Loading...

Warrior Met Coal

NYSE:HCC
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HCC
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Warrior Met Coal, Inc. produces and exports metallurgical coal for the steel industry. The last earnings update was 62 days ago. More info.


Add to Portfolio Compare Print
HCC Share Price and Events
7 Day Returns
3.4%
NYSE:HCC
-3.6%
US Metals and Mining
-0.1%
US Market
1 Year Returns
39%
NYSE:HCC
-22.4%
US Metals and Mining
7.6%
US Market
HCC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Warrior Met Coal (HCC) 3.4% 11.2% 21.6% 39% - -
US Metals and Mining -3.6% 0.4% 6% -22.4% 15% -11.3%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • HCC outperformed the Metals and Mining industry which returned -22.4% over the past year.
  • HCC outperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
HCC
Industry
5yr Volatility vs Market

HCC Value

 Is Warrior Met Coal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Warrior Met Coal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Warrior Met Coal.

NYSE:HCC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HCC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.04 (1 + (1- 21%) (28.63%))
1.185
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.185 * 5.96%)
9.79%

Discounted Cash Flow Calculation for NYSE:HCC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Warrior Met Coal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HCC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.79%)
2019 356.60 Analyst x5 324.80
2020 267.60 Analyst x5 222.00
2021 242.00 Analyst x3 182.86
2022 168.50 Analyst x2 115.97
2023 11.00 Analyst x1 6.90
2024 7.32 Est @ -33.47% 4.18
2025 5.66 Est @ -22.61% 2.95
2026 4.81 Est @ -15.01% 2.28
2027 4.35 Est @ -9.69% 1.88
2028 4.09 Est @ -5.96% 1.61
Present value of next 10 years cash flows $865.43
NYSE:HCC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4.09 × (1 + 2.73%) ÷ (9.79% – 2.73%)
$59.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $59.49 ÷ (1 + 9.79%)10
$23.38
NYSE:HCC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $865.43 + $23.38
$888.80
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $888.80 / 51.56
$17.24
NYSE:HCC Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.24
Current discount Discount to share price of $31.77
= -1 x ($31.77 - $17.24) / $17.24
-84.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Warrior Met Coal is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Warrior Met Coal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Warrior Met Coal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HCC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $13.19
NYSE:HCC Share Price ** NYSE (2019-04-23) in USD $31.77
United States of America Metals and Mining Industry PE Ratio Median Figure of 43 Publicly-Listed Metals and Mining Companies 9.26x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Warrior Met Coal.

NYSE:HCC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HCC Share Price ÷ EPS (both in USD)

= 31.77 ÷ 13.19

2.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Warrior Met Coal is good value based on earnings compared to the US Metals and Mining industry average.
  • Warrior Met Coal is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Warrior Met Coal's expected growth come at a high price?
Raw Data
NYSE:HCC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 2.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-48.2%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 23 Publicly-Listed Metals and Mining Companies 0.69x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:HCC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 2.41x ÷ -48.2%

-0.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Warrior Met Coal earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Warrior Met Coal's assets?
Raw Data
NYSE:HCC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.80
NYSE:HCC Share Price * NYSE (2019-04-23) in USD $31.77
United States of America Metals and Mining Industry PB Ratio Median Figure of 101 Publicly-Listed Metals and Mining Companies 1.41x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:HCC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HCC Share Price ÷ Book Value per Share (both in USD)

= 31.77 ÷ 13.80

2.3x

* Primary Listing of Warrior Met Coal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Warrior Met Coal is overvalued based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Warrior Met Coal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Warrior Met Coal has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HCC Future Performance

 How is Warrior Met Coal expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-48.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Warrior Met Coal expected to grow at an attractive rate?
  • Warrior Met Coal's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Warrior Met Coal's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Warrior Met Coal's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HCC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HCC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -48.2%
NYSE:HCC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -7.9%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 2.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HCC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HCC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 988 294 1
2022-12-31 1,004 293 1
2021-12-31 1,065 358 181 6
2020-12-31 1,091 382 187 7
2019-12-31 1,221 490 298 7
NYSE:HCC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,380 559 697
2018-09-30 1,256 520 420
2018-06-30 1,294 534 487
2018-03-31 1,330 563 525
2017-12-31 1,164 435 455
2017-09-30 1,083 355 392
2017-06-30 823 247 239
2017-03-31 552 56 59
2016-12-31 369 -50 -50
2016-09-30 273 -116 -202

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Warrior Met Coal's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Warrior Met Coal's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HCC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Warrior Met Coal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.54 5.09 2.67 4.00
2020-12-31 3.62 4.49 2.81 5.00
2019-12-31 5.72 6.61 5.07 5.00
NYSE:HCC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 13.19
2018-09-30 7.93
2018-06-30 9.19
2018-03-31 9.94
2017-12-31 8.62
2017-09-30 7.44
2017-06-30 4.53
2017-03-31 1.11
2016-12-31 -0.94
2016-09-30 -53.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Warrior Met Coal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Warrior Met Coal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Warrior Met Coal has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HCC Past Performance

  How has Warrior Met Coal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Warrior Met Coal's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Warrior Met Coal's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Warrior Met Coal's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Warrior Met Coal's earnings growth has not exceeded the US Metals and Mining industry average in the past year (53.1% vs 74%).
Earnings and Revenue History
Warrior Met Coal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Warrior Met Coal Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HCC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,379.81 696.79 36.63
2018-09-30 1,255.65 419.75 42.44
2018-06-30 1,294.00 486.88 44.32
2018-03-31 1,329.62 525.43 39.52
2017-12-31 1,163.69 455.05 36.45
2017-09-30 1,082.56 391.92 33.25
2017-06-30 823.49 238.56 28.52
2017-03-31 551.60 58.64 25.68
2016-12-31 369.02 -49.67 35.68
2016-09-30 273.40 -201.99 37.70
2015-12-31 544.73 -310.58 69.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Warrior Met Coal made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Warrior Met Coal used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Warrior Met Coal has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Warrior Met Coal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Warrior Met Coal has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HCC Health

 How is Warrior Met Coal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Warrior Met Coal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Warrior Met Coal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Warrior Met Coal's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Warrior Met Coal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Warrior Met Coal Company Filings, last reported 3 months ago.

NYSE:HCC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 712.61 468.99 223.08
2018-09-30 365.69 467.59 147.66
2018-06-30 314.87 468.12 72.59
2018-03-31 584.91 468.54 339.53
2017-12-31 413.02 345.91 52.97
2017-09-30 914.39 4.45 251.55
2017-06-30 797.12 5.16 173.29
2017-03-31 667.75 5.87 30.96
2016-12-31 752.97 6.57 167.55
2016-09-30 772.30 7.27 157.57
2015-12-31 -820.86 1,414.33 79.76
  • Warrior Met Coal's level of debt (65.8%) compared to net worth is high (greater than 40%).
  • Unable to establish if Warrior Met Coal's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (119.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.9x coverage).
X
Financial health checks
We assess Warrior Met Coal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Warrior Met Coal has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HCC Dividends

 What is Warrior Met Coal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.63%
Current annual income from Warrior Met Coal dividends. Estimated to be 3.31% next year.
If you bought $2,000 of Warrior Met Coal shares you are expected to receive $13 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Warrior Met Coal's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Warrior Met Coal's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HCC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HCC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.20 1.00
2022-12-31 0.20 1.00
2021-12-31 2.33 6.00
2020-12-31 0.20 4.00
2019-12-31 0.20 3.00
NYSE:HCC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.200 0.680
2018-10-23 0.200 0.795
2018-07-24 0.200 0.777
2018-04-03 0.200 0.761
2018-02-13 0.200 0.665
2017-10-25 0.200 0.769
2017-07-31 0.200 0.814
2017-05-18 0.200 1.127

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Warrior Met Coal is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Warrior Met Coal is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Warrior Met Coal's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Warrior Met Coal's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Warrior Met Coal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Warrior Met Coal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Warrior Met Coal has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HCC Management

 What is the CEO of Warrior Met Coal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Walt Scheller
COMPENSATION $3,242,547
AGE 57
TENURE AS CEO 3 years
CEO Bio

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. from September 12, 2011 to March 31, 2016. Mr. Scheller served as the President and Chief Operating Officer of Jim Walter Resources, Inc.(alternate Name: New WEI 13, Inc.)a subsidiary of Walter Energy, Inc. from June 15, 2010 to September 2011. He joined Walter Energy from Peabody Energy Corporation. He served as the Senior Vice President and Group Executive of Colorado Operations at Peabody Energy Corp. since September 1, 2007. He served as Senior Vice President of Strategic Operations at Peabody Energy Corp. from June 8, 2006 to September 1, 2007 and its Senior Vice President of Operations Improvement until September 1, 2007. He was responsible for leading its continuous improvement initiatives and implementing standard operating procedures across Peabody operations. Mr. Scheller has nearly two decades of operations experience, served as Vice President of Northern Appalachia Gas Operations for CNX Gas Corp. Before that, Mr. Scheller served in a number of executive and operational roles with Consol Energy, Inc., served as Vice President- Operations. He previously served as Vice President and General Manager of Corporate Safety with a major U.S. coal producer and held executive management positions in the safety, operations and legal functions. Mr. Scheller has 33 years of experience in the Mining sector. He has been Director at Warrior Met Coal, LLC since March 31, 2016. He served as a Director at Walter Energy, Inc. from September 12, 2011 to March 31, 2016. He holds a Master's Degree in Business Administration from the University of Pittsburgh - Joseph M. Katz Graduate School of Business, a Law degree/JD from Duquesne University and a Bachelor's Degree in Mining Engineering from West Virginia University.

CEO Compensation
  • Walt's compensation has been consistent with company performance over the past year.
  • Walt's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Warrior Met Coal management team in years:

3
Average Tenure
47
Average Age
  • The tenure for the Warrior Met Coal management team is about average.
Management Team

Walt Scheller

TITLE
CEO & Director
COMPENSATION
$3M
AGE
57
TENURE
3 yrs

Dale Boyles

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
57
TENURE
2.3 yrs

Jack Richardson

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
56
TENURE
3.1 yrs

Kelli Gant

TITLE
Chief Administrative Officer & Secretary
COMPENSATION
$1M
AGE
46
TENURE
3.1 yrs

Phillip Monroe

TITLE
General Counsel
COMPENSATION
$851K
AGE
47
TENURE
1.1 yrs

Brian Chopin

TITLE
Chief Accounting Officer & Controller
AGE
35
TENURE
3.1 yrs

Charles Lussier

TITLE
Senior Vice President of Sales & Marketing
AGE
43
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Warrior Met Coal board of directors in years:

2
Average Tenure
54
Average Age
  • The average tenure for the Warrior Met Coal board of directors is less than 3 years, this suggests a new board.
Board of Directors

Doug Williams

TITLE
Chairman of the Board
COMPENSATION
$746K
AGE
54
TENURE
3.1 yrs

Walt Scheller

TITLE
CEO & Director
COMPENSATION
$3M
AGE
57
TENURE
3 yrs

Gareth Turner

TITLE
Director
AGE
54
TENURE
3.1 yrs

Alan Schumacher

TITLE
Director
COMPENSATION
$145K
AGE
71
TENURE
2 yrs

Trevor Mills

TITLE
Director
AGE
51
TENURE
0.9 yrs

J. Harvey

TITLE
Lead Independent Director
COMPENSATION
$145K
AGE
67
TENURE
1.2 yrs

Ana Amicarella

TITLE
Director
COMPENSATION
$75K
AGE
51
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. May 18 Sell The Blackstone Group L.P. Company 10. May 18 10. May 18 -1,869,679 $24.20 $-45,246,232
10. May 18 Sell Franklin Resources, Inc. Company 08. May 18 08. May 18 -1,461,423 $24.20 $-35,366,437
X
Management checks
We assess Warrior Met Coal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Warrior Met Coal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HCC News

Simply Wall St News

Did Changing Sentiment Drive Warrior Met Coal's Share Price Down By 12%?

(NYSE:HCC) share price has gained some 32% in the last three months. … Even though the Warrior Met Coal share price is down over the year, its EPS actually improved. … The divergence between the EPS and the share price is quite notable, during the year.

Simply Wall St -

What Investors Should Know About Warrior Met Coal, Inc.'s (NYSE:HCC) Financial Strength

(NYSE:HCC) with its market cap of US$1.4b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Investors Are Undervaluing Warrior Met Coal Inc (NYSE:HCC) By 45.15%

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Do You Know What Warrior Met Coal Inc's (NYSE:HCC) P/E Ratio Means?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Warrior Met Coal has a price to earnings ratio of 2.98, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Investors Are Undervaluing Warrior Met Coal Inc (NYSE:HCC) By 22.16%

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should You Worry About Warrior Met Coal Inc's (NYSE:HCC) CEO Salary Level?

Walt Scheller is the CEO of Warrior Met Coal Inc (NYSE:HCC), which has recently grown to a market capitalization of US$1.48b. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … See our latest analysis for Warrior Met Coal

Simply Wall St -

Should You Be Tempted To Buy Warrior Met Coal Inc (NYSE:HCC) Because Of Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Warrior Met Coal Inc (NYSE:HCC). … Warrior Met Coal Inc (NYSE:HCC) is trading with a trailing P/E of 2.6x, which is lower than the industry average of 12.5x.

Simply Wall St -

Warrior Met Coal Inc's (NYSE:HCC) Sustainability In Question?

Warrior Met Coal Inc (NYSE:HCC) has been on my radar for a while, and the biggest I see is around the sustainability of the business going forward. … Although HCC seems to be managing its financials well, and appears to be currently undervalued, meaning we can buy its shares at a good price, I would rather buy an outstanding business at an OK price. … Furthermore, comparing HCC's current share price to its peers based on its industry and earnings level, it's undervalued by 360.39%, with a PE ratio of 2.69x vs.

Simply Wall St -

Is Warrior Met Coal Inc's (NYSE:HCC) ROE Of 110.17% Sustainable?

Check out our latest analysis for Warrior Met Coal What you must know about ROE Return on Equity (ROE) weighs Warrior Met Coal’s profit against the level of its shareholders’ equity. … For now, let’s just look at the cost of equity number for Warrior Met Coal, which is 11.67%. … Warrior Met Coal’s above-industry ROE is encouraging, and is also in excess of its cost of equity.

Simply Wall St -

Estimating The Fair Value Of Warrior Met Coal Inc (NYSE:HCC)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Warrior Met Coal Inc (NYSE:HCC) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $302.67 $123.00 $99.50 $116.42 $135.04 Source Analyst x3 Analyst x3 Analyst x2 Extrapolated @ (17%, capped from 56.5%) Extrapolated @ (16%, capped from 56.5%) Present Value Discounted @ 11.48% $271.51 $98.98 $71.82 $75.38 $78.44 Present Value of 5-year Cash Flow (PVCF)= $596 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $135 × (1 + 2.5%) ÷ (11.5% – 2.5%) = $1,536 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $1,536 / ( 1 + 11.5%)5 = $892 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $1,488.

Simply Wall St -

HCC Company Info

Description

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.

Details
Name: Warrior Met Coal, Inc.
HCC
Exchange: NYSE
Founded: 2015
$1,637,913,056
51,555,337
Website: http://warriormetcoal.com
Address: Warrior Met Coal, Inc.
16243 Highway 216,
Brookwood,
Alabama, 35444,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HCC Common Stock New York Stock Exchange US USD 13. Apr 2017
DB WJ4 Common Stock Deutsche Boerse AG DE EUR 13. Apr 2017
Number of employees
Current staff
Staff numbers
1,395
Warrior Met Coal employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 00:57
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.