Don't overlook NASDAQ:METC—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Mar 11, 2024

Consider RAMACO RESOURCES INC-A (NASDAQ:METC) as a top value stock, identified by our stock screening tool. NASDAQ:METC shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Analysis for NASDAQ:METC

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:METC, the assigned 9 reflects its valuation:

The Price/Earnings ratio is 11.55, which indicates a very decent valuation of METC.
Based on the Price/Earnings ratio, METC is valued cheaper than 83.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.97. METC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.09, the valuation of METC can be described as very reasonable.
92.31% of the companies in the same industry are more expensive than METC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.31. METC is valued rather cheaply when compared to this.
METC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. METC is cheaper than 68.59% of the companies in the same industry.
81.41% of the companies in the same industry are more expensive than METC, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of METC may justify a higher PE ratio.
A more expensive valuation may be justified as METC's earnings are expected to grow with 32.58% in the coming years.

Understanding NASDAQ:METC's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:METC has achieved a 8:

With an excellent Return On Assets value of 12.38%, METC belongs to the best of the industry, outperforming 91.03% of the companies in the same industry.
METC's Return On Equity of 22.30% is amongst the best of the industry. METC outperforms 92.31% of its industry peers.
METC has a better Return On Invested Capital (15.17%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for METC is significantly above the industry average of 9.02%.
METC has a Profit Margin of 11.89%. This is amongst the best in the industry. METC outperforms 82.69% of its industry peers.
The Operating Margin of METC (13.73%) is better than 72.44% of its industry peers.
In the last couple of years the Operating Margin of METC has grown nicely.
With a decent Gross Margin value of 28.79%, METC is doing good in the industry, outperforming 71.79% of the companies in the same industry.
In the last couple of years the Gross Margin of METC has grown nicely.

Assessing Health Metrics for NASDAQ:METC

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:METC was assigned a score of 7 for health:

An Altman-Z score of 3.95 indicates that METC is not in any danger for bankruptcy at the moment.
The Altman-Z score of METC (3.95) is better than 67.95% of its industry peers.
METC has a debt to FCF ratio of 1.29. This is a very positive value and a sign of high solvency as it would only need 1.29 years to pay back of all of its debts.
The Debt to FCF ratio of METC (1.29) is better than 87.18% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that METC is not too dependend on debt financing.
The current and quick ratio evaluation for METC is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Growth Analysis for NASDAQ:METC

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:METC, the assigned 8 reflects its growth potential:

METC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.84% yearly.
Looking at the last year, METC shows a very strong growth in Revenue. The Revenue has grown by 22.61%.
Measured over the past years, METC shows a very strong growth in Revenue. The Revenue has been growing by 24.96% on average per year.
Based on estimates for the next years, METC will show a very strong growth in Earnings Per Share. The EPS will grow by 32.58% on average per year.
Based on estimates for the next years, METC will show a quite strong growth in Revenue. The Revenue will grow by 14.81% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of METC contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.