Warrior Met Coal, Inc. [NYSE:HCC]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For Warrior Met Coal, Inc. [HCC], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in December. On average, stock market experts give HCC an Outperform rating. The average 12-month price forecast for this stock is $31.67, with the high estimate being $37.00, the low estimate being $29.00 and the median estimate amounting to $32.00. This is compared to its latest closing price of $24.24.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Warrior Met Coal, Inc. [HCC] is sitting at 2.40. This is compared to 1 month ago, when its average rating was 2.50.
For the quarter ending in Sep-18 Warrior Met Coal, Inc. [HCC] generated $0.27 billion in sales. That’s 0.26% lower than the average estimate of $0.27 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on Thu 21 Feb (In 39 Days).
Fundamental Analysis of Warrior Met Coal, Inc. [HCC]
Now let’s turn to look at profitability: with a current Operating Margin for Warrior Met Coal, Inc. [HCC] sitting at +37.32 and its Gross Margin at +40.44, this company’s Net Margin is now 33.40%. These measurements indicate that Warrior Met Coal, Inc. [HCC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 57.46, and its Return on Invested Capital has reached 55.80%. Its Return on Equity is 78.05, and its Return on Assets is 44.23. These metrics all suggest that Warrior Met Coal, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Warrior Met Coal, Inc. [HCC] has generated a Total Debt to Total Equity ratio of 83.75. Similarly, its Total Debt to Total Capital is 45.58, while its Total Debt to Total Assets stands at 31.16. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 83.03, and its Long-Term Debt to Total Capital is 45.19. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 2.95 and its Total Debt to EBITDA Value is 0.67. The Enterprise Value to Sales for this firm is now 1.20, and its Total Debt to Enterprise Value stands at 0.21. Warrior Met Coal, Inc. [HCC] has a Price to Book Ratio of 3.24, a Price to Cash Flow Ratio of 3.06 and P/E Ratio of 3.09. These metrics all suggest that Warrior Met Coal, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Warrior Met Coal, Inc. [HCC] earns $863,436 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 11.46 and its Total Asset Turnover is 1.14. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.80 and its Current Ratio is 2.30. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Warrior Met Coal, Inc. [HCC] has 54.03M shares outstanding, amounting to a total market cap of $1.32B. Its stock price has been found in the range of 20.23 to 31.65. At its current price, it has moved by -22.75% from its 52-week high, and it has moved 20.88% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.29. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Warrior Met Coal, Inc. [HCC] a Reliable Buy?
Shares of Warrior Met Coal, Inc. [HCC], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.