* Note: Prices are in Million (M) USD.
Description:
Warrior Met Coal, Inc. produces and exports non-thermal metallurgical coal for the steel industry. The company is headquartered in Brookwood, Alabama.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $492 M
Debt : $173 M
EBITDA : $253 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: ENERGY & TRANSPORTATION
Industry: BITUMINOUS COAL & LIGNITE MINING
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.71
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $250 M
Average Revenue: $1,151 M
Revenue Converted To Free Cash FLow(%): 22%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 175.98%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,525 M
Revenue 4 Years Ago (2020-12-31): $783 M
Last 5 Years Average Revenue Growth: 19%
Since Revenue Growth is between 15 - 20, 4 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $52 M
Share Count 5 Years Ago (2020-12-31): $51 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $10.02
Trailing 12-Month Earnings Per Share (EPS): $1.80
Average Earnings Per Share (EPS): $5.91
Dividend Per Share (DPS): $0
Payout Ratio: 5%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 36%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $51
52-Week Low: $38
Threshold Price (15% Above 52-Week Low): $44
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,997 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 28 points to above Warrior Met Coal Inc (HCC) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 4, Fair Value PE 15, Industry Based PE is 10 and Growth based PE is 15. Based on these all values average assigned is 11.00.
Value-Trades has assined P/E value 11.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.91.
The fair value of Warrior Met Coal Inc (HCC) stock should be (11.00 x $5.91) = $65.01
