NasdaqGS:METC

Stock Analysis Report

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Executive Summary

Ramaco Resources, Inc. produces and sells metallurgical coal The company’s development portfolio includes the Elk Creek project consisting of approximately 20,552 acres of controlled mineral and 24 seams located in southern West Virginia; the Berwind coal property comprising approximately 31,200 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 61,343 acres of controlled mineral that is located in Virginia; and the RAM Mine property comprising approximately 1,567 acres of controlled mineral, which is situated in southwestern Pennsylvania.


Snowflake Analysis

Very undervalued with high growth potential.


Similar Companies

Share Price & News

How has Ramaco Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: METC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

METC

1.0%

US Metals and Mining

2.2%

US Market


1 Year Return

-39.8%

METC

23.5%

US Metals and Mining

16.2%

US Market

Return vs Industry: METC underperformed the US Metals and Mining industry which returned 22% over the past year.

Return vs Market: METC underperformed the US Market which returned 15.9% over the past year.


Shareholder returns

METCIndustryMarket
7 Day-4.3%1.0%2.2%
30 Day-8.2%12.5%4.9%
90 Day8.7%24.3%17.8%
1 Year-39.8%-39.8%26.4%23.5%18.7%16.2%
3 Year-70.4%-70.4%16.8%9.3%41.1%32.0%
5 Yearn/a87.8%71.1%74.5%55.7%

Price Volatility Vs. Market

How volatile is Ramaco Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: METC ($2.25) is trading below our estimate of fair value ($20.69)

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


Price To Earnings Ratio

PE vs Industry: METC is good value based on its PE Ratio (4.6x) compared to the US Metals and Mining industry average (13.7x).

PE vs Market: METC is good value based on its PE Ratio (4.6x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: METC is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: METC is good value based on its PB Ratio (0.6x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

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

56.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: METC's forecast earnings growth (56.3% per year) is above the savings rate (2.2%).

Earnings vs Market: METC's earnings (56.3% per year) are forecast to grow faster than the US market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: METC's revenue (25.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: METC's revenue (25.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: METC's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Ramaco Resources performed over the past 5 years?

68.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: METC has high quality earnings.

Growing Profit Margin: METC's current net profit margins (9.3%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: METC has become profitable over the past 5 years, growing earnings by 68.7% per year.

Accelerating Growth: METC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: METC had negative earnings growth (-25%) over the past year, making it difficult to compare to the Metals and Mining industry average (-22.6%).


Return on Equity

High ROE: METC's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Ramaco Resources's financial position?


Financial Position Analysis

Short Term Liabilities: METC's short term assets ($58.1M) exceed its short term liabilities ($28.7M).

Long Term Liabilities: METC's short term assets ($58.1M) exceed its long term liabilities ($43.0M).


Debt to Equity History and Analysis

Debt Level: METC's debt to equity ratio (14.7%) is considered satisfactory.

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 (215.8%).

Interest Coverage: METC's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate METC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate METC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if METC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if METC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of METC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Michael Bauersachs (55 yo)

5yrs

Tenure

US$2,210,191

Compensation

Mr. Michael D. Bauersachs serves as the Chief Executive Officer and President at Ramaco Resources, Inc., Sole Managing Member of Ramaco Development, LLC since August 2015. Mr. Bauersachs has been the Presi ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD2.21M) is above average for companies of similar size in the US market ($USD607.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Randall Atkins
Founder & Executive Chairman5yrsUS$2.21m6.14%
$ 5.7m
Michael Bauersachs
Founder5yrsUS$2.21m6.26%
$ 5.9m
Christopher Blanchard
Senior VP & COO2.58yrsUS$1.12m0.84%
$ 790.3k
Jeremy Sussman
Chief Financial Officer1.25yrsno data0.63%
$ 587.6k
John Marcum
Chief Accounting Officer & Controller1.08yrsno data0.20%
$ 188.6k
Jason Fannin
Senior VP & Chief Marketing Officer0.33yrno data0.11%
$ 107.4k
Michael Windisch
Consultant1.08yrsno data0.10%
$ 96.7k
Mark Clemens
Executive VP & Chief Commercial Officer4.58yrsUS$937.08kno data

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: METC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Randall Atkins
Founder & Executive Chairman5yrsUS$2.21m6.14%
$ 5.7m
Michael Bauersachs
Founder5yrsUS$2.21m6.26%
$ 5.9m
Peter Leidel
Non-Independent Director0.75yrno datano data
Bryan Lawrence
Non-Independent Director3.67yrsno datano data
Richard Whiting
Independent Director3.67yrsUS$225.00k0.19%
$ 176.2k
Patrick Graney
Independent Director3.67yrsUS$225.00k0.33%
$ 312.0k
Bruce Cryder
Independent Director3.17yrsUS$225.00k0.20%
$ 184.6k
Tyler Reeder
Non-Independent Director3.67yrsno datano data
Trent Kososki
Non-Independent Director0.75yrno datano data
Charles Christian
Independent Director1.17yrsUS$137.16k0.10%
$ 96.4k

3.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: METC's board of directors are considered experienced (3.7 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 4.6%.


Top Shareholders

Company Information

Ramaco Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ramaco Resources, Inc.
  • Ticker: METC
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Steel
  • Sector: Materials
  • Market Cap: US$93.542m
  • Shares outstanding: 42.71m
  • Website: https://www.ramacoresources.com

Number of Employees


Location

  • Ramaco Resources, Inc.
  • 250 West Main Street
  • Suite 1800
  • Lexington
  • Kentucky
  • 40507
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
METCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2017
5R0DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2017

Biography

Ramaco Resources, Inc. produces and sells metallurgical coal The company’s development portfolio includes the Elk Creek project consisting of approximately 20,552 acres of controlled mineral and 24 seams l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 00:19
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.