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 6 out of 10 in our fundamental rating. HCC was compared to 151 industry peers in the Metals & Mining industry. HCC gets an excellent profitability rating and is at the same time showing great financial health properties. HCC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HCC had positive earnings in the past year.
In the past year HCC had a positive cash flow from operations.
Of the past 5 years HCC 4 years were profitable.
In the past 5 years HCC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HCC (9.67%) is better than 86.71% of its industry peers.
HCC's Return On Equity of 11.99% is amongst the best of the industry. HCC outperforms 81.12% of its industry peers.
With an excellent Return On Invested Capital value of 9.24%, HCC belongs to the best of the industry, outperforming 82.52% 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 8.84%.
The last Return On Invested Capital (9.24%) 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 | 9.67% | ||
| ROE | 11.99% | ||
| ROIC | 9.24% |
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
The Profit Margin of HCC (16.43%) is better than 86.71% of its industry peers.
HCC's Profit Margin has declined in the last couple of years.
HCC has a Operating Margin of 16.75%. This is in the better half of the industry: HCC outperforms 74.13% of its industry peers.
HCC's Operating Margin has declined in the last couple of years.
HCC has a better Gross Margin (30.98%) than 71.33% of its industry peers.
HCC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.75% | ||
| PM (TTM) | 16.43% | ||
| GM | 30.98% |
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.
Compared to 1 year ago, HCC has more shares outstanding
The number of shares outstanding for HCC has been reduced compared to 5 years ago.
The debt/assets ratio for HCC has been reduced compared to a year ago.
2.2 Solvency
HCC has an Altman-Z score of 5.14. This indicates that HCC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.14, HCC is in the better half of the industry, outperforming 71.33% of the companies in the same industry.
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 better Debt to Equity ratio (0.08) than 64.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.14 |
ROIC/WACC0.87
WACC10.57%
2.3 Liquidity
A Current Ratio of 5.20 indicates that HCC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.20, HCC belongs to the best of the industry, outperforming 83.92% of the companies in the same industry.
HCC has a Quick Ratio of 3.99. This indicates that HCC is financially healthy and has no problem in meeting its short term obligations.
HCC has a Quick ratio of 3.99. This is in the better half of the industry: HCC outperforms 78.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.2 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
HCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.32%.
HCC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.09% yearly.
Looking at the last year, HCC shows a decrease in Revenue. The Revenue has decreased by -9.03% in the last year.
HCC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
EPS 1Y (TTM)-48.32%
EPS 3Y5.15%
EPS 5Y-2.09%
EPS Q2Q%-93.98%
Revenue 1Y (TTM)-9.03%
Revenue growth 3Y12.92%
Revenue growth 5Y3.76%
Sales Q2Q%-18.23%
3.2 Future
Based on estimates for the next years, HCC will show a small growth in Earnings Per Share. The EPS will grow by 5.37% on average per year.
Based on estimates for the next years, HCC will show a quite strong growth in Revenue. The Revenue will grow by 10.48% on average per year.
EPS Next Y-10.57%
EPS Next 2Y13.12%
EPS Next 3Y5.37%
EPS Next 5YN/A
Revenue Next Year1.55%
Revenue Next 2Y9.93%
Revenue Next 3Y10.48%
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
With a Price/Earnings ratio of 9.37, the valuation of HCC can be described as very reasonable.
Based on the Price/Earnings ratio, HCC is valued cheaper than 93.71% of the companies in the same industry.
HCC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.48, the valuation of HCC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HCC is valued a bit cheaper than the industry average as 79.02% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. HCC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
87.41% of the companies in the same industry are more expensive than HCC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.06 |
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 2Y13.12%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, HCC is not a good candidate for dividend investing.
The stock price of HCC dropped by -34.24% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HCC's Dividend Yield is a higher than the industry average which is at 3.16.
Compared to an average S&P500 Dividend Yield of 2.27, HCC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of HCC decreases each year by -28.78%.
HCC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-28.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HCC pays out 17.49% of its income as dividend. This is a sustainable payout ratio.
DP17.49%
EPS Next 2Y13.12%
EPS Next 3Y5.37%
46.21
-1.9 (-3.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners106.46%
Inst Owner Change-93.97%
Ins Owners2%
Ins Owner Change9.13%
Market Cap2.42B
Analysts78
Price Target73.24 (58.49%)
Short Float %11.25%
Short Ratio8.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.84
Dividend Growth(5Y)-28.78%
DP17.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-23.01%
Min EPS beat(2)-65.86%
Max EPS beat(2)19.83%
EPS beat(4)2
Avg EPS beat(4)-12.52%
Min EPS beat(4)-65.86%
Max EPS beat(4)19.83%
EPS beat(8)4
Avg EPS beat(8)-1.06%
EPS beat(12)6
Avg EPS beat(12)0.02%
EPS beat(16)8
Avg EPS beat(16)13.59%
Revenue beat(2)1
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-3.98%
Max Revenue beat(2)0.16%
Revenue beat(4)3
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)4.6%
Revenue beat(8)5
Avg Revenue beat(8)2.9%
Revenue beat(12)7
Avg Revenue beat(12)0.28%
Revenue beat(16)10
Avg Revenue beat(16)6.71%
PT rev (1m)-5.53%
PT rev (3m)-5.53%
EPS NQ rev (1m)46.33%
EPS NQ rev (3m)7.54%
EPS NY rev (1m)8.76%
EPS NY rev (3m)8.76%
Revenue NQ rev (1m)-3.54%
Revenue NQ rev (3m)-9.54%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 10.48 | ||
| P/S | 1.58 | ||
| P/FCF | N/A | ||
| P/OCF | 6.58 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 5.06 |
EPS(TTM)4.93
EY10.67%
EPS(NY)4.41
Fwd EY9.54%
FCF(TTM)-2.31
FCFYN/A
OCF(TTM)7.02
OCFY15.2%
SpS29.16
BVpS39.97
TBVpS39.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 11.99% | ||
| ROCE | 10.55% | ||
| ROIC | 9.24% | ||
| ROICexc | 11.68% | ||
| ROICexgc | 11.68% | ||
| OM | 16.75% | ||
| PM (TTM) | 16.43% | ||
| GM | 30.98% | ||
| 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 317.1% | ||
| Cap/Sales | 32.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.2 | ||
| Quick Ratio | 3.99 | ||
| Altman-Z | 5.14 |
F-Score4
WACC10.57%
ROIC/WACC0.87
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)-48.32%
EPS 3Y5.15%
EPS 5Y-2.09%
EPS Q2Q%-93.98%
EPS Next Y-10.57%
EPS Next 2Y13.12%
EPS Next 3Y5.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.03%
Revenue growth 3Y12.92%
Revenue growth 5Y3.76%
Sales Q2Q%-18.23%
Revenue Next Year1.55%
Revenue Next 2Y9.93%
Revenue Next 3Y10.48%
Revenue Next 5YN/A
EBIT growth 1Y-53.53%
EBIT growth 3Y-5.12%
EBIT growth 5Y-7.8%
EBIT Next Year70.15%
EBIT Next 3Y45.38%
EBIT Next 5Y34.46%
FCF growth 1Y-168.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-47.59%
OCF growth 3Y1.49%
OCF growth 5Y-7.16%