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Warrior Met Coal, Inc. (HCC) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Basic Materials · Coking Coal

Sell if holding. At $85.01, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Commodity cycle peak: fwd P/E 11.5× (below 12) + fwd/trail 0.35× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Commodity: steelmaking coal.

Warrior Met Coal is a US-based premium hard coking coal producer operating three Alabama underground mines (Mine No. 4, Mine No. 7, Blue Creek), producing 9.3 million metric tons of steelmaking coal in 2025. Revenue is entirely from HCC sales to blast furnace steel producers in... Read more

$85.01+7.3% A.UpsideScore 6.3/10#1 of 3 Coking Coal
QualityF-score8 / 9FCF yield-3.86%
IncomeYield0.37%(5y avg 0.62%)Payout12.26%sustainable
Stop $79.06Target $91.20(analyst − 13%)A.R:R 0.8:1
Analyst target$104.83+23.3%6 analysts
$91.20our TP
$85.01price
$104.83mean
$120

Sell if holding. At $85.01, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Commodity cycle peak: fwd P/E 11.5× (below 12) + fwd/trail 0.35× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Commodity: steelmaking coal. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 6.3/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear). Fails on favorable risk/reward ratio and materials cycle peak fwd=11.5x,ratio=0.35x. Suitability: aggressive.

Recent Developments — Warrior Met Coal, Inc.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Attractive valuation
Strong growth profile
Risks
Commodity cycle peak: fwd P/E 11.5× (below 12) + fwd/trail 0.35× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.
Concentration risk — Commodity: steelmaking coal
Concentration risk — Customer: top-5 customers (56.0%)

Key Metrics

P/E (TTM)32.8
P/E (Fwd)11.5
Mkt Cap$4.5B
EV/EBITDA13.2
Profit Mgn9.3%
ROE6.4%
Rev Growth54.0%
Beta0.63
Dividend0.37%
Rating analysts12

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C1.44bearish
IV54%elevated

Concentration Risks(10-K Item 1A)

  • HIGHCommoditysteelmaking coal
    10-K Item 1A: 'Substantially all of our revenues are derived from the sale of steelmaking coal and our business may suffer from a substantial or extended decline in steelmaking coal pricing and demand'
  • HIGHCustomertop-5 customers56%
    10-K Item 1A: 'For the year ended December 31, 2025, we derived approximately 56% of our total sales revenues from our five largest customers.'

Material Events(8-K, last 90d)

  • 2026-04-21Item 5.02LOW
    Warrior Met Coal shareholders approved the 2026 Equity Incentive Plan at the April 20, 2026 Annual Meeting; plan was adopted by Board on Feb 10, 2026 and adds new equity compensation capacity.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 ceiling hit

GatesA.R:R 0.8 < 1.5@spotMATERIALS CYCLE PEAK fwd=11.5x,ratio=0.35xMomentum 5.0<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.0>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARSuitability: Aggressive
RSI
38 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $79.01Resistance $91.69

Price Targets

$79
$91
A.Upside+7.3%
A.R:R0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! NEWS_MOD=-1: HOLD_IF_HOLDING → SELL_IF_HOLDING
! Reward/Risk 0.8:1 at current price — below 1.5:1 minimum
! MATERIALS_CYCLE_PEAK:fwd=11.5x,ratio=0.35x

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-05 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is HCC stock a buy right now?

Sell if holding. At $85.01, A.R:R 0.8:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Commodity cycle peak: fwd P/E 11.5× (below 12) + fwd/trail 0.35× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Commodity: steelmaking coal. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $79.06. Score 6.3/10, moderate confidence.

What is the HCC stock price target?

Take-profit target: $91.20 (+7.3% upside). Prior stop was $79.06. Stop-loss: $79.06.

What are the risks of investing in HCC?

Commodity cycle peak: fwd P/E 11.5× (below 12) + fwd/trail 0.35× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Concentration risk — Commodity: steelmaking coal; Concentration risk — Customer: top-5 customers (56.0%).

Is HCC overvalued or undervalued?

Warrior Met Coal, Inc. trades at a P/E of 32.8 (forward 11.5). TrendMatrix value score: 7.2/10. Verdict: Sell.

What do analysts say about HCC?

12 analysts cover HCC with a consensus score of 3.9/5. Average price target: $105.

What does Warrior Met Coal, Inc. do?Warrior Met Coal is a US-based premium hard coking coal producer operating three Alabama underground mines (Mine No. 4,...

Warrior Met Coal is a US-based premium hard coking coal producer operating three Alabama underground mines (Mine No. 4, Mine No. 7, Blue Creek), producing 9.3 million metric tons of steelmaking coal in 2025. Revenue is entirely from HCC sales to blast furnace steel producers in Asia (48%), Europe (37%), South America (14%), and US (1%). Top 5 customers represent approximately 56% of total sales revenues.

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