Warrior Met Coal (HCC) vs. Its Peers Financial Analysis

Warrior Met Coal (NYSE:HCC) is one of 1,988 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its peers? We will compare Warrior Met Coal to related businesses based on the strength of its institutional ownership, profitability, dividends, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

92.3% of Warrior Met Coal shares are held by institutional investors. Comparatively, 15.8% of shares of all “Metals & Mining” companies are held by institutional investors. 2.1% of Warrior Met Coal shares are held by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Warrior Met Coal and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warrior Met Coal	0	3	4	0	2.57
Warrior Met Coal Competitors	6314	22388	32015	1765	2.47

Warrior Met Coal presently has a consensus target price of $102.60, indicating a potential downside of 6.83%. As a group, “Metals & Mining” companies have a potential upside of 18.55%. Given Warrior Met Coal’s peers higher possible upside, analysts plainly believe Warrior Met Coal has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Warrior Met Coal and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Warrior Met Coal	$1.68 billion	$57.00 million	26.47
Warrior Met Coal Competitors	$5.05 billion	$273.14 million	-24.68

Warrior Met Coal’s peers have higher revenue and earnings than Warrior Met Coal. Warrior Met Coal is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Warrior Met Coal and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warrior Met Coal	13.05%	10.02%	7.84%
Warrior Met Coal Competitors	-1,161,736,352,322,426,600.00%	-14.42%	-2.03%

Dividends

Warrior Met Coal pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Warrior Met Coal pays out 7.7% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 8.7% and pay out 10.6% of their earnings in the form of a dividend. Warrior Met Coal has raised its dividend for 1 consecutive years.

Risk & Volatility

Warrior Met Coal has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Warrior Met Coal’s peers have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Summary

Warrior Met Coal beats its peers on 8 of the 15 factors compared.

About Warrior Met Coal

Warrior Met Coal, Inc. produces and exports non-thermal 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 incorporated in 2015 and is headquartered in Brookwood, Alabama.