NASDAQ:METC is showing decent growth, but is still valued reasonably.

Consider RAMACO RESOURCES INC-A (NASDAQ:METC) as an affordable growth stock, identified by our stock screening tool. NASDAQ:METC is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Understanding NASDAQ:METC's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:METC scores a 8 out of 10:

• 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%.
• The Revenue has been growing by 24.96% on average over the past years. This is a very strong growth!
• METC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.58% yearly.
• 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.
• 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.

Valuation Analysis for NASDAQ:METC

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:METC has earned a 9 for valuation:

• A Price/Earnings ratio of 11.55 indicates a reasonable valuation of METC.
• Based on the Price/Earnings ratio, METC is valued cheaply inside the industry as 83.97% of the companies are valued more expensively.
• METC is valuated cheaply when we compare the Price/Earnings ratio to 25.97, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 8.09 indicates a reasonable valuation of METC.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of METC indicates a rather cheap valuation: METC is cheaper than 92.31% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of METC to the average of the S&P500 Index (22.31), we can say METC is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, METC is valued a bit cheaper than 68.59% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, METC is valued cheaper than 81.41% of the companies in the same industry.
• METC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• METC has an outstanding profitability rating, which may justify a higher PE ratio.
• METC's earnings are expected to grow with 32.58% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:METC

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:METC, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 3.95 indicates that METC is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.95, METC is in the better half of the industry, outperforming 67.95% of the companies in the same industry.
• The Debt to FCF ratio of METC is 1.29, which is an excellent value as it means it would take METC, only 1.29 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.29, METC belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
• A Debt/Equity ratio of 0.10 indicates that METC is not too dependend on debt financing.
• METC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Examination for NASDAQ:METC

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:METC was assigned a score of 8 for profitability:

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

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of METC for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.