RAMACO RESOURCES INC-A (METC) Stock Fundamental Analysis
NASDAQ:METC - Nasdaq - US75134P3038 - Common Stock - Currency: USD
METC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 150 industry peers in the Metals & Mining industry. While METC has a great profitability rating, there are some minor concerns on its financial health. METC has a correct valuation and a medium growth rate.
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.
METC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.79%, METC is in the better half of the industry, outperforming 78.32% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.33%, METC is in the better half of the industry, outperforming 77.62% of the companies in the same industry.
METC's Return On Invested Capital of 7.00% is fine compared to the rest of the industry. METC outperforms 75.52% 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 8.63%.
The last Return On Invested Capital (7.00%) 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 | 5.79% | ||
| ROE | 10.33% | ||
| ROIC | 7% |
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
With a decent Profit Margin value of 5.35%, METC is doing good in the industry, outperforming 73.43% of the companies in the same industry.
METC's Profit Margin has been stable in the last couple of years.
The Operating Margin of METC (6.81%) is comparable to the rest of the industry.
METC's Operating Margin has improved in the last couple of years.
METC's Gross Margin of 23.13% is fine compared to the rest of the industry. METC outperforms 60.84% of its industry peers.
In the last couple of years the Gross Margin of METC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.81% | ||
| PM (TTM) | 5.35% | ||
| GM | 23.13% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so METC is still creating some value.
METC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, METC has more shares outstanding
METC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that METC is not a great score, but indicates only limited risk for bankruptcy at the moment.
METC's Altman-Z score of 2.66 is in line compared to the rest of the industry. METC outperforms 55.24% of its industry peers.
METC has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.44, METC belongs to the top of the industry, outperforming 83.92% of the companies in the same industry.
METC has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.23, METC perfoms like the industry average, outperforming 44.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.67
WACC10.37%
2.3 Liquidity
METC has a Current Ratio of 1.35. This is a normal value and indicates that METC is financially healthy and should not expect problems in meeting its short term obligations.
METC's Current ratio of 1.35 is on the low side compared to the rest of the industry. METC is outperformed by 79.02% of its industry peers.
A Quick Ratio of 0.86 indicates that METC may have some problems paying its short term obligations.
METC has a Quick ratio of 0.86. This is in the lower half of the industry: METC underperforms 75.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 |
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.
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.
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
The Earnings Per Share is expected to decrease by -6.71% on average over the next years.
The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y-97.15%
EPS Next 2Y-46.89%
EPS Next 3Y-2.43%
EPS Next 5Y-6.71%
Revenue Next Year-1.86%
Revenue Next 2Y8.98%
Revenue Next 3Y6.99%
Revenue Next 5Y7.79%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.93 indicates a correct valuation of METC.
Based on the Price/Earnings ratio, METC is valued cheaply inside the industry as 83.92% of the companies are valued more expensively.
METC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
A Price/Forward Earnings ratio of 19.31 indicates a rather expensive valuation of METC.
METC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. METC is cheaper than 60.84% of the companies in the same industry.
METC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
86.01% of the companies in the same industry are more expensive than METC, based on the Enterprise Value to EBITDA ratio.
METC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. METC is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
METC has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as METC's earnings are expected to decrease with -2.43% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-46.89%
EPS Next 3Y-2.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, METC is a good candidate for dividend investing.
The stock price of METC dropped by -22.37% 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.
Compared to an average industry Dividend Yield of 3.16, METC pays a better dividend. On top of this METC pays more dividend than 93.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, METC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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 86.41% of its income as dividend. This is not a sustainable payout ratio.
DP86.41%
EPS Next 2Y-46.89%
EPS Next 3Y-2.43%
9.75
-0.06 (-0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners46.48%
Inst Owner Change-96.69%
Ins Owners10.57%
Ins Owner Change-4.89%
Market Cap514.22M
Analysts84.44
Price Target17.34 (77.85%)
Short Float %12.82%
Short Ratio6.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.53
Dividend Growth(5Y)N/A
DP86.41%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)319.96%
Min EPS beat(2)-63.4%
Max EPS beat(2)703.32%
EPS beat(4)1
Avg EPS beat(4)135.19%
Min EPS beat(4)-85.35%
Max EPS beat(4)703.32%
EPS beat(8)3
Avg EPS beat(8)56.75%
EPS beat(12)3
Avg EPS beat(12)25.77%
EPS beat(16)5
Avg EPS beat(16)146.66%
Revenue beat(2)2
Avg Revenue beat(2)3.15%
Min Revenue beat(2)1.36%
Max Revenue beat(2)4.93%
Revenue beat(4)4
Avg Revenue beat(4)3.33%
Min Revenue beat(4)0.7%
Max Revenue beat(4)6.34%
Revenue beat(8)6
Avg Revenue beat(8)4.64%
Revenue beat(12)6
Avg Revenue beat(12)-1.13%
Revenue beat(16)8
Avg Revenue beat(16)1.34%
PT rev (1m)-10.53%
PT rev (3m)-8.93%
EPS NQ rev (1m)-100%
EPS NQ rev (3m)-100%
EPS NY rev (1m)-89.32%
EPS NY rev (3m)-91.21%
Revenue NQ rev (1m)-5.37%
Revenue NQ rev (3m)-5.37%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 19.31 | ||
| P/S | 0.74 | ||
| P/FCF | 8.21 | ||
| P/OCF | 3.71 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 5.25 |
EPS(TTM)0.7
EY7.18%
EPS(NY)0.5
Fwd EY5.18%
FCF(TTM)1.19
FCFY12.17%
OCF(TTM)2.63
OCFY26.94%
SpS13.24
BVpS6.86
TBVpS6.86
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.79% | ||
| ROE | 10.33% | ||
| ROCE | 8.86% | ||
| ROIC | 7% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 7.31% | ||
| OM | 6.81% | ||
| PM (TTM) | 5.35% | ||
| GM | 23.13% | ||
| FCFM | 8.97% |
ROA(3y)14.64%
ROA(5y)10.55%
ROE(3y)26.21%
ROE(5y)18.08%
ROIC(3y)17.88%
ROIC(5y)N/A
ROICexc(3y)19.47%
ROICexc(5y)N/A
ROICexgc(3y)19.47%
ROICexgc(5y)N/A
ROCE(3y)22.63%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y5.68%
ROICexc growth 3YN/A
ROICexc growth 5Y5.68%
OM growth 3YN/A
OM growth 5Y5.34%
PM growth 3YN/A
PM growth 5Y1.48%
GM growth 3Y27.62%
GM growth 5Y5.15%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.44 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 120.02% | ||
| Cap/Sales | 10.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 125.02% | ||
| Profit Quality | 167.49% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.66 |
F-Score5
WACC10.37%
ROIC/WACC0.67
Cap/Depr(3y)187.98%
Cap/Depr(5y)183.39%
Cap/Sales(3y)14.7%
Cap/Sales(5y)15.73%
Profit Quality(3y)70.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.64%
EPS 3YN/A
EPS 5Y22.84%
EPS Q2Q%-106.67%
EPS Next Y-97.15%
EPS Next 2Y-46.89%
EPS Next 3Y-2.43%
EPS Next 5Y-6.71%
Revenue 1Y (TTM)11.5%
Revenue growth 3Y60.13%
Revenue growth 5Y24.96%
Sales Q2Q%-10.46%
Revenue Next Year-1.86%
Revenue Next 2Y8.98%
Revenue Next 3Y6.99%
Revenue Next 5Y7.79%
EBIT growth 1Y-37.54%
EBIT growth 3YN/A
EBIT growth 5Y31.63%
EBIT Next Year1.77%
EBIT Next 3Y18.72%
EBIT Next 5Y11.19%
FCF growth 1Y-11.84%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-20.53%
OCF growth 3Y129.63%
OCF growth 5Y34.79%