Warrior Met Coal
Market Cap
US$1.1b
Last Updated
2020/01/23 01:07 UTC
Data Sources
Company Financials +
Executive Summary
Warrior Met Coal, Inc. produces and exports metallurgical coal for the steel industry.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -27.5% per year for the next 3 years
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
Share Price & News
How has Warrior Met Coal's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HCC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-7.8%
HCC
-2.6%
US Metals and Mining
0.6%
US Market
1 Year Return
-17.2%
HCC
11.8%
US Metals and Mining
24.6%
US Market
Return vs Industry: HCC underperformed the US Metals and Mining industry which returned 17.5% over the past year.
Return vs Market: HCC underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| HCC | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.8% | -2.6% | 0.6% |
| 30 Day | 5.0% | -2.8% | 3.0% |
| 90 Day | -2.9% | 7.5% | 10.6% |
| 1 Year | -3.6%-17.2% | 15.1%11.8% | 27.3%24.6% |
| 3 Year | n/a | 0.8%-4.5% | 50.5%40.8% |
| 5 Year | n/a | 35.9%25.3% | 78.9%59.1% |
Price Volatility Vs. Market
How volatile is Warrior Met Coal's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
If You Had Bought Warrior Met Coal (NYSE:HCC) Shares A Year Ago You'd Have A Total Return Of -3.8%2 weeks ago | Simply Wall St
Is Warrior Met Coal, Inc. (NYSE:HCC) Trading At A 50% Discount?4 weeks ago | Simply Wall St
How Much Are Warrior Met Coal, Inc. (NYSE:HCC) Insiders Taking Off The Table?Valuation
Is Warrior Met Coal undervalued compared to its fair value and its price relative to the market?
48.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HCC ($22.76) is trading below our estimate of fair value ($41.15)
Significantly Below Fair Value: HCC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HCC is good value based on its PE Ratio (1.8x) compared to the Metals and Mining industry average (11.4x).
PE vs Market: HCC is good value based on its PE Ratio (1.8x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: HCC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HCC is good value based on its PB Ratio (1.6x) compared to the US Metals and Mining industry average (1.6x).
Next Steps
Future Growth
How is Warrior Met Coal forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-27.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HCC's earnings are forecast to decline over the next 3 years (-27.5% per year).
Earnings vs Market: HCC's earnings are forecast to decline over the next 3 years (-27.5% per year).
High Growth Earnings: HCC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HCC's revenue is expected to decline over the next 3 years (-7.4% per year).
High Growth Revenue: HCC's revenue is forecast to decline over the next 3 years (-7.4% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HCC's Return on Equity is forecast to be low in 3 years time (17.9%).
Next Steps
Past Performance
How has Warrior Met Coal performed over the past 5 years?
68.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HCC has high quality earnings.
Growing Profit Margin: HCC's current net profit margins (46%) are higher than last year (33.5%).
Past Earnings Growth Analysis
Earnings Trend: HCC's earnings have grown significantly by 68.7% per year over the past 5 years.
Accelerating Growth: HCC's earnings growth over the past year (56.1%) is below its 5-year average (68.7% per year).
Earnings vs Industry: HCC earnings growth over the past year (56.1%) exceeded the Metals and Mining industry -7.6%.
Return on Equity
High ROE: HCC's Return on Equity (87.8%) is considered outstanding.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Warrior Met Coal's financial position?
Financial Position Analysis
Short Term Liabilities: HCC's short term assets ($462.9M) exceed its short term liabilities ($150.2M).
Long Term Liabilities: HCC's short term assets ($462.9M) exceed its long term liabilities ($453.5M).
Debt to Equity History and Analysis
Debt Level: HCC's debt to equity ratio (45.4%) is considered high.
Reducing Debt: Insufficient data to determine if HCC's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HCC's debt is well covered by operating cash flow (188.5%).
Interest Coverage: HCC's interest payments on its debt are well covered by EBIT (16.4x coverage).
Balance Sheet
Inventory Level: HCC has a high level of physical assets or inventory.
Debt Coverage by Assets: HCC's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is Warrior Met Coal's current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HCC's dividend (0.88%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: HCC's dividend (0.88%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HCC has been paying a dividend for less than 10 years.
Growing Dividend: HCC has only been paying a dividend for 3 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (1.6%), HCC's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HCC's dividends in 3 years are forecast to be covered by earnings (64.3% payout ratio).
Next Steps
Management
What is the CEO of Warrior Met Coal's salary, the management and board of directors tenure and is there insider trading?
3.8yrs
Average management tenure
CEO
Walt Scheller (58yo)
3.8yrs
Tenure
US$3,242,547
Compensation
Mr. Walter J. Scheller III, also known as Walt, has been Chief Executive Officer at Warrior Met Coal, LLC since March 31, 2016. Mr. Scheller served as the Chief Executive Officer at Walter Energy, Inc. fro ...
CEO Compensation Analysis
Compensation vs Market: Walt's total compensation ($USD3.24M) is about average for companies of similar size in the US market ($USD2.53M).
Compensation vs Earnings: Walt's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.8yrs
Average Tenure
48yo
Average Age
Experienced Management: HCC's management team is considered experienced (3.8 years average tenure).
Board Age and Tenure
3.3yrs
Average Tenure
56.5yo
Average Age
Experienced Board: HCC's board of directors are considered experienced (3.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Chief Financial Officer |
| Shares | 1,200 |
| Max Price | US$22.22 |
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer & Controller |
| Shares | 8,329 |
| Max Price | US$27.44 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 34,000 |
| Max Price | US$28.20 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Walt Scheller (58yo)
CEO & Director
- Tenure: 3.8yrs
- Compensation: US$3.24m
Dale Boyles (58yo)
Chief Financial Officer
- Tenure: 3yrs
- Compensation: US$1.42m
Jack Richardson (57yo)
Chief Operating Officer
- Tenure: 3.8yrs
- Compensation: US$1.79m
Brian Chopin (36yo)
Chief Accounting Officer & Controller
- Tenure: 3.8yrs
Kelli Gant (47yo)
Chief Administrative Officer & Secretary
- Tenure: 3.8yrs
- Compensation: US$1.09m
Phillip Monroe (48yo)
Vice President of Legal
- Tenure: 1.8yrs
- Compensation: US$851.32k
Charles Lussier (44yo)
Senior Vice President of Sales & Marketing
- Tenure: 1.8yrs
Board Members
J. Harvey (68yo)
Lead Independent Director
- Tenure: 1.9yrs
- Compensation: US$144.99k
Alan Schumacher (72yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$144.99k
Gareth Turner (55yo)
Independent Director
- Tenure: 3.8yrs
Walt Scheller (58yo)
CEO & Director
- Tenure: 3.8yrs
- Compensation: US$3.24m
Doug Williams (55yo)
Chairman of the Board
- Tenure: 3.8yrs
- Compensation: US$746.39k
Ana Amicarella (52yo)
Independent Director
- Tenure: 1.4yrs
Company Information
Warrior Met Coal, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Warrior Met Coal, Inc.
- Ticker: HCC
- Exchange: NYSE
- Founded: 2015
- Industry: Steel
- Sector: Materials
- Market Cap: US$1.105b
- Shares outstanding: 51.07m
- Website: https://warriormetcoal.com
Number of Employees
Location
- Warrior Met Coal, Inc.
- 16243 Highway 216
- Brookwood
- Alabama
- 35444
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HCC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2017 |
| WJ4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2017 |
Biography
Warrior Met Coal, Inc. produces and exports metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production. Warrior Met Coal, Inc. was founded in 2015 and is headquartered in Brookwood, Alabama.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 01:07 |
| End of Day Share Price | 2020/01/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.