Warrior Met Coal, LLC engages in mining and exporting metallurgical coal for the steel industry. The company sells its metallurgical coal to a diversified customer base of blast furnace steel producers primarily in Europe and South America. Warrior Met Coal, LLC was founded in 2015 and is headquartered in Brookwood, Alabama.
HCC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Warrior Met Coal Inc. To summarize, we found that Warrior Met Coal Inc ranked in the 73th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Warrior Met Coal Inc ended up being:
The compound growth rate in the free cash flow of Warrior Met Coal Inc over the past 2.21 years is -0.05%; that's better than only 20.25% of cash flow producing equities in the Basic Materials sector, where it is classified.
Warrior Met Coal Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 8.53% of tickers in our DCF set.
HCC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 8.53% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Warrior Met Coal Inc? See NEM, DOOR, ICL, HUN, and IAG.
Hedge funds don't get the respect they used to get. Nowadays investors prefer passive funds over actively managed funds. One thing they don't realize is that 100% of the passive funds didn't see the coronavirus recession coming, but a lot of hedge funds did. Even we published an article near the end of February and […]
LOS ANGELES--(BUSINESS WIRE)--Tutor Perini Corporation (NYSE: TPC), a leading civil, building and specialty construction company, announced today that its subsidiary, Frontier-Kemper Constructors, has been awarded a contract valued at approximately $63.7 million by Warrior Met Coal BCE, LLC for the Blue Creek Energy Mine #1 project in Tuscaloosa County, Alabama. The scope of work includes the excavation and construction of the mine shaft, mine slope, slope hoist and service hoist. The contract
BROOKWOOD, Ala.--(BUSINESS WIRE)--Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) today announced results for the third quarter of 2019. Warrior is the leading dedicated U.S. based producer and exporter of high quality metallurgical (“met”) coal for the global steel industry. Warrior reported third quarter 2019 net income of $45.0 million, or $0.87 per diluted share, compared to net income of $52.6 million, or $1.00 per diluted share, in the third quarter of 2018. Adjusted net in