HCCWarrior Met Coal, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.4×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HCC?
Warrior Met Coal, Inc. earns 8.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.55 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Basic Materials median 9.9% · 12 months to Q2 2026
- Cash conversion
- 1.37×
Cash conversion · 7.13× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.48%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −3.5% |
| FY2021 | 23% |
| FY2022 | 46% |
| FY2023 | 32% |
| FY2024 | 17% |
| FY2025 | 3.5% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 14%
- Net margin12 months to Q2 2026
- 13%
- Free cash flow margin
- 0.92%
- Revenue, trailing twelve months
- $1.68B
- Free cash flow, trailing twelve months
- $15M
- Net income, trailing twelve months
- $219M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.