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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HCC was profitable.
In the past year HCC had a positive cash flow from operations.
Of the past 5 years HCC 4 years were profitable.
Each year in the past 5 years HCC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HCC (4.02%) is better than 72.73% of its industry peers.
HCC has a Return On Equity of 5.08%. This is in the better half of the industry: HCC outperforms 68.18% of its industry peers.
HCC has a Return On Invested Capital (3.17%) which 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 11.16%.
The last Return On Invested Capital (3.17%) for HCC is well below the 3 year average (23.37%), which needs to be investigated, but indicates that HCC had better years and this may not be a problem.
| 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.
In the last couple of years the Profit Margin of HCC has declined.
The Operating Margin of HCC (6.72%) is comparable to the rest of the industry.
HCC's Operating Margin has declined in the last couple of years.
HCC has a better Gross Margin (23.52%) than 62.99% of its industry peers.
In the last couple of years the Gross Margin of HCC has declined.
| 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
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 less shares outstanding than it did 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 4.62. This indicates that HCC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HCC (4.62) is better than 72.73% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that HCC is not too dependend on debt financing.
The Debt to Equity ratio of HCC (0.08) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.62 |
ROIC/WACC0.36
WACC8.9%
2.3 Liquidity
A Current Ratio of 5.14 indicates that HCC has no problem at all paying its short term obligations.
HCC has a Current ratio of 5.14. This is amongst the best in the industry. HCC outperforms 84.42% of its industry peers.
A Quick Ratio of 4.00 indicates that HCC has no problem at all paying its short term obligations.
HCC's Quick ratio of 4.00 is fine compared to the rest 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
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.
Looking at the last year, HCC shows a very negative growth in Revenue. The Revenue has decreased by -20.88% 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)-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.
Based on estimates for the next years, HCC will show a quite strong growth in Revenue. The Revenue will grow by 9.65% on average per year.
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
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.
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
HCC is valuated rather expensively with a Price/Earnings ratio of 21.89.
Based on the Price/Earnings ratio, HCC is valued a bit cheaper than the industry average as 73.38% of the companies are valued more expensively.
HCC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.32.
HCC is valuated reasonably with a Price/Forward Earnings ratio of 9.00.
80.52% of the companies in the same industry are more expensive than HCC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HCC to the average of the S&P500 Index (22.13), we can say HCC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.89 | ||
| Fwd PE | 9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HCC is valued a bit cheaper than 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.51 |
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 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
17.42% of the earnings are spent on dividend by HCC. This is a low number and sustainable payout ratio.
DP17.42%
EPS Next 2Y2.78%
EPS Next 3Y11.11%
46.85
+0.06 (+0.13%)
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 Cap2.46B
Analysts78
Price Target63.92 (36.44%)
Short Float %14.12%
Short Ratio7.1
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 | 21.89 | ||
| Fwd PE | 9 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | 8.98 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)2.14
EY4.57%
EPS(NY)5.21
Fwd EY11.12%
FCF(TTM)-3.65
FCFYN/A
OCF(TTM)5.22
OCFY11.14%
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 | 4.62 |
F-Score4
WACC8.9%
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%