Warrior Met Coal, Inc. Fundamental Analysis (NYSE: HCC)
Warrior Met Coal, Inc. (NYSE: HCC) shows moderate financial fundamentals with a PE ratio of 21.06, profit margin of 13.05%, and ROE of 10.02%. The company generates $1.7B in annual revenue with weak year-over-year growth of -14.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HCC's fundamental strength across five key dimensions:
Efficiency Score
WeakHCC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCC trades at attractive valuation levels.
Growth Score
WeakHCC faces weak or negative growth trends.
Financial Health Score
ExcellentHCC maintains a strong and stable balance sheet.
Profitability Score
WeakHCC struggles to sustain strong margins.
Key Financial Metrics
Is HCC Expensive or Cheap?
P/E Ratio
HCC trades at 21.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HCC's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Warrior Met Coal, Inc. at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.34 times EBITDA. This signals the market has high growth expectations.
How Well Does HCC Make Money?
Net Profit Margin
For every $100 in sales, Warrior Met Coal, Inc. keeps $13.05 as profit after all expenses.
Operating Margin
Core operations generate 13.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.02 in profit for every $100 of shareholder equity.
ROA
Warrior Met Coal, Inc. generates $7.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Warrior Met Coal, Inc. produces operating cash flow of $301.16M, showing steady but balanced cash generation.
Free Cash Flow
Warrior Met Coal, Inc. generates weak or negative free cash flow of $6.13M, restricting financial flexibility.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
HCC converts 0.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HCC Stacks Against Its Sector Peers
| Metric | HCC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.06 | 21.20 | Neutral |
| ROE | 10.02% | 1274.00% | Weak |
| Net Margin | 13.05% | 1248.00% | Weak |
| Debt/Equity | 0.10 | -1.74 (disorted) | Distorted |
| Current Ratio | 3.93 | 2.20 | Strong Liquidity |
| ROA | 7.56% | 4306.00% | Weak |
HCC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Warrior Met Coal, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.91%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
255.16%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
98.16%
Industry Style: Cyclical, Value, Commodity
High Growth