Ramaco Resources (NasdaqGS:METC) - Share price, News & Analysis

METC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	3/6

METC Stock Overview

Ramaco Resources, Inc. produces and sells metallurgical coal.

Rewards

Trading at 48.2% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 32.6% per year for the next 3 years

Unstable dividend track record

Volatile share price over the past 3 months

Ramaco Resources Competitors

Alpha Metallurgical Resources

NYSE:AMR

US$2.8b

Warrior Met Coal

NYSE:HCC

US$1.7b

Peabody Energy

NYSE:BTU

US$3.2b

Coronado Global Resources

ASX:CRN

AU$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Ramaco Resources
Historical stock prices
Current Share Price	US$15.22
52 Week High	US$21.73
52 Week Low	US$4.71
Beta	1.04
1 Month Change	-21.67%
3 Month Change	-2.75%
1 Year Change	198.43%
3 Year Change	124.82%
5 Year Change	105.40%
Change since IPO	12.33%

Shareholder Returns

	METC	US Metals and Mining	US Market
7D	7.8%	0.9%	2.7%
1Y	198.4%	-8.4%	-8.1%

Return vs Industry: METC exceeded the US Metals and Mining industry which returned -12.8% over the past year.

Return vs Market: METC exceeded the US Market which returned -10.8% over the past year.

Price Volatility

Is METC's price volatile compared to industry and market?
METC volatility
METC Average Weekly Movement	15.1%
Metals and Mining Industry Average Movement	10.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: METC is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: METC's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2015	454	Randy Atkins	https://www.ramacoresources.com

Ramaco Resources, Inc. produces and sells metallurgical coal. The company’s development portfolio includes the Elk Creek project consisting of approximately 20,200 acres of controlled mineral and 16 seams located in southern West Virginia; the Berwind property comprising approximately 41,300 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia; the Knox Creek property consisting of approximately 62,100 acres of controlled mineral that is located in Virginia; and the RAM Mine property comprising approximately 1,570 acres of controlled mineral, which is situated in southwestern Pennsylvania. The company serves blast furnace steel mills and coke plants in the United States, as well as international metallurgical coal consumers.

Ramaco Resources Fundamentals Summary

How do Ramaco Resources's earnings and revenue compare to its market cap?
METC fundamental statistics
Market Cap	US$693.76m
Earnings (TTM)	US$77.09m
Revenue (TTM)	US$394.82m

8.7x

P/E Ratio

1.7x

P/S Ratio

Is METC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
METC income statement (TTM)
Revenue	US$394.82m
Cost of Revenue	US$245.47m
Gross Profit	US$149.35m
Other Expenses	US$72.27m
Earnings	US$77.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.74
Gross Margin	37.83%
Net Profit Margin	19.52%
Debt/Equity Ratio	16.8%

How did METC perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Ramaco Resources undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

48.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: METC ($15.22) is trading below our estimate of fair value ($29.39)

Significantly Below Fair Value: METC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: METC is poor value based on its PE Ratio (8.7x) compared to the US Metals and Mining industry average (8.1x).

PE vs Market: METC is good value based on its PE Ratio (8.7x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: METC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: METC is overvalued based on its PB Ratio (2.7x) compared to the US Metals and Mining industry average (2x).

Future Growth

How is Ramaco Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-32.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: METC's earnings are forecast to decline over the next 3 years (-32.6% per year).

Earnings vs Market: METC's earnings are forecast to decline over the next 3 years (-32.6% per year).

High Growth Earnings: METC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: METC's revenue is expected to decline over the next 3 years (-7.8% per year).

High Growth Revenue: METC's revenue is forecast to decline over the next 3 years (-7.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if METC's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Ramaco Resources performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

42.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: METC has high quality earnings.

Growing Profit Margin: METC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: METC has become profitable over the past 5 years, growing earnings by 42.5% per year.

Accelerating Growth: METC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: METC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (98.2%).

Return on Equity

High ROE: METC's Return on Equity (30.6%) is considered high.

Financial Health

How is Ramaco Resources's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: METC's short term assets ($141.6M) exceed its short term liabilities ($76.2M).

Long Term Liabilities: METC's short term assets ($141.6M) exceed its long term liabilities ($78.2M).

Debt to Equity History and Analysis

Debt Level: METC has more cash than its total debt.

Reducing Debt: Insufficient data to determine if METC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: METC's debt is well covered by operating cash flow (307.8%).

Interest Coverage: METC's interest payments on its debt are well covered by EBIT (26.2x coverage).

Balance Sheet

Dividend

What is Ramaco Resources's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.97%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: METC's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: METC's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether METC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if METC's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.5%), METC's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.6%), METC's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Randy Atkins (68 yo)

1.42yrs

Tenure

US$4,355,848

Compensation

Mr. Randall W. Atkins, also known as Randy, has been the Chief Executive Officer and Chairman of the Board at Ramaco, LLC since 2011 and is its Sole Owner. Mr. Atkins is an Owner or Controller of a number...

CEO Compensation Analysis

Compensation vs Market: Randy's total compensation ($USD4.36M) is about average for companies of similar size in the US market ($USD3.91M).

Compensation vs Earnings: Randy's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: METC's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: METC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31