Alpha Metallurgical Resources, Inc. (AMR) vs Warrior Met Coal (HCC)

Alpha Metallurgical Resources, Inc. and Warrior Met Coal are both Coking Coal companies. Warrior Met Coal is the larger, with a market value of $4.7B against $2.2B — 2.1× the size. Alpha Metallurgical Resources, Inc. has negative trailing earnings, so its P/E is not meaningful; Warrior Met Coal trades at 22.4×. Warrior Met Coal grew revenue faster over the last twelve months: 37.5% against −12.9%. Warrior Met Coal has the higher net margin (13.1% vs −2.23%) and the higher return on invested capital (6.50% vs −2.39%). Across the 19 metrics below, Warrior Met Coal leads on 14 and Alpha Metallurgical Resources, Inc. on 5.

Valuation

Metric AMR HCC Coking Coal median
P/E n/m 22.37 —
P/S 1.12 2.93 1.11
P/B 1.54 2.15 1.50
Price to free cash flow n/m 315.76 —
EV/EBITDA 13.87 10.92 —
EV/Sales 0.96 2.88 1.20
Earnings yield (1.97%) 4.47% (4.21%)
Free cash flow yield (0.05%) 0.32% (3.79%)

Profitability

Metric AMR HCC Coking Coal median
Gross margin 10.02% 30.53% 14.29%
Operating margin (2.17%) 13.64% (8.39%)
Net margin (2.23%) 13.05% (2.56%)
Free cash flow margin (0.06%) 0.93% (11.28%)
Return on equity (2.96%) 10.04% (5.62%)
Return on assets (1.99%) 7.91% (2.61%)
Return on invested capital (2.39%) 6.50% (5.40%)

Growth

Metric AMR HCC Coking Coal median
Revenue growth (TTM) (12.92%) 37.48% (15.29%)
EPS growth (last fiscal year) (133.26%) (77.45%) (139.85%)
Revenue growth, 5-year CAGR 8.50% 10.85% 9.68%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AMR HCC Coking Coal median
Debt to equity 0.01 0.10 0.63
Current ratio 3.41 3.93 3.67
Net debt to EBITDA (2.86) (0.46) 1.43

Dividend

Metric AMR HCC Coking Coal median
Dividend yield — 0.34% 0.00%
Payout ratio — 0.08 —

Size

Metric AMR HCC Coking Coal median
Market cap 2.21b 4.74b 754.94m

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