. This indicates that HCC is financially healthy and has no problem in meeting its short term obligations.
- HCC has a better Current ratio (4.13) than 74.68% of its industry peers.
- HCC has a Quick Ratio of 3.00. This indicates that HCC is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 3.00, HCC is doing good in the industry, outperforming 70.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.13 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
- The earnings per share for HCC have decreased strongly by -89.00% in the last year.
- The Earnings Per Share has been decreasing by -2.09% on average over the past years.
- Looking at the last year, HCC shows a very negative growth in Revenue. The Revenue has decreased by -23.12% in the last year.
- 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)-89%
EPS 3Y5.15%
EPS 5Y-2.09%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)-23.12%
Revenue growth 3Y12.92%
Revenue growth 5Y3.76%
Sales Q2Q%0.27%
3.2 Future
- The Earnings Per Share is expected to grow by 10.37% on average over the next years. This is quite good.
- Based on estimates for the next years, HCC will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y-75.14%
EPS Next 2Y7.27%
EPS Next 3Y10.37%
EPS Next 5YN/A
Revenue Next Year-14.98%
Revenue Next 2Y12.46%
Revenue Next 3Y11.55%
Revenue Next 5Y8.52%
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
- With a Price/Earnings ratio of 112.61, HCC can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of HCC is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.60. HCC is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 15.88, HCC is valued correctly.
- HCC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HCC is cheaper than 70.13% of the companies in the same industry.
- HCC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 112.61 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.27%
EPS Next 3Y10.37%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.33%, HCC is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.02, HCC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, HCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
- HCC pays out 48.24% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.24%
EPS Next 2Y7.27%
EPS Next 3Y10.37%
WARRIOR MET COAL INC / HCC FAQ
What is the ChartMill fundamental rating of WARRIOR MET COAL INC (HCC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HCC.
Can you provide the valuation status for WARRIOR MET COAL INC?
ChartMill assigns a valuation rating of 2 / 10 to WARRIOR MET COAL INC (HCC). This can be considered as Overvalued.
What is the profitability of HCC stock?
WARRIOR MET COAL INC (HCC) has a profitability rating of 5 / 10.
What is the earnings growth outlook for WARRIOR MET COAL INC?
The Earnings per Share (EPS) of WARRIOR MET COAL INC (HCC) is expected to decline by -75.14% in the next year.
Can you provide the dividend sustainability for HCC stock?
The dividend rating of WARRIOR MET COAL INC (HCC) is 3 / 10 and the dividend payout ratio is 48.24%.