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Hallador Energy (HNRG)
:HNRG
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Hallador Energy Company
(NASDAQ:HNRG)
47Neutral
Hallador Energy Company (HNRG) vs. S&P 500 (SPY)
Market Cap
$408.27M
Dividend YieldN/A
Average Volume (3M)427.50K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-36.61%
EPS Growth-122.92%
CountryUS
Employees936
SectorEnergy
Sector Strength73
IndustryFossil Fuels
Share Statistics
EPS (TTM)-0.59
Shares Outstanding42,617,107
10 Day Avg. Volume487,697
30 Day Avg. Volume427,495
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.86
Price to Cash Flow (P/CF)-7.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside77.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Hallador Energy Company Business Overview & Revenue Model
Company DescriptionHallador Energy Company (HNRG) is a diversified energy company primarily engaged in the production of coal. The company operates in the energy sector and focuses on the extraction, processing, and sale of coal primarily in the United States. Hallador Energy's core services include coal mining and sales, with operations centered in the Illinois Basin, known for its significant coal reserves.
How the Company Makes MoneyHallador Energy Company makes money primarily through the extraction and sale of coal. The company's revenue model is largely driven by coal production from its mining operations, where it sells both thermal and metallurgical coal to utility companies, industrial customers, and other coal consumers. Key revenue streams include long-term coal supply contracts and spot market sales. Additionally, the company may engage in strategic partnerships and alliances to enhance its coal distribution network and market reach. External factors such as coal demand, energy policies, and commodity prices also significantly impact its earnings.
Hallador Energy Company Financial Statement Overview
Summary
Hallador Energy Company is facing profitability and cash flow challenges. The income statement shows declining revenue and negative net income, while the balance sheet reflects improved capital structure with reduced leverage. However, cash flow issues persist with negative free cash flow and cash generation problems.Income Statement
The company's TTM (Trailing-Twelve-Months) results show a decline in total revenue and negative net income, indicating challenges in profitability. The gross profit margin has significantly decreased from 25.4% in 2023 to 12.0% in TTM. Net profit margin has turned negative at -4.9% TTM compared to 7.1% in 2023. Revenue growth rate from 2022 to 2023 was strong at 75.4%, but the recent TTM shows a concerning decline of 33.4% in revenue. EBIT margin is negative at -2.9% TTM, showing operational inefficiencies. EBITDA margin is positive at 10.9% TTM, but it has decreased from 20.8% in 2023, reflecting reduced earnings before interest, taxes, depreciation, and amortization.48
Neutral
Balance Sheet
The balance sheet shows a solid equity base with an equity ratio of 55.0% TTM, up from 45.5% in 2023, indicating increased financial stability. The debt-to-equity ratio has improved to 0.18 TTM from 0.45 in 2023, reflecting reduced leverage. However, return on equity has turned negative at -6.5% TTM, compared to 16.7% in 2023, due to negative net income. Overall, the balance sheet suggests improved capital structure but weakened returns.60
Neutral
Cash Flow
The cash flow statement reflects significant challenges, with free cash flow turning negative at -$59.34 million TTM compared to -$15.94 million in 2023, showing a deterioration in cash generation. The operating cash flow to net income ratio is 0.33, indicating lower cash generation relative to net income. Free cash flow to net income ratio is negative, pointing to issues in sustaining cash reserves. Free cash flow growth rate is significantly negative, highlighting cash flow management issues.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 422.79M | 634.48M | 361.99M | 247.67M | 242.08M | 317.44M | Gross Profit |
| 50.63M | 161.09M | 48.51M | 8.85M | 16.48M | 21.00M | EBIT |
| -12.13M | 65.01M | 30.43M | -6.66M | 5.55M | 8.15M | EBITDA |
| 46.02M | 131.98M | 78.31M | 45.31M | 45.20M | -14.17M | Net Income Common Stockholders |
| -20.59M | 44.79M | 18.11M | -3.75M | -6.22M | -59.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.83M | 2.84M | 3.01M | 2.55M | 8.04M | 9.04M | Total Assets |
| 515.50M | 589.78M | 630.55M | 353.98M | 384.13M | 425.63M | Total Debt |
| 181.05M | 119.69M | 101.74M | 107.77M | 141.62M | 173.64M | Net Debt |
| 165.54M | 112.57M | 98.73M | 105.22M | 133.58M | 164.84M | Total Liabilities |
| 256.63M | 321.19M | 415.53M | 167.75M | 194.87M | 230.10M | Stockholders Equity |
| 254.87M | 268.59M | 215.02M | 182.24M | 185.26M | 191.53M |
| Cash Flow | Free Cash Flow | ||||
| -59.34M | -15.94M | 149.00K | 19.92M | 31.89M | 2.71M | Operating Cash Flow |
| 6.87M | 59.41M | 54.17M | 47.97M | 52.58M | 38.24M | Investing Cash Flow |
| -62.84M | -75.29M | -53.37M | -27.52M | -18.19M | -30.20M | Financing Cash Flow |
| 58.89M | 16.57M | -207.00K | -26.69M | -35.63M | -14.83M |
Hallador Energy Company Technical Analysis
Neutral
9.58
Price Trends
11.02
Negative
11.21
Negative
9.39
Positive
Market Momentum
-0.62
Positive
44.36
Neutral
30.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNRG, the sentiment is Neutral. The current price of 9.58 is below the 20-day moving average (MA) of 10.16, below the 50-day MA of 11.02, and above the 200-day MA of 9.39, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HNRG.
Hallador Energy Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.19B | 8.95 | 19.34% | 11.29% | -4.60% | -42.35% | |
75 Outperform | $29.05B | 9.38 | 12.65% | ― | 5.89% | 27.09% | |
72 Outperform | $1.68B | 4.78 | 10.41% | 2.33% | -14.50% | -46.36% | |
70 Outperform | $3.87B | 7.01 | 19.67% | 0.70% | -13.20% | -51.56% | |
57 Neutral | $8.36B | 5.49 | -6.03% | 7.47% | 0.03% | -68.64% | |
47 Neutral | $408.27M | ― | -6.98% | ― | -36.61% | -122.92% |
* Energy Sector Average
Performance Comparison
HNRG
Hallador Energy Company
9.58
1.81
23.29%
ARLP
Alliance Resource
24.79
7.25
41.33%
CNC
Centene
58.57
-18.18
-23.69%
BTU
Peabody Energy Comm
13.81
-11.09
-44.54%
CNR
Core Natural Resources
76.41
-4.50
-5.56%
Hallador Energy Company Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -8.33% | Next Earnings Date: Mar 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant achievements such as signing a nonbinding term sheet with a major data center developer and executing a $60 million PPA, alongside increased power segment margins and a reduction in bank debt. However, there were notable challenges, including a decrease in coal sales and a decline in Adjusted EBITDA. The overall context suggests cautious optimism with strategic positioning in the energy markets.Highlights
Nonbinding Term Sheet with Global Data Center Developer
Successfully signed a nonbinding term sheet with a leading global data center developer. This could secure long-term contracts for a substantial portion of the plant's energy and capacity at improved margins.
Increase in Power Segment Gross Margin
Gross margin for the Power segment increased to $16.36 per megawatt hour sold, up from $8.11 in Q2.
Execution of $60 Million Prepaid Power Purchase Agreement
Executed a $60 million prepaid power purchase agreement with an existing customer, following a $45 million PPA signed in Q2.
Reduction in Bank Debt
Reduced total bank debt to $23.5 million at the end of October from $91.5 million at the end of last year.
Improvement in Megawatt Hour Production
Hallador Power generated 1.1 million megawatt hours in Q3, up from 800,000 megawatt hours in Q2.
Lowlights
Decrease in Coal Sales
Coal sales were $48.3 million for the quarter compared to $134.4 million in the prior year period due to a reduction in coal production as part of the Sunrise Coal division restructuring.
Operating Cash Usage
Operating cash used for the quarter was $12.9 million compared to operating cash flow of $23.5 million in Q2 and $35.3 million in the prior year period.
Adjusted EBITDA Decline
Adjusted EBITDA was $9.6 million for Q3 compared to $35.9 million in the prior year period.
Company Guidance
During Hallador Energy's Q3 2024 earnings call, several key metrics were shared, reflecting the company's financial and operational performance. Hallador Power generated 1.1 million megawatt hours this quarter, an increase from 800,000 megawatt hours in Q2, which contributed to a rise in gross margin to $16.36 per megawatt hour from $8.11 in the previous quarter. Electric sales revenue was reported at $71.7 million, up from $59.4 million in Q2, while coal sales were $48.3 million, slightly higher than the $45.7 million in Q2. However, net income was $1.6 million, recovering from a net loss of $10.2 million in Q2. The company's forward energy and capacity sales stood at $616.9 million, with total forward sales, including fuel, reaching $1.42 billion, up from $1.37 billion in Q2. Additionally, Hallador executed a $60 million prepaid power purchase agreement post-Q3, further strengthening its liquidity, which was $53.8 million by the end of October.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.