WARRIOR MET COAL INC (HCC) Stock Fundamental Analysis
NYSE:HCC - New York Stock Exchange, Inc. - US93627C1018 - Common Stock - Currency: USD
HCC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
HCC had positive earnings in the past year.
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
HCC has a better Return On Assets (4.02%) than 71.43% of its industry peers.
HCC has a better Return On Equity (5.08%) than 68.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.17%, HCC is in line with its industry, outperforming 56.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HCC is significantly above the industry average of 8.83%.
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
Looking at the Profit Margin, with a value of 7.98%, HCC is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
HCC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.72%, HCC is in the better half of the industry, outperforming 60.39% of the companies in the same industry.
In the last couple of years the Operating Margin of HCC has declined.
HCC has a better Gross Margin (23.52%) than 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.
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 4.71 indicates that HCC is not in any danger for bankruptcy at the moment.
HCC has a Altman-Z score of 4.71. This is in the better half of the industry: HCC outperforms 73.38% of its industry peers.
HCC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
HCC has a Debt to Equity ratio of 0.08. This is in the better half 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
WACC10.07%
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.
Looking at the Current ratio, with a value of 5.14, HCC belongs to the top of the industry, outperforming 83.12% of the companies in the same industry.
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.
The Quick ratio of HCC (4.00) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.14 | ||
| Quick Ratio | 4 |
3. Growth
3.1 Past
The earnings per share for HCC have decreased strongly by -75.12% in the last year.
Measured over the past years, HCC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.09% on average per year.
HCC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.88%.
The Revenue has been growing slightly by 3.76% on average over the past years.
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
HCC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.11% yearly.
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-14.01%
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.
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 22.56, HCC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HCC indicates a somewhat cheap valuation: HCC is cheaper than 70.13% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. HCC is around the same levels.
HCC is valuated reasonably with a Price/Forward Earnings ratio of 9.27.
HCC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HCC is cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HCC to the average of the S&P500 Index (22.43), we can say HCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HCC indicates a somewhat cheap valuation: HCC is cheaper than 68.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
The decent profitability rating of HCC 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
HCC has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 3.00, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 17.42% of its income as dividend. This is a sustainable payout ratio.
DP17.42%
EPS Next 2Y2.78%
EPS Next 3Y11.11%
48.27
+0.37 (+0.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change6.04%
Ins Owners2%
Ins Owner Change10.13%
Market Cap2.54B
Analysts78
Price Target66.5 (37.77%)
Short Float %13.39%
Short Ratio6.7
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)-9.44%
PT rev (3m)-11.89%
EPS NQ rev (1m)-138.45%
EPS NQ rev (3m)-115.5%
EPS NY rev (1m)-49.8%
EPS NY rev (3m)-79.78%
Revenue NQ rev (1m)-12.86%
Revenue NQ rev (3m)-14.92%
Revenue NY rev (1m)-11.14%
Revenue NY rev (3m)-16.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 9.27 | ||
| P/S | 1.92 | ||
| P/FCF | N/A | ||
| P/OCF | 9.25 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 8.82 |
EPS(TTM)2.14
EY4.43%
EPS(NY)5.21
Fwd EY10.79%
FCF(TTM)-3.65
FCFYN/A
OCF(TTM)5.22
OCFY10.81%
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
WACC10.07%
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-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-14.01%
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 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%