RAMACO RESOURCES INC-A (METC)
US75134P3038 - Common Stock
We assign a fundamental rating of 6 out of 10 to METC. METC was compared to 157 industry peers in the Metals & Mining industry. METC has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on METC. With these ratings, METC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
METC had positive earnings in the past year.
METC had a positive operating cash flow in the past year.
METC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years METC had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.66%, METC belongs to the best of the industry, outperforming 85.35% of the companies in the same industry.
METC has a better Return On Equity (15.60%) than 85.35% of its industry peers.
METC's Return On Invested Capital of 9.10% is amongst the best of the industry. METC outperforms 82.80% of its industry peers.
METC had an Average Return On Invested Capital over the past 3 years of 17.88%. This is significantly above the industry average of 8.31%.
The last Return On Invested Capital (9.10%) for METC is well below the 3 year average (17.88%), which needs to be investigated, but indicates that METC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.66% | ||
| ROE | 15.6% | ||
| ROIC | 9.1% |
ROA(3y)14.64%
ROA(5y)10.55%
ROE(3y)26.21%
ROE(5y)18.08%
ROIC(3y)17.88%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.96%, METC is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
METC's Profit Margin has been stable in the last couple of years.
METC has a Operating Margin of 8.64%. This is in the better half of the industry: METC outperforms 61.78% 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 23.84%, METC is doing good in the industry, outperforming 63.69% of the companies in the same industry.
In the last couple of years the Gross Margin of METC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.64% | ||
| PM (TTM) | 7.96% | ||
| GM | 23.84% |
OM growth 3YN/A
OM growth 5Y5.34%
PM growth 3YN/A
PM growth 5Y1.48%
GM growth 3Y27.62%
GM growth 5Y5.15%
2. Health
2.1 Basic Checks
METC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for METC has been increased compared to 1 year ago.
The number of shares outstanding for METC has been increased compared to 5 years ago.
METC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.00 indicates that METC is not in any danger for bankruptcy at the moment.
METC's Altman-Z score of 3.00 is in line compared to the rest of the industry. METC outperforms 56.69% of its industry peers.
The Debt to FCF ratio of METC is 1.02, which is an excellent value as it means it would take METC, only 1.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.02, METC belongs to the top of the industry, outperforming 85.35% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that METC is not too dependend on debt financing.
METC's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. METC outperforms 43.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 3 |
ROIC/WACC0.83
WACC11%
2.3 Liquidity
A Current Ratio of 1.33 indicates that METC should not have too much problems paying its short term obligations.
METC has a Current ratio of 1.33. This is in the lower half of the industry: METC underperforms 78.98% of its industry peers.
A Quick Ratio of 0.90 indicates that METC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.90, METC is doing worse than 77.07% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
METC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.64%.
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 quite strong growth in Revenue. The Revenue has grown by 11.50% in the last year.
The Revenue has been growing by 24.96% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-53.64%
EPS 3YN/A
EPS 5Y22.84%
EPS Q2Q%-106.67%
Revenue 1Y (TTM)11.5%
Revenue growth 3Y60.13%
Revenue growth 5Y24.96%
Sales Q2Q%-10.46%
3.2 Future
METC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.83% yearly.
The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y-67.6%
EPS Next 2Y7.91%
EPS Next 3Y-2.83%
EPS Next 5YN/A
Revenue Next Year-0.46%
Revenue Next 2Y11.79%
Revenue Next 3Y6.66%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.79, METC is valued on the expensive side.
Based on the Price/Earnings ratio, METC is valued a bit cheaper than the industry average as 73.25% of the companies are valued more expensively.
METC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 6.31, the valuation of METC can be described as very cheap.
Based on the Price/Forward Earnings ratio, METC is valued cheaper than 94.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, METC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
82.17% of the companies in the same industry are more expensive than METC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, METC is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
METC has an outstanding profitability rating, which may justify a higher PE ratio.
METC's earnings are expected to decrease with -2.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y7.91%
EPS Next 3Y-2.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, METC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.98, METC pays a better dividend. On top of this METC pays more dividend than 91.72% of the companies listed in the same industry.
METC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
METC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
METC pays out 54.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.67%
EPS Next 2Y7.91%
EPS Next 3Y-2.83%
RAMACO RESOURCES INC-A
NASDAQ:METC (11/21/2024, 6:34:36 PM)
After market: 13.5 +0.35 (+2.66%)13.15
+0.72 (+5.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap689.72M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 6.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.66% | ||
| ROE | 15.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.64% | ||
| PM (TTM) | 7.96% | ||
| GM | 23.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-53.64%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-67.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.5%
Revenue growth 3Y60.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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