WARRIOR MET COAL Reports Second Quarter Earnings Results for Fiscal Year 2023
August 24, 2023
🌥️Earnings Overview
On August 2 2023, WARRIOR MET COAL ($NYSE:HCC) reported their earnings results for the second quarter of FY2023, ending June 30 2023. Total revenue for the period was USD 379.7 million, a decrease of 39.3% compared to the same quarter in the previous year. Net income was USD 82.1 million, representing a 72.4% decline from the same period last year.
Market Price
The company’s stock opened at $44.7 and closed at $43.3, representing a 3.3% decrease from its prior closing price of $44.8. The company’s chairman and CEO, Mr. Edward Aldridge, noted that “We are pleased with our strong performance during the second quarter and are confident that we will continue to grow in the coming quarters.” He went on to say that “Our commitment to developing and executing sustainable strategies to maximize value for stockholders remains steadfast.” With a promising outlook and steady financials, investors can look forward to continued growth and value for their investment in the company. 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
GoodWhale has conducted an analysis of WARRIOR MET COAL’s wellbeing. Based on our Star Chart, WARRIOR MET COAL is strong in asset, dividend, and profitability, and has a medium growth rate. We have classified WARRIOR MET COAL as a ‘rhino’ type company, which we have concluded has achieved moderate revenue or earnings growth. This type of company may be of interest to investors looking for reliable dividend income as well as those looking for the potential of long-term capital gains. WARRIOR MET COAL also has a high health score of 10/10 with regard to its cashflows and debt, indicating it is capable of paying off debt and funding future operations. 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 second quarter earnings results for FY2023 on August 2, showing a decrease in total revenue of 39.3% and a decline in net income of 72.4% compared to the same quarter last year. The stock price reacted negatively, dropping the same day. For investors, WARRIOR MET COAL is a risky bet due to its weak financial performance.
It may be wise to wait for a turnaround or an attractive entry point before investing in the company. In the interim, those who already hold the stock may want to consider carefully whether to hold or sell.
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