Warrior Met Coal Reports FY2023 Q2 Earnings Results on August 2nd
August 27, 2023
🌥️Earnings Overview
On August 2 2023, WARRIOR MET COAL ($NYSE:HCC) reported their financial results for the second quarter of the 2023 fiscal year, ending June 30. Total revenue for the quarter amounted to USD 379.7 million, a decrease of 39.3% compared to the same period in the prior year. Net income for Q2 2023 was USD 82.1 million, a decline of 72.4% from the year before.
Share Price
On Wednesday, August 2nd, WARRIOR MET COAL reported their earnings results for the second quarter of FY2023. At the start of the trading day, the stock opened at $44.7 and closed at $43.3, a decrease of 3.3% from its previous closing price of 44.8. In addition to the financial report, WARRIOR MET COAL also commented on their outlook for the remainder of the fiscal year, noting that their production and sales are expected to remain strong.
The company also announced plans to invest in new mining technologies to further improve their efficiency and increase their overall output. With all these positive indicators, investors are optimistic that WARRIOR MET COAL can continue to post strong earnings in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HCC. More…
| Total Revenues | Net Income | Net Margin |
| 1.62k | 462.43 | 29.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HCC. More…
| Operations | Investing | Financing |
| 759.62 | -386.75 | -190.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HCC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.24k | 582.78 | 31.94 |
Key Ratios Snapshot
Some of the financial key ratios for HCC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.5% | 76.2% | 32.8% |
| FCF Margin | ROE | ROA |
| 26.4% | 20.6% | 14.8% |
Analysis
As GoodWhale, I took on the task of analyzing the fundamentals of WARRIOR MET COAL. After going through the Star Chart, I found that the company had a high health score of 10/10 with regards to its cashflows and debt. This score showed that WARRIOR MET COAL was in good shape and was capable of paying off its debt and funding future operations. From this analysis, I classified WARRIOR MET COAL as a ‘rhino’ type company, meaning it has achieved moderate revenue or earnings growth. This type of company may be attractive to investors seeking reliable dividends, asset value, and profitability. While growth may not be a priority, WARRIOR MET COAL is still strong in these areas and could be a great asset for an investor’s portfolio. More…
Peers
In the coal industry, Warrior Met Coal Inc faces competition from Tigers Realm Coal Ltd, Mongolian Mining Corp, and Shougang Fushan Resources Group Ltd. These companies are all major players in the industry, and each has its own strengths and weaknesses. Warrior Met Coal Inc must constantly evaluate its competitors in order to stay ahead in the market.
– Tigers Realm Coal Ltd ($ASX:TIG)
Tigers Realm Coal Ltd is a coal company with a market cap of 196M as of 2022. The company has a return on equity of 12.25%. Tigers Realm Coal Ltd is involved in the exploration, development, and production of thermal and coking coal in Russia.
– Mongolian Mining Corp ($SEHK:00975)
Mongolian Mining Corporation is a coal mining and exploration company operating in Mongolia. The company has a market cap of 1.89B as of 2022 and a Return on Equity of -3.82%. Mongolian Mining Corporation is engaged in the business of mining, processing and selling coal products in Mongolia. The company’s principal products are coking coal and thermal coal. Coking coal is used in the production of steel and is a key ingredient in the manufacturing of coke, a fuel used in blast furnaces. Thermal coal is used for power generation.
– Shougang Fushan Resources Group Ltd ($SEHK:00639)
Shougang Fushan Resources Group Ltd is a Chinese state-owned enterprise and one of the largest iron ore producers in the country. The company has a market cap of 11.97B as of 2022 and a return on equity of 21.21%. The company’s main business is the mining, beneficiation, and smelting of iron ore, as well as the production of downstream products such as steel.
Summary
WARRIOR MET COAL reported their FY2023 Q2 earnings results on August 2 2023, with total revenue of USD 379.7 million and net income of USD 82.1 million. This was a 39.3% and 72.4% decline respectively from the prior year, causing the stock price to fall on the same day. Investing in WARRIOR MET COAL is not recommended in the short-term due to the decreased revenues and profits, however medium-term investors can look for potential to capitalize on the stock when the company’s financials show signs of improvement. Analysts should monitor the company’s performance in upcoming quarters to observe if it is able to reverse its losses.
