Warrior Met Coal (HCC) vs Ramaco Resources, Inc. (METCB)

Warrior Met Coal and Ramaco Resources, Inc. are both Coking Coal companies. Warrior Met Coal is the larger, with a market value of $4.7B against $682.3M — 6.9× the size. Ramaco 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 −17.7%. Warrior Met Coal has the higher net margin (13.1% vs −11.2%) and the higher return on invested capital (6.50% vs −8.19%). Only Warrior Met Coal pays a dividend (0.34%). Across the 19 metrics below, Warrior Met Coal leads on 14 and Ramaco Resources, Inc. on 5.

Valuation

Metric HCC METCB Coking Coal median
P/E 22.37 n/m —
P/S 2.93 0.56 1.11
P/B 2.15 0.77 1.50
Price to free cash flow 315.76 n/m —
EV/EBITDA 10.92 n/m —
EV/Sales 2.88 0.91 1.20
Earnings yield 4.47% (23.99%) (4.21%)
Free cash flow yield 0.32% (40.24%) (3.79%)

Profitability

Metric HCC METCB Coking Coal median
Gross margin 30.53% 14.29% 14.29%
Operating margin 13.64% (14.09%) (8.39%)
Net margin 13.05% (11.15%) (2.56%)
Free cash flow margin 0.93% (22.49%) (11.28%)
Return on equity 10.04% (15.89%) (5.62%)
Return on assets 7.91% (6.76%) (2.61%)
Return on invested capital 6.50% (8.19%) (5.40%)

Growth

Metric HCC METCB Coking Coal median
Revenue growth (TTM) 37.48% (17.65%) (15.29%)
EPS growth (last fiscal year) (77.45%) (1,000.00%) (139.85%)
Revenue growth, 5-year CAGR 10.85% 26.01% 9.68%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HCC METCB Coking Coal median
Debt to equity 0.10 1.23 0.63
Current ratio 3.93 4.23 3.67
Net debt to EBITDA (0.46) 1.43 1.43

Dividend

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

Size

Metric HCC METCB Coking Coal median
Market cap 4.74b 682.34m 754.94m

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